TaskRabbit Tackles Cybersecurity Breach With a Quickness

  • TaskRabbit shut down it's platform in response to a cybersecurity breach
  • Cybersecurity breaches cost U.S. companies an average of $7.35 million in 2017

TaskRabbit took its website and app down April 16 through April 18, as a result of a cybersecurity breach. The company has since brought its site back online, with an ongoing investigation underway. Has TaskRabbit CEO Stacy Brown-Philpot set a new precedent for how technology companies should handle cybersecurity breaches?

Why This Matters: News of cybersecurity breaches at some of the most high-profile companies in the world seems to be the new normal. What’s unique about this breach is the speed with which TaskRabbit addressed it. The company took immediate action to communicate with TaskRabbit users soon after discovering the breach, while also setting the expectation for future updates.

Equifax (EFX +0.62%), Uber, and Yahoo (VZ +1.59%) on the other hand, are examples of companies that did not respond effectively. They took as little as two months or up to two years before going public with news of their breaches. Companies took an average of 191 days in 2017 to discover a breach, and another 66 days to contain it, according to the Ponemon Institute.

Diverse leadership provides companies with more problem-solving tools, broader thinking, and better solutions, according to research by McKinsey & Company. The  companies experiencing these problems will need a broad toolkit to address what can become very expensive issues down the road. The Ponemon Institute also found the average cost of a breach to a U.S. company in 2017 was $7.35 million.

Situational Awareness: On top of tackling cybersecurity breaches, U.S. executives are increasingly concerned about the specter of China dominating the technology space. The country released a report three years ago delineating the 10 industries it planned to control by 2025. All signs point to the country making significant strides in achieving this goal. Look out for how the U.S. private sector and the Trump Administration respond to these two headwinds.

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