A review by vpnMentor tracking 25 years of corporate scandals has revealed how fraud, data misuse, and regulatory violations have reshaped business operations and risk management strategies.
The study examined 58 companies entangled in major scandals, outlining which organisations collapsed and which adapted to survive.
Among those that shut down were Lehman Brothers, Cambridge Analytica, FTX, Sino-Forest, and Nikola Corporation.
Lehman Brothers’ bankruptcy in 2008 remains the largest in US history, triggered by exposure to failing mortgage-backed securities.
Cambridge Analytica closed operations after revelations that it improperly collected Facebook user data, while FTX filed for bankruptcy amid accusations of misusing customer funds.
Other companies, such as Wirecard and Financial Advisory Consultants, ceased operations after allegations of accounting fraud and Ponzi schemes. Countrywide Financial, a key player in the subprime mortgage crisis, was absorbed by Bank of America.
Despite significant fallout, vpnMentor found that the majority – 41 companies – continued to operate following their scandals:
“Interestingly, some of these companies – such as Johnson & Johnson, Herbalife, and Monsanto – reached their highest stock price sometime after the scandal broke out, suggesting that they managed to fully overcome the setback,” vpnMentor said.
The analysis also indicated that some businesses faced minimal disruption from allegations.
PayPal’s Honey extension and Google’s AdSense program, while criticised, experienced limited financial impact.
These findings coincide with growing concern about operational risks globally. The Allianz Commercial Risk Barometer for 2025 identified cyber incidents as the most significant business risk for the fourth consecutive year.
Based on a survey of 3,778 executives across 106 countries, the Allianz report found that 38% of respondents ranked cyber risks – including breaches and ransomware attacks – as their top concern.
Business interruption was ranked as the second most pressing concern, often stemming from cyberattacks, natural disasters, and supply chain disruptions. Allianz highlighted the 2024 collapse of the Francis Scott Key Bridge and disruptions in the Red Sea shipping lanes as examples.
Natural catastrophes placed third in the Allianz rankings, reflecting another year of extreme weather events and significant insured losses surpassing $100 billion. Climate change concerns moved into the fifth position, reaching the highest level recorded in the Risk Barometer’s 14-year history.
Regulatory and legislative changes ranked fourth, with an emphasis on rising compliance costs associated with privacy laws, environmental disclosures, and cybersecurity requirements.
