Okta Inc., the user authentication services provider, has uncovered that hackers who breached its network a couple of months ago managed to steal information on all users of its customer support system. This revelation expands the scope of the breach, as initially the company had estimated that only 1% of customers were affected. Okta notified its customers through a letter on Tuesday, stating that the hackers downloaded a report that contained data like names and email addresses for all clients in its customer support system. Consequently, Okta warned its customers of an increased risk of attacks and urged them to use strong multifactor authentication.
Following this news, shares of Okta plunged as much as 10% in premarket trading, but recovered slightly after the company reported earnings that beat estimates. The incident continues to highlight the challenges faced by the San Francisco-based company in dealing with the aftermath of the cyberattack first disclosed last month.
This is not the first time that Okta has experienced a breach. Last year, a hacking group infiltrated its system and posted screenshots that exposed access to Okta accounts. In response to the breach, Okta’s CEO, Todd McKinnon, promised to work towards restoring trust in the company's brand.
Okta has confirmed that it sent a notice to customers, warning them of an increased risk of phishing and social engineering attacks. It has advised customers to implement new security features and follow recommendations to safeguard against targeted attacks. The company is currently working with a digital forensics firm to support their investigation into the breach and plans to share the complete report with customers once it is completed.
In its customer notice, Okta revealed that a recent audit revealed that more data was stolen than the company had initially anticipated, prompting them to revise their findings. Additionally, it was discovered that some personal information of Okta employees was also included in the stolen reports.
The stolen customer report contained fields such as customer user names, company names, and mobile phone numbers, but the majority of the fields were blank and did not include any sensitive personal data or credentials. Okta disclosed that for over 99% of customers listed in the report, the contact information only consisted of full names and email addresses. Notably, many of the affected users of the customer support system are Okta administrators, according to the company’s notice.
While the breach has undoubtedly caused concern, Okta reported financial results that exceeded expectations. The company forecasted adjusted earnings of 50 cents to 51 cents per share for the fourth quarter, beating the Wall Street estimate of 36 cents. Nonetheless, the breach highlights the ongoing challenges faced by organizations when it comes to securing customer data in the face of persistent and evolving cyber threats.