Capital One Financial Corp. COF lost one-third of its employees in its cybersecurity unit in 2018 which may have culminated in the July 2019 data breach, The Wall Street Journal reported.
Capital One's cybersecurity unit suffered high amounts of turnover and may have failed to install necessary software and security checks to defend against a hack, sources told WSJ. Employees raised concerns to executives the cybersecurity business is understaffed and the issue was even discussed at the board level.
The financial institution once held a reputation of being a top place for tech talent to work, especially in the coveted "red team" -- a unit dedicated to finding vulnerabilities in its security system.
Why It's Important
When Capital One named Michael Johnson as chief information security officer in 2017, WSJ said a clash with cybersecurity workers started. Johnson served as the Chief Information Officer for the U.S. Department of Energy and many employees felt his style of leadership style didn't translate well in the private sector.
Many employees flocked Capital One to work at comparable or better jobs elsewhere, according to WSJ. However, a spokeswoman for the bank said its cybersecurity unit was a "net importer of talent."
It's unclear if staffing issues directly resulted in the July databreach which resulted in the theft of personal information of more than 100 million people. The spokeswoman for Capital One told WSJ it will "incorporate the learnings of this incident to further strengthen our cyber defense."
Capitol One shares traded around $84.36 at time of publication, down from the $96 level shares traded at before news of the breach on July 29.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.