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Technology
Cybersecurity


OKTA SAYS HACKERS STOLE DATA FOR ALL CUSTOMER SUPPORT USERS

 * Okta had earlier said breach affected about 1% of customers
 * Company said some Okta employee information was also stolen

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By Graham Starr
November 29, 2023 at 3:41 AM GMT+1
Updated on
November 29, 2023 at 3:35 PM GMT+1
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2:36

Okta Inc. has discovered that hackers who breached its network two months ago
stole information on all users of its customer support system — a scope far
greater than the 1% of customers the company had previously said were affected.

The company, which manages user authentication services for thousands of
institutions, notified customers in a letter Tuesday that it has now determined
the hackers downloaded a report containing data including names and email
addresses for all clients in its customer support system. As a result, Okta
warned customers may face an increased risk of attacks and urged them to use
strong multifactor authentication.



Shares plunged as much as 10% to $65 in premarket trading before the company
reported earnings that beatBloomberg Terminal estimates and erased some of those
losses. The stock was down 2.8% to $70.56 as markets opened in New York.



Tuesday’s findings underscore how the San Francisco-based firm continues to
grapple with the fallout of the cyberattack first disclosed last month, when it
estimated that about 184 clients — representing roughly 1% of customers — were
affected. It wasn’t the first time Okta had been breached: A hacking group broke
into its system last year and posted screenshots that appeared to show access to
Okta accounts. Chief Executive Officer Todd McKinnon vowed after that attack to
work to restore trust in Okta’s brand.

Okta confirmed that it sent a notice to customers on Tuesday, warning them that
they may face an increased risk of phishing and social engineering attacks. The
company also said it pushed new security features and recommendations to defend
against targeted attacks.

“We are working with a digital forensics firm to support our investigation and
we will be sharing the report with customers upon completion,” Okta said in a
statement.

Read More: Okta Falls on News That Hackers Viewed Some Customer Files

Okta said in the customer notice that a recent audit found more data was stolen
than the company had initially thought, prompting the firm to revise its
findings. It also discovered that some Okta employee information was included in
stolen reports, according to the customer notice reviewed by Bloomberg.



The customer report contained fields for customer user names, company names and
mobile phone numbers, Okta said, while noting that the majority of the fields
were blank and didn’t include credentials or sensitive personal data. For more
than 99% of customers listed in the report, Okta said, contact information
consisted of full names and email addresses.



Many of the affected users of the customer support system are Okta
administrators, according to the company’s notice.

In reporting financial results, the company forecast adjusted earnings of 50
cents to 51 cents a share for the fourth quarter, beatingBloomberg Terminal the
36-cent average of Wall Street estimates.



(Updates share price in third paragraph)

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