Source: Dark Reading
Author: Denny LeCompte
URL: https://www.darkreading.com/cyber-risk/hidden-cybersecurity-risks-mergers-acquisitions
ONE SENTENCE SUMMARY:
Ignoring cybersecurity during mergers and acquisitions exposes businesses to hidden vulnerabilities, compliance issues, and costly security breaches post-acquisition.
MAIN POINTS:
- Mergers involve inheriting digital footprints including endpoints, credentials, and hidden security vulnerabilities.
- Cybersecurity is frequently neglected in due diligence, creating substantial risk post-acquisition.
- IT integration chaos often leads to insufficient access control and outdated credential management.
- Legacy systems from acquired companies pose significant cybersecurity threats if not assessed.
- Employees are vulnerable to phishing scams during transitions, increasing insider threat risks.
- Inadequate cybersecurity training can result in sensitive data leaks and breaches post-merger.
- Regulatory and compliance mismatches between companies can create serious legal and financial liabilities.
- Comprehensive cybersecurity audits must evaluate identities, compliance histories, and past breaches.
- Companies should promptly standardize security policies and adopt modern, cloud-native security solutions.
- Proactive cybersecurity integration during mergers is essential to protect reputation, trust, and financial value.
TAKEAWAYS:
- Prioritize cybersecurity due diligence alongside financial and operational assessments.
- Enforce strict access control policies and revoke outdated credentials immediately post-acquisition.
- Conduct thorough audits of legacy IT systems and address incompatibilities proactively.
- Implement cybersecurity awareness and anti-phishing training programs early in the merger process.
- Align quickly with the strictest compliance standards from both companies to mitigate regulatory risks.