LinkedIn CFO Steve Sordello claimed that the company spent between $500,000 and $1 million on forensic work after a database of users’ passwords was stolen by hackers.
Sordello explained that this was only beginning, as the company plans to spend $ 2 to $ 3 million on security purposes in order to prevent data breaches in the future.
“Since the breach, we have redoubled our efforts to ensure the safety of member account on LinkedIn by further improving password strengthening measures and enhancing the security of our infrastructure and data. The health of our network as measured by number of growth and engagement remains as strong as it was prior to the incident,” he said.
In early July hackers stole more than 6,5 million encrypted passwords of users’ accounts. As a result LinkedIn faced a 5 million lawsuit on behalf of users.
Analysts think that LinkedIn needs to invest additional funds in order to hire qualified IT-specialists and to implement more reliable technologies for users’ data protection, including more sophisticated mechanisms for hashing passwords.
