Block Inc. (ASX:SQ2) shares rally as ASX tech sector picks up

April 05, 2022 04:01 PM AEST | By Sonal Goyal

Block Inc. (ASX:SQ2) shares rally as ASX tech sector picks up — Image source: © Selagin | Megapixl.com

What’s going on in Block Inc.?

Block Inc. said that it recently came to its knowledge that a data breach had taken place in the company. A former employee had downloaded some documents of Cash app Investing LLC (a subsidiary of Block Inc.) previous year that had some information about US customers.

The software and service company said that this employee had access to the report as part of their job role. However, the reports were downloaded after the employment ended and without the company’s permission. So, what information does the report contain?

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The report included the brokerage account number and the user’s full name. A brokerage account number is a unique identification number on Cash App Investing linked with the stock activity of the customer). Furthermore, the report included information regarding the brokerage portfolio holdings, brokerage portfolio value and trading activities for one day for some US customers only.

Noteworthy here is that the report did not reveal the social security number, passwords and usernames, payment card information, bank account information, date of birth, address, and personally identifiable information. In addition to this, passwords, access codes or any security code that grants access to the Cash App account was not part of the report.

Only the US customers are affected, and others remain unaffected. Also, only the stock activity-related information has been disclosed; the rest information related to features or products of the Cash app is safe.

Block Inc.'s action plan on data breach

Image source: © Flynt | Megapixl.com

Block Inc. involved a leading forensics firm in conducting the data breach investigation. To circulate the information regarding the data breach, around 8.2 million existing and past customers are contacted by the company. Resources that can clarify their doubt are also shared with them. Relevant regulatory authorities and law enforcement are informed about the incident.

At present, Block Inc. could not estimate the data breach costs. But based on the preliminary assessment, the company believes that there will be no material impact on the financial, operational and business results.

Block’s share performance

Block Inc. shares have grown 40% in a month, and since its listing on ASX to date, it reported a gain of 9%, including today’s growth.

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