Chuck Leaver – Target Lost Money And It Took Months To Recover So Here Is What You Need To Do To Prevent This From Happening To Your Organization
By Chuck Leaver CEO Ziften
After Target was breached it took several months for the company to recover and be given 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 major news stories it faded into the background as far as being covered nationally, however as far as the store is concerned it was still a significant priority. The store lowered its profit forecasts for 2014 once again, which implies that the company had undervalued the impact of the destructive attack that they were exposed to, according CNN Money.
The reduction in earnings was actually considerable and the business ended up declaring 62% less revenues. In addition to this they needed to pay $111 million as a direct outcome of the breach in the second financial quarter and all of this adds up 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 started to emerge. Info for around 110 million individuals was jeopardized, and stolen credit card data was experienced by 40 million of those individuals. As news went out about the breach, the company made some significant modifications which included the application of more stringent cyber security procedures and changing of the system admin. Long standing CEO, Gregg Steinhafel, also resigned. But it is not deemed enough to reduce the effect of the attack. The stakeholders of Target are absorbing the unfavorable effects of the attack as much as the business itself according to Brian Sozzi of Belus Capital.
In an email to CNN Money Sozzi stated “Target just dropped an epic full year profits warning onto the heads of its remaining investors.” “Target has given investors ZERO reason to be encouraged that a worldwide turn-around is covertly emerging.”
Target Provides A Lesson For All Organizations About Improved Pre-emptive Measures
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 organization no matter how you call it or try to repair it. Preventative measures are the best way forward and you have to take steps to ensure an attack does not happen to your organization in the first place. Making use of endpoint threat detection software can have a considerable role in maintaining strong defenses for any organization that decides to implement it.