Okta’s stock slumps after security company says it was hacked
Okta, a major provider of security technology for businesses, government agencies and other organizations, said 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 in a securities filing. Okta said that system is separate from its main client platform, which was not penetrated.
Some of the world’s biggest companies, including FedEx, Hewlett Packard and T-Mobile, use Okta to secure access to the computer systems (Paramount, which owns CBS News, is also an Okta customer.)
Okta shares slid on news of the intrusion, falling early 12% to $75.57.
“Attacks such as this highlight the importance of remaining vigilant and being on the lookout for suspicious activity,” Bradbury said.
Okta said it has notified all customers that were affected by the cyberattack. The company also released internet protocol and other information aimed at helping customers detect if their systems were compromised in the hack.
The cost of a typical data breach in the U.S. reached nearly $4.5 million this year, a record high, according to IBM. That’s up more than 15% from $3.9 million in 2020.
and other types of cybercrime targeting companies has surged in recent years because of the number of companies using internet cloud services to store data.
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