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Cyber Companies Wary of Broader Economic Challenges

By Kim S. Nash

 

Welcome back. Security vendors say they aren’t seeing the impact of tariffs yet, but customer behavior is changing.

Israeli cybersecurity company Check Point Software Technologies, for instance, CFO Roei Golan warned that customer deals could slip from one quarter to the next. Broader cost-cutting measures at companies are further pressuring security budgets. Read our full story.

Also today: The WSJ Pro CyberIndex trended slightly down for the week, with earnings forecasts affecting stock prices.

More news below.

 

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More Cyber News

PHOTO: MARIO TAMA/GETTY IMAGES

Tally so far: Medical-device maker Masimo said it has spent $4.5 million to recover from an April cyberattack that disrupted order fulfillment operations and other systems. The company said in May it didn't expect the attack to have a material impact on finances. (MedTech Dive)

An April ransomware attack at kidney dialysis chain DaVita breached personal and health data of more than 1 million patients, according to disclosures filed with state regulators. (HIPAA Journal)

Columbia University said nearly 869,000 students and applicants had their personal data stolen in a May cyberattack. Names, birthdates and Social Security numbers were breached, as well as "any personal information that you provided in connection with your application to Columbia, or that we collected during your studies if you enrolled," the university said in a notification letter. 

That includes: 

  • Demographic data
  • Academic history
  • Financial aid-related information
  • Insurance and health details 

DHS surveys the damage: The Royal and BlackSuit ransomware groups hit at least 450 U.S. organizations before the Department of Homeland Security's investigative unit took down the hackers' operations in July. The groups, which had been active since 2022, received more than $370 ransom payments through attacks on healthcare, energy, government and other entities. (Bleeping Computer)

About 3,500 employees of the city of St. Paul, Minn., must reset their work devices and passwords as tech officials work to recover services after a ransomware attack in July, Mayor Melvin Carter said Sunday. (CBS News)

  • Online water and garbage payments systems and other citizen services were knocked out in the hack. Gov. Tim Walz called on the National Guard for restoration help. 

State CIOs, city mayors and other government officials are urging Congress to restore funding for a key threat-intelligence group. Cuts to federal funds for the Multi-State Information Sharing and Analysis Center will make state and local governments more vulnerable to hacks, leading to outages in citizen services, according to a letter from the U.S. Conference of Mayors, the National Association of State Chief Information Officers, the National Association of Counties, Major County Sheriffs of America and the National League of Cities. (StateScoop)

  • In 2024, the MS-ISAC helped detect more than 43,000 potential cyberattacks to state and local networks and Identify and prevent more than 59,000 potential malware and ransomware attacks to state and local machines such as workstations and servers, the groups said.
  • Elon Musk's DOGE cut $8.5 million in funding to the MS-ISAC, or most of its budget. 

More than three months after being hacked, Marks & Spencer has restored the last of its downed systems, the U.K. retailer said. The "Click & Collect" service, which lets customers order online and pick up in person, is now available. (The Independent)

 
Alt text.

A Surge in Cyberattacks Hits Small Business

Nearly one in five small businesses that suffered an attack then filed for bankruptcy or shut down. 

WSJ Pro's James Rundle and Seyoung Jeon, lead cyber analyst at security intelligence provider Dragonfly, discuss what companies can do to defend themselves. 

Listen Now
 

WSJ Pro CyberIndex

Quarterly earnings and forecasts, both good and bad, impacted the week's top gainer and loser.

  • Leidos, which focuses on national security and the healthcare sector, raised its full-year guidance after reporting a strong quarter.
  • Firewall maker Fortinet beat earnings estimates yet provided a relatively tepid forecast for the rest of the year.  
 

About Us

The WSJ Pro Cybersecurity team is Deputy Bureau Chief Kim S. Nash and reporters Angus Loten, James Rundle and Catherine Stupp. Follow us on X @WSJCyber. Reach the team by replying to any newsletter you receive or by emailing Kim at kim.nash@wsj.com.

 
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