EMudhra exits global SSL/TLS certificate business after vulnerability disclosure

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EMudhra exits SSL/TLS business

Highlights

eMudhra voluntarily exits the global SSL/TLS certificate business after vulnerabilities are discovered in several certificates it issued and India's Computer Emergency Response Team flags compromised intermediates.
Major browsers Google, Mozilla, Apple, and Microsoft block digital certificates issued by eMudhra, impacting clients such as Infosys, TCS, and India's income tax portal.
eMudhra states the global SSL/TLS certificate segment represents 1% of revenue, while its shares drop 40% in two days following the vulnerability disclosure.

Vulnerability response and business withdrawal

As reported by Reuters, eMudhra says it is voluntarily withdrawing from the global SSL/TLS certificate business after vulnerabilities are found in several certificates it issued for websites, software and online communications.

An independent cybersecurity researcher found over the weekend that several key certificates issued by the company were weak and vulnerable to attack. On Wednesday, India's Computer Emergency Response Team also issues an advisory saying some of eMudhra's intermediate certificates are compromised.

In a statement on Wednesday, eMudhra says it withdraws eight certificates it issued, while maintaining that its infrastructure is not compromised and that no data is breached. SSL and TLS are protocols used to secure data sent between web browsers and servers, helping protect private information from interception.

Market fallout and cybersecurity implications

The vulnerability disclosure leads major internet browser companies including Google, Mozilla, Apple and Microsoft to block digital certificates issued by eMudhra. The episode also raises broader concerns among cybersecurity professionals about internet security and privacy.

eMudhra issues certificates to digital businesses and government agencies, including some online public services such as India's income tax portal. Its customer base also includes Indian IT services companies Infosys and TCS.

The company says social media attention around the incident brings scrutiny that is disproportionate to the significance of the business line. eMudhra adds that the global SSL/TLS certificate segment contributes 1% of its revenue, while its shares fall 40% in the two days after the vulnerability is disclosed.

In our earlier article on CTOS Digital’s cybersecurity incident, we covered the company’s estimate that the breach and resulting service disruptions could cut net profit by RM12 million and revenue by RM16 million if some services stayed offline into the third week of October. We also noted that each additional week of disruption could further pressure earnings and complicate efforts to restore customer confidence, even as some analysts remained cautiously constructive at the time.

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