Netflix's new documentary on the Ashley Madison hack shows how cyber breaches have lasting impacts on companies and CEOs, even years later.
The infamous dating website Ashley Madison, known for facilitating extramarital affairs, is the subject of a new Netflix documentary titled "Ashley Madison: Sex, Lies & Scandal." The documentary delves into the 2015 hack that exposed the private information of over 30 million users, highlighting how the breach's consequences continue to affect those involved. This serves as a stark reminder that the repercussions of cybersecurity incidents can haunt companies and their leaders for years. As illustrated by other high-profile breaches, it doesn't matter how long ago a breach occurred; its impact can resurface, damaging reputations and careers long after the initial incident.
Ashley Madison rose to fame in the early 2000s as the first dating website for married people seeking affairs. By 2015, the site had nearly 40 million users worldwide and was projected to earn $150 million in revenue. However, in July 2015, a group called The Impact Team hacked the site, stealing user data that was then posted online in August 2015. The fallout from the leak led to the resignation of the CEO and public humiliation for many users, including high-profile figures such as Josh Duggar and Hunter Biden.
The Netflix documentary explores not only the technical details of the hack but also the personal stories of those affected. Director Toby Paton highlights the unusual sophistication of the hack and suggests that the culprit might have had inside knowledge of Ashley Madison. Despite the 2015 hack, Ashley Madison has continued to thrive. Rebranded and revamped, the site now boasts 80 million users. Under new leadership, the company has increased cybersecurity measures and removed fake profiles. Although it has returned to its original logo and motto, Ashley Madison’s success persists, demonstrating its enduring appeal despite past controversies. This serves as a stark reminder that the consequences of data breaches can have long-lasting impacts, no matter how much time has passed.
Similarly, cyber incidents can define a CEO’s career, as can a blush-worthy security faux pas that captures the attention of their board, the media, or even the FTC. For many years, cybersecurity was viewed as a purely technology-related challenge to be managed by the CIO or CISO. However, this thinking is changing as more CEOs are held accountable for cyber failures. Warren Buffet once said, “It takes 20 years to build a reputation and five minutes to ruin it.” Business leaders should heed these words and reassess their relationship with cybersecurity, understanding that cyber risk is a critical business risk. Research reveals that 69% of business and tech leaders still view cybersecurity as primarily a technology issue with little business relevance, a myopic view that can have disastrous results.
Take the Target breach of 2013. Hackers accessed Target's customer data through compromised third-party credentials and an improperly segmented network. The breach affected 40 million payment cards and 70 million customer records, costing Target over $200 million. CEO Gregg Steinhafel resigned months later and struggled to find top executive roles afterward.
Similarly, the Equifax breach of 2017 saw Chinese hackers steal data on 145 million customers due to a failure to patch a known vulnerability. The breach cost Equifax over $1.4 billion and led to a downgrade by Moody’s and a $700 million settlement with the FTC. CEO Richard Smith was forced into early retirement.
In another case, the TalkTalk breach of 2015 involved an attack on unpatched legacy systems, compromising the data of around 150,000 customers. CEO Dido Harding's poorly managed response led to a loss of credibility, and she eventually resigned. These examples illustrate how cybersecurity incidents can have devastating personal and professional repercussions for CEOs.
Cyber incidents are increasingly becoming personal for CEOs, who are being targeted in sophisticated scams like whaling and deepfake attacks. Regulators are also tightening the reins, with the SEC and FTC imposing stricter requirements and consequences for cybersecurity failings. The case of Drizly CEO James Cory Rellas, who must implement an FTC-approved security program at any future company he leads, serves as a warning to CEOs who neglect cybersecurity.
To preserve their reputation and their company’s bottom line, CEOs must create a culture where cybersecurity is integrated into every aspect of the business. This involves ensuring all employees understand their role in maintaining security, having a robust incident response plan, and being prepared to communicate effectively during a breach. As Polpeo’s Kate Hartley advises, “Security is a culture issue, not just an IT issue. Every leader should be able to talk competently about security. Security should be on every board meeting agenda.”
A cyber-attack could define a CEO’s career, making it imperative for business leaders to prioritize and invest in cybersecurity proactively. The ongoing impact of the Ashley Madison breach, highlighted in the new Netflix documentary, serves as a powerful reminder of the long-term consequences of cybersecurity failures. It doesn't matter how much time has passed since a breach; its repercussions can resurface and cause damage long after the incident itself.
