New York—The recent cyber attacks
on the customer databases of email service provider Epsilon could ultimately cost the company as much as $225 million in lost business and other expenses, with millions more incurred by Epsilon clients, according to a report by cyber risk analytics company CyberFactors.
The breach accessed email records of almost 60 million contacts from about 50 companies, including Capital One, JPMorgan Chase, McKinsey Quarterly and Walgreens. CyberFactors estimated the attacks could cost these companies an additional $412 million, and possibly much more in legal defense, compliance and loss of business.
While Ed Heffernan, CEO of Epsilon parent Alliance Data Systems Corp., has said
the impact of the breach should be minimal, CyberFactors said Epsilon may likely lose current and prospective clients.