Cyber Security Cloud, Inc. (Headquarters: Shibuya-ku, Tokyo, Representative Director, President and CEO: Toshihiro Koike, hereinafter “our company”) announced the number of leaks from January 1, 2021 to December 31, 2021. Based on more than 1,000 cases of personal information leaks related to major cyberattacks, we are pleased to announce the Investigation Report on Disclosure of Personal Information Leakage Damage and Changes in Stock Prices.

In recent years, the number of cyberattacks and the sophistication of attack methods have increased cybersecurity threats to companies. Recently, ransomware infections have occurred through attacks that exploit software and system vulnerabilities and targeted emails. There are many cases of damage such as being forced to do so. If personal information is leaked due to such a cyberattack, not only will the brand image of the company be damaged, but there is also the risk of suffering significant economic losses, such as a drop in stock prices and the burden of compensation for damages.
Against this backdrop, we have investigated the impact of personal information leakage damage on company stock prices.

■ About 80% of the listed companies that announced personal information leaks saw their stock prices fall immediately after the announcement
Even after 30 days, the decline widens

Of the 110 incidents of personal information leaks covered in the survey, 24, or about 20%, occurred at listed companies, and 18 of those incidents were personal information leaks related to cyberattacks. . Furthermore, when comparing the closing prices of the stock prices of the listed companies that suffered the above damage from the day before the timely disclosure of information regarding the information leak and the day after the timely disclosure, the stock prices of 14 companies, or about 80%, fell. Of the 14 companies, the maximum drop was 21.6% and the average drop was 2.8%. Similarly, comparing the day before the timely disclosure of information leaks of 14 companies, 30 days after the timely disclosure, and 60 days after the timely disclosure, the average rate of decline was 5.2% and 5.0%, indicating that the rate of decline will continue to expand until the 30th day. understood.

■Comment from Yoji Watanabe, Representative Director, CTO
According to this survey, more than 20% of information leaks occurred at listed companies that must have a robust security system in place. We found that the stock price of a company continues to have a negative impact not only immediately after the incident is announced, but also over the long term. In recent years, in addition to these effects, there have been many cases where companies have been demanded a ransom and suffered significant damage. Under such circumstances, it is believed that the approach to cyber security measures of investee companies is becoming an important factor in investment decisions for many investors. Cyber security measures have become an issue that should be addressed not only by some advanced companies and IT companies that are actively promoting measures, but also by all companies in Japan. In particular, listed companies place importance on measures such as regularly reviewing their own cybersecurity, and build an internal system that regularly checks the vulnerabilities of their websites and quickly notices attacks. is likely to become even more important.

<Survey overview>
-Survey period: January 1, 2021 to December 31, 2021
-Survey target: Main personal information leakage cases with a scale of damage of 1,000 or more related to unauthorized access in corporations and organizations announced during the above period (110 cases)
-Research method: Cyber Security Cloud research

[About Cyber Security Cloud, Inc.]
Company name: Cyber Security Cloud, Inc.
Location: VORT Ebisu maxim 3F, 3-9-19 Higashi, Shibuya-ku, Tokyo 150-0011
Representative: Toshihiro Koike, Representative Director, President and CEO
Established: August 2010
URL: https://www.cscloud.co.jp/