KeyBanc: Fortinet data breach seems most likely insignificant

Fortinet's (NASDAQ:FTNT), the recent data breach was quickly contained and of a small magnitude, so KeyBanc likely considered the incident to be non-material.

Fortinet was Decline of less than 3% during premarket trading on Friday. The incident came to light on Thursday afternoon.

“Fortinet points out that the data covers less than 0.3% of customers (Fortinet last reported 500,000 customers in Q2 2024),” KeyBanc noted.

The actor gained access to some files stored on Fortinet's instance of a third-party cloud-based shared file drive.

“The incident did not involve data encryption, the use of ransomware, or access to Fortinet's corporate network,” the company said. “To date, there is no indication that this incident resulted in malicious activity affecting customers.”

Fortinet confirmed that it immediately implemented a plan to protect customer data and informed all affected parties.

“Given the limited nature of the incident, we have not identified, and do not currently expect, a material impact on our financial condition or results of operations,” Fortinet said in an update.

Nevertheless, Fortinet notified law enforcement and several cybersecurity agencies around the world. The cybersecurity company also contacted an external forensics team to confirm the findings.

“In addition, we have implemented additional internal processes to prevent a similar incident from happening again, including enhanced account monitoring and threat detection measures,” the company said.