As the world continues to transition online, companies such as GoDaddy (NYSE:GDDY) have continued to be in focus for investors. However, this year hasn’t necessarily been a good one for GoDaddy. Today, GDDY stock is down approximately 5% at the time of writing, due to a GoDaddy data breach.
Reportedly, an unauthorized third-party access caused the email addresses of as many as 12 million GoDaddy WordPress customers to be compromised. The size and scale of this data breach is certainly concerning. Unsurprisingly, investors appear to be pricing security-related risks into GDDY stock on this news.
Data breaches have become more commonplace in recent years, as hackers pick up their game. What will ultimately be done with this email data is unknown. However, the threat that this data breach could be larger than the company is letting on has some investors concerned.
Let’s dive into what we know right now about this data breach.
What to Know About the GoDaddy Data Breach
- GoDaddy reported the company became aware of the data breach on Nov. 17.
- Via a filing today with U.S. regulators, the company disclosed the extent to which it believes customers may be impacted.
- Reportedly, a compromised password led hackers to gain access to GoDaddy’s system.
- Users may be more exposed to phishing attacks, and some password data may have been leaked as well.
- Additionally, the company is reportedly working with an IT forensics firm and law enforcement on this issue.
- GoDaddy has also said it has reset customer WordPress passwords and private keys.
- The company is in the process of replacing SSL certificates and is working to get this resolved as quickly as possible.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.