As technology continues to advance and evolve, shared cloud-based platforms face growing cybersecurity threats. Domo, Inc., a cloud-based platform provider of business intelligence tools and data visualization, is not exempt from these hazards. The company’s most recent SEC report reveals a myriad of potential cybersecurity risks that could severely impact its operations and reputation.
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Domo’s platform involves the storage and transmission of customers’ sensitive and proprietary information, making it a prime target for cyberattacks and other malicious Internet-based activities. Additionally, many employees are working remotely, further raising cybersecurity concerns.
Domo relies on third-party service providers to store and process some of its customers’ data, which makes it even more vulnerable to cyberattacks, as monitoring the security measures of their service providers is limited. Furthermore, the company relies on open-source libraries and packages during product development, potentially leaving them exposed to undiscovered vulnerabilities.
Compounding this situation, key service providers may be targeted or impacted by significant supply chain cybersecurity attacks, potentially disrupting service even if Domo itself has not been directly attacked. The company’s ability to monitor third-party service providers’ security measures is limited, rendering it incapable of guaranteeing a truly secure environment.
Unauthorized access to Domo’s platform or data could manifest itself in various ways, including financial attacks such as ransomware or fraud, political motivations like cyber-espionage, or ideologically driven actions. Employees, vendors, and service providers could be responsible for security breaches without any compromise of the platform or systems, which would increase the likelihood of negative publicity and reputational harm for Domo.
As Generative Artificial Intelligence (GenAI) technologies become more integrated with enterprise use, there are increasing risks of processing sensitive information, intellectual property, trade secrets, and other data. Data breaches at GenAI platforms or infrastructures could lead to exposure of sensitive information, financial damage, and reputational harm for Domo.
Additionally, insider threats pose considerable risks to the company’s business, jeopardizing the confidentiality, integrity, and availability of its customer data. Malicious insiders could exploit their privileges, leading to data breaches and unauthorized access, while accidental insiders may inadvertently expose critical information due to negligence or lack of awareness.
If Domo were to suffer a security breach, the consequences could be devastating. A breach could lead to a loss of business, severe reputational damage, regulatory fines for compliance violation, increased insurance costs, and other financial burdens. The company’s platform and infrastructure could experience interruptions or performance problems due to a variety of factors, such as infrastructure changes, human or technology errors, distributed denial of service attacks, or other security-related incidents.
Domo would have to invest in extensive measures to alleviate security problems and restore its reputation. Such efforts may be costly, time-consuming, and may not guarantee success. Moreover, actual, potential, or anticipated attacks could increase costs for deploying additional personnel and protection technologies or engaging outside consultants. The company cannot be certain that its coverage will be adequate for liabilities incurred, that insurance will continue to be available on economically reasonable terms or at all, or that any insurer will not deny coverage as to any future claim.
With cybersecurity threats on the rise, specifically those targeting cloud-based platforms, Domo, Inc. is submerged in a constantly shifting landscape of risks and vulnerabilities. As the company endeavors to remain a provider of secure, reliable cloud services, these risks must be carefully managed and mitigated to safeguard both the company and its customers.
Note that we may hold securities mentioned in this article. All data is based on recent SEC filings. Even though we have implemented various manual and automatic fact-checking and data acquisition processes, some incorrect information may have slipped through (false positive). Let us know if you find any inconsistencies!