How data breaches can affect reputation and stock prices

Data breaches can really harm modern-day companies, both big and small: business interruption and loss of customer or sensitive data are just some of the well known impact a cyber attack can bring.

A recent report from Comparitech has shown how a data breach can impact your stock price, sometimes for years to come.

  • Right after a breach, a stock price will drop 0.43% on average
  • In the long term, share prices continue to rise on average, but at a much slower pace. Before a breach, the stock price of the companies increased by 45.6% over three years, on average. After a breach though, those stock prices only grew 14.8% in the same time period.
  • Finance companies experienced the largest immediate decline in share price directly after a breach, but internet businesses, such as ecommerce and social media companies, suffered the most in the long term.
  • Breaches of highly sensitive data, such as credit card and social security numbers, had a greater impact on the immediate drop in share price following a breach than companies that leaked less sensitive info, such as email addresses.

To read the full report click here.