Capital One shares drop on questions over hack

Source: Business Insurance

Thomson Reuters July 30, 2019 (Reuters) — Capital One Financial Corp.’s assurances that a major data breach would have a limited impact on customers or profits failed to convince investors on Tuesday, with the bank’s shares down more than 7%. Capital One said the prior day that 106 million people who had applied for credit cards in the United States and Canada had their personal data exposed. The bank expects the incident to cost $100 million to $150 million this year, some of which may be covered by a sizeable insurance policy. It also confirmed prior guidance that operating efficiency would improve. However, investors are wary, given the scale of the breach, the reputational impact on Capital One and likelihood of additional costs, analysts said.