Chuck Leaver – It Took Target Months To Recover From A Cyber Attack And They Lost Millions Too

By Charles Leaver CEO Ziften



After Target was breached it took several months for the company to recuperate and be provided a clean bill of health.

Continuous Recovery Effort And Reports Of Financial Loss

It was a major story when Target suffered from its data breach. Like all significant news releases it faded into the background as far as being covered nationally, however as far as the company is concerned it was still a significant top priority. The store reduced its revenue projections for 2014 once again, which suggests that the business had undervalued the impact of the malicious attack that they were exposed to, according CNN Money.

The decrease in profits was really considerable and the company ended up stating 62% less earnings. In addition to this they had to pay out $111 million as a direct outcome of the breach in the 2nd financial quarter and all of this amounts to a business that was at one time robust now looking a shadow of its former self because of a cyber attack.

As the fallout continued, the scale of the cyber attack began to emerge. Data for around 110 million people was compromised, and stolen credit card data was experienced by 40 million of those people. As news went out about the breach, the business made some major modifications which included the application of more rigid cyber security measures and the change out of the system admin. Long standing CEO, Gregg Steinhafel, also resigned. However it is not deemed enough to reduce the effect of the attack. The stakeholders of Target are absorbing the unfavorable results of the attack as much as the business itself according to Brian Sozzi of Belus Capital.

In an e-mail to CNN Money Sozzi said “Target simply dropped an epic complete year earnings warning onto the heads of its remaining investors.” “Target has offered financiers ZERO reason to be encouraged that a worldwide turn-around is covertly emerging.”

Target Supplies A Lesson For All Organizations About Improved Pre-emptive Steps

No matter how proactive a company is to a cyber attack, there is no assurance that the recovery time will be quicker. The bottom line is that a data breach is bad news for any company no matter how you call it or try to fix it. Preventative procedures are the very best way forward and you need to take actions to make sure an attack does not happen to your organization in the first place. The use of endpoint threat detection systems can have a substantial role in preserving strong defenses for any company that decides to implement it.


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