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How a data breach affects the bottom line

A study shows how market falls when companies disclose they have been hacked

ATM hack
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Cybercriminals are targeting US cash machines with tools that force them to spit out cash, known as “jackpotting”

Peter R Orazag | Bloomberg
Cyber attacks are an increasingly common threat to business, with risk officers listing cybersecurity as their greatest concern and more than 2,200 confirmed data breaches in 2017, according to a new report from Verizon. The headlines about hacking often focus on potential harm to consumers whose data is stolen, but there hadn’t been a systematic analysis of the effects of cyberattacks on a company’s sales, market valuation and other metrics. A recent study does just that, though imperfectly.

Using events reported as cyber-breaches in the nonprofit Privacy Rights Clearinghouse, a team of economists from Singapore, Cyprus, Hong Kong and the US