Marriott CFO Says Too Early to Estimate Cyber Breach Costs

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It’s too soon for Marriott International Inc. to estimate the cost of the massive cyber breach that the company disclosed last week, and other companies that have suffered big attacks are imperfect proxies, said Chief Financial Officer Leeny Oberg at an investor conference today.

“Any situation that you’ve seen from other companies, they are all highly individual, and no one should make an assumption about, if it was this way for one company, it will be that way for another,” Oberg said at the Barclays Gaming and Lodging Conference, marking the first public comments by a top executive since the company disclosed the hack. “You do expect there will be material costs associated with this.”
Marriott, said on December 1, according to the company’s personal information about 500 million people have been violated, he said. Hack has affected the system for Starwood Hotels and Resorts, which the Marriott purchased for $ 13.6 billion in 2016, and in some cases credit card data, passport numbers and loyalty account information were announced.

In a note from Morgan Stanley last week, the company could face $ 200 million in drying and litigation costs, and could spend around $ 1 for each customer informing the victims and offering free data monitoring services.

According to Bloomberg Intelligence analysts Tamlin Bason and Holly Froum, the company’s legal responsibility may be even higher. Accordingly, the costs were up to $ 1 billion, including a potential fine of about $ 450 million, or about 2 percent of the company’s 2017 revenue. General Data Protection Regulation.

Multiple Studies
Now Marriott is facing expectations of general inspections of state proxies, European regulators and consumer cases. The company also faces pressure from the Senate Trade Committee, which sets December 17 to present the details of its investigation and a timetable of events.

The Marriott is still investigating the scope of a denunciation and according to a spokesperson in the process of informing customers. The company said it would pay for a web tracking service and would also cover the cost of replacing the passports. It carries insurance to cover some of the costs.

According to this year’s report from Trustwave Holdings, an information security company, hospitality was the most targeted sector. Thieves are targeted at credit card readers in point-of-sale attacks, as is the case with campaigns designed to provide malicious software for front office officials.
Previous Hacks
Hilton Worldwide Holdings Inc., Hyatt Hotels Corp. and the InterContinental Hotels Group had been targeted to all attacks, but the Marriott attack dwarfs these hackers in terms of the number of guests affected.

Oberg said Marriott has invested in improving data security for many years and has begun to invest more quickly as a result of the violation.

Berg In 2013, 2014, in 2015, in general, as you think in the corporate system in America, there has been a dramatic improvement so far, ‘Oberg thought. Ilgili This is about continuing with the bad guys. They’re just getting more sophisticated. “

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