Data Breach Sinks M&S Shares for a Fourth Week Straight as Company Admits Customer Information Was Stolen
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M&S Cyber Crisis Continues, Plunging Shares and Empty Shelves
Holy smokes, M&S got hit by a major cyber attack that's been causing chaos for the past few weeks now. Their shares dropped like a rock, losing over £1 billion since the attack.
This high-street retailer had to pause online fashion and homeware shopping because of a hack, supposedly orchestrated by a gang of teenage criminals. Some stores look like empty ghost towns as the chaos from the Easter break continues.
M&S has chalked up an estimated £68 million in lost online business due to the attack. Their shares fell a harsh 3.3% last day and are down nearly 16% since the attack. But get this, they added around 1% on Tuesday morning, despite confirming that customer data was indeed in the hands of the cyber miscreants.
On Tuesday, the group confirmed it had sent out letters to customers, informing them that 'some' of their data was nabbed because of the complexity of the attack. Thankfully, the stolen data doesn't include usable payment or card details—they don't keep those on their systems. Nor do account passwords appear to have been pilfered, according to M&S.
Customers don't have to do anything, but M&S plans to press them to reset their passwords the next time they log in.
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The company said, "We've taken steps to safeguard our systems and enlisted top-notch cyber security experts. We've also reported the incident to the relevant authorities and are working closely with them."
"We appreciate the support from our customers, colleagues, partners, and suppliers during this tumultuous time," they added.
Hackers known as DragonForce, though M&S hasn't confirmed this, claim to have swiped the data of millions of customers and are trying to extort a ransom. They also say they breached the Co-op and Harrods[1].
Justin Kuruvilla of UK-based supply chain security specialist Risk Ledger reminds us that it's hard to predict when the website will back online. "M&S must ensure they've left no backdoors open for the attackers to return," he cautioned[1].
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- Despite the ongoing cyber crisis at M&S causing share drops and service disruptions, the company is investing in top-notch cybersecurity experts to safeguard their systems.
- In the wake of the M&S cyber attack, it's crucial for businesses to prioritize cybersecurity measures, especially in the realm of technology and finance.
- As M&S faces the aftermath of a cyber attack, investors might consider diversifying their portfolios to include stocks from companies with robust cybersecurity measures in place.
