Okta’s Stock Takes a Dip Following Disclosure of Security Breach

Okta, a major provider of security technology for businesses, government agencies, and other organizations, announced on Friday that one of its customer service tools had been hacked.

The hacker used stolen credentials to access the company’s support case management system and view files uploaded by some customers. Okta Chief Security Officer David Bradbury disclosed this information in a securities filing. Okta clarified that the hacked system is separate from its main client platform, which was not affected.

Many renowned companies, such as FedEx, Hewlett Packard, T-Mobile, and Paramount (which owns CBS News), rely on Okta to secure access to their computer systems.

Upon news of the intrusion, Okta’s shares fell by 12%, reaching $75.57.

“Attacks like this emphasize the importance of remaining vigilant and being on the lookout for suspicious activity,” stated Bradbury.

Okta has informed all affected customers about the cyberattack. The company has also provided internet protocol and other information to help customers identify if their systems were compromised.

The cost of a typical data breach in the U.S. hit a record high this year, reaching nearly $4.5 million, according to IBM. This represents an increase of more than 15% from the $3.9 million recorded in 2020.

Ransomware attacks and other forms of cybercrime targeting companies have seen a significant surge in recent years due to the widespread use of internet cloud services for data storage.