The fashion world’s hottest trend? Getting hacked.
Driving the news: So far this week, retailers Cartier and The North Face both reported cyberattacks that exposed customer data. They join a growing list of brands, including Adidas, Dior, and Victoria's Secret, that have also reported hacks over the past month.
Why it’s happening: Fashion retailers have become relatively easy targets. Many of them rely on outdated tech and store large amounts of valuable customer data. And unlike a bank or government agency, cybersecurity isn’t a top priority for a company that sells shoes.
- The damage from these attacks can add up. U.K. retailer Marks & Spencer said a breach in April could end up costing it over US$400 million in lost profits.
Why it matters: These cyberattacks often involve stolen names, email addresses, and, in some cases, payment details of customers. Once that info is stolen, it can be sold on the dark web or used for other scams and fraud.
- Take The North Face, for example. Since 2020, it's had four credential stuffing incidents — a type of attack where hackers use stolen usernames and passwords from other breaches to break into accounts of customers who reuse login details.
Bottom line: Retailers may not be holding government secrets or social security numbers, but in the age of loyalty accounts and e-commerce, they’ve got a lot of personal info. And right now, they’re not doing a great job protecting it.—LA