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SmileDirectClub Cyberattack Could Cost The Company $15 Million
From: Destry Winant <destry () riskbasedsecurity com>
Date: Tue, 11 May 2021 09:28:04 -0500
https://www.forbes.com/sites/leemathews/2021/05/04/smiledirectclub-cyberattack-could-cost-the-company-15-million/?sh=552a62e3e220 Nashville-based SmileDirectClub (SDC) rebounded from a tough, pandemic-driven 2020 and posted a strong first quarter this year. Yesterday the company warned its second quarter results may take a substantial hit due to a recent cyberattack. CVS SmileDirect Expansion According to a breach notification filed with the Securities and Exchange Commission, SDC “experienced a systems outage that was caused by a cybersecurity incident on April 14, 2021.” The filing offers little insight into the actual breach. It does mention that internal engineers responded quickly and impacted systems were powered off or isolated from the reset of the company’s network. SmileDirectClub’s manufacturing systems were among those affected. “Leading forensic information technology firms” have been brought in to help the SDC investigate the incident and assess the damage. The filing also states that SDC did not pay a ransom and that its systems are “back online and performing normally.” Curiously, SDC claims to have been able to “block the attack.” Based on the rest of the information offered in the filing it appears that it may actually have been interrupted before progressing to a more dangerous phase. The initial investigation has not revealed any concerns about the integrity of SDC’s data so far. The interruption to its operations and remediation efforts in the wake of the breach may have a substantial cost, however. Prior to the incident SmileDirectClub was anticipating revenues $205 to $215 million range. Those have been knocked down by $10 to $15 million as a result of the cyberattack. It’s a tough pill to swallow after finally recovering from a tough stretch last year. SDC share have taken a hit as well. On Monday afternoon shares were trading at $10.63. At the time of writing the price has fallen to $8.57.
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- SmileDirectClub Cyberattack Could Cost The Company $15 Million Destry Winant (May 06)
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- SmileDirectClub Cyberattack Could Cost The Company $15 Million Destry Winant (May 11)