The case involves cleaning products giant Clorox pursuing legal action against its IT service provider, Cognizant, rather than a former employee directly. Filed on July 22, 2025, in California court, the lawsuit accuses Cognizant's helpdesk of negligence by handing over employee passwords to hackers during a 2023 cyberattack. This enabled attackers to access Clorox's systems, leading to a devastating breach that cost $380 million in damages and disrupted operations for months. The incident highlights the risks of insider threats through third-party vendors, where social engineering (e.g., impersonating staff) exploited weak verification processes. While not a traditional "insider" (no malicious employee intent alleged), it underscores supply chain vulnerabilities in cybersecurity. The story gained widespread attention today (July 24, 2025), as reports detailed embarrassing security lapses, with experts noting it as a cautionary tale for vendor management.Key facts from reports:
| Aspect | Reported Details | Recommendations |
|---|---|---|
| Incident Cause | Helpdesk agents reset passwords for imposters without verification. | Implement multi-factor verification for support requests; audit vendor processes. |
| Damages | $380M total ($50M remediation, $330M lost revenue); operational disruptions. | Conduct regular penetration tests on third-party access; include indemnity clauses in contracts. |
| Legal Action | Suit filed July 22, 2025; claims gross negligence and breach of contract. | Review vendor SLAs for cybersecurity standards; prepare for similar litigation risks. |
| Threat Type | Social engineering via vendor helpdesk (insider-enabled external attack). | Train staff on phishing/impersonation; use zero-trust for credential resets. |