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Okta plunges after hackers claim cyberattack that puts thousands of the company's business customers at risk

Phil Rosen   

Okta plunges after hackers claim cyberattack that puts thousands of the company's business customers at risk
Stock Market1 min read
  • Shares of Okta dropped more than 7% Tuesday following reports of a data breach.
  • A group called LAPSUS$ posted what it claimed to be photos of Okta's internal servers.

Okta stock dropped Tuesday after a group of hackers claimed an illegal data breach at the digital authentication company.

The hackers, reportedly representing an organization known as LAPSUS$, posted a photo of Okta's internal server in its Telegram channel, per Reuters.

But the photos instead may be connected to a hack attempt from January that has since been resolved, according to Okta CEO Todd McKinnon.

In a tweet, he said there was no evidence of any ongoing malicious activity following a data breach.

He said Tuesday that in January it had "detected an attempt to compromise the account of a third party customer support engineer working for one of our subprocessors," but nothing came of it.

Okta, which has more than 15,000 customers worldwide including T-Mobile and Peloton, facilitates secure management of systems and websites.

Shares were down about 7% in premarket trading Tuesday and have lost about about 25% so far this year through Monday's close.

LAPSUS$, meanwhile, has also said it was responsible for data breaches at Samsung and Nvidia in recent months.

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