Written by 10:29 pm Science & Technology Views: [tptn_views]

Okta cybersecurity breach wipes out greater than $2 billion in market cap

The Okta website on a laptop arranged in Dobbs Ferry, New York, on Feb. 28, 2021.

Tiffany Hagler-Geard | Bloomberg | Getty Images

Okta has shed greater than $2 billion from its market valuation for the reason that company disclosed a hack of its support systems Friday. The high-profile incident is the most recent in a string of incidents which have been tied to Okta or its products, including a spate of intrusions at casinos that crippled Las Vegas hotel rooms for days.

Okta shares slumped greater than 11% Friday after the corporate said an unidentified hacking group was capable of access client files through a support system. The company didn’t provide more details beyond a set of technical identifiers.

The company’s stock continued to fall in Monday trading, ultimately closing down 8.1%.

Okta is a lesser-known name but forms a critical a part of cybersecurity systems at major corporations. The identity management company boasts greater than 18,000 customers who use its products to supply a single login point for many various platforms that a given company uses. Zoom, for instance, uses Okta to offer “seamless” access through a single login to the corporate’s Google Workspace, ServiceNow, VMware and Workday platforms.

Okta said it had communicated with all affected clients in Friday’s announcement. At least one in every of those clients said it had alerted Okta a couple of potential breach weeks earlier.

In a separate post Friday, privately held identity management firm BeyondTrust said it had told Okta’s security teams about suspicious activity in BeyondTrust’s own Okta systems on Oct. 2. Okta didn’t initially acknowledge the incident as a breach after BeyondTrust alerted the corporate, despite what BeyondTrust described as concerns that “there was a high likelihood of compromise inside Okta support and that we were likely not the one customer impacted.”

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Okta shares for the reason that day it first acknowledged a support system breach.

Okta's support system breached using stolen credentials
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