Roku (NASDAQ:ROKU) disclosed a second cyber attack affecting 576,000 accounts. Earlier this year, the streaming television service had disclosed unauthorized access to 15,000 user accounts. Following this news, Roku’s trading declined.
Further elaborating on the incident, the company stated that these unauthorized “actors” did not obtain account credentials from Roku itself but acquired login details from elsewhere, possibly other online accounts where users may have reused the same credentials.
Roku added that in approximately 400 instances, these malicious users made unauthorized purchases of streaming service subscriptions using stored payment methods in these accounts. However, the company emphasized that these malicious “actors” did not gain access to sensitive information such as full credit card numbers.
Roku’s Response
In order to protect its users, the company has enabled two-factor authentication of passwords for more than 80 million users, regardless of whether they were affected or not. Roku has also reset the passwords for the affected users and directly notified these customers. The company is also refunding unauthorized purchases made through the affected accounts.
Is Roku a Buy, Sell, or Hold?
Analysts remain cautiously optimistic about Roku stock, with a Moderate Buy consensus rating based on eight Buys, 10 Holds, and two Sells. Year-to-date, Roku has declined by more than 30%, and the average Roku price target of $86.69 implies an upside potential of 42.6% from current levels.
