Forever 21 issued a 보도 자료 informing customers of a data breach that occurred at several of its point-of-sale (POS) terminals, leaving some customers’ credit card numbers, expiration dates, and internal verification codes exposed to hackers.
This statement follows the retailer’s initial 발표 in November when it first discovered that it might have been exposed to hackers. The hackers — who carried out the breach at various store locations from April to November — installed malware on some POS devices that compromised the encryption technology the retailer had been using to secure its transactions. The press release didn’t specify which retail locations were affected by the breach, but stated that its website wasn’t compromised.
Merchants should prioritize security efforts to prevent major losses that can result from data breaches.
- Breaches can hinder consumer trust in the long term. This breach occurred over the course of seven months, which could significantly damage consumers’ trust in the retailer. Nineteen percent of consumers would stop shopping at a breached retailer, and 33% would take a long-term break, 따라 to a study from KPMG. And given the size of the company — Forever 21 saw $4 billion in revenue in 2016 — that lack of trust could result in substantial losses.
- It’s imperative for retailers to invest in security offerings. A record-breaking 15.4 million US consumers were affected by identity fraud in 2016, marking a 16% annual increase, according to Javelin. With massive data breaches, like 이퀴 팩스, negatively impacting consumer trust, it’s critical for companies to remain vigilant in detecting, resolving, and immediately informing consumers of data breaches. As the threat of fraud grows, payments firms and retailers need to prioritize security investments — like multi-factor authentication and EMV terminals — to keep ahead of data breaches.