LinkedIn Reveals Data Breach Will Cost up to $4 Million in Near Term

Due to one of the year’s largest reported data breaches, business networking site LinkedIn has announced that it already has taken up to a $1 million hit.

During its second-quarter earnings call last Thursday, LinkedIn CFO Steve Sordello said the costs involved with recuperating from the incident so far range from $500,000 to $1 million, which is going toward forensic work and “other elements” relating to the breach.

The 175-million-member company continues to strengthen its website’s security to protect members, and is expected to add $2 million to $3 million in costs in the current quarter toward those efforts.

“Since [the breach], we have redoubled our efforts to ensure the safety of our member account on LinkedIn by further improving password-strengthening measures and enhancing the security of our infrastructure and data,” Jeff Weiner, CEO of LinkedIn, said during the call. “The health of our network as measured by growth and engagement numbers remains as strong as it was prior to the incident.”

Earlier this year, attackers dumped 6,458,020 encrypted LinkedIn passwords on a Russian forum to solicit assistance in decoding them.

Posted at SC Magazine.

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