Data Security Concerns Raised for ASOS and H&M Following Reported Breach
What happened
ASOS experienced a data breach last Tuesday, which was communicated via an in-app notification stating that ASOS had been "hacked" and its data storage provider, Snowflake Inc., was "fully compromised". Separately, H&M is investigating claims that the same group of hackers targeted it, though H&M has stated that no breach has been found.
From wwd.com
Why it matters
The incidents raise consumer concerns about data security in the retail sector. The reports also mention potential stock drops as shoppers and investors react to the security issues.
From wwd.com
Who's involved
- ASOSBritish online fashion and beauty retailer that suffered the reported data breach.
- H&MSwedish clothing-retail company currently investigating claims of being targeted by the same hackers.
- Snowflake Inc.Cloud-based data-warehousing startup whose platform was compromised by the hackers.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- ASOSSpeculative
ASOS might see customer trust decline, potentially affecting sales.
- Snowflake Inc.Speculative
Snowflake Inc. could face liability risk and material service failure costs.
- H&MSpeculative
H&M may face market uncertainty, potentially impacting investment.
- COSSpeculative
COS could face increased operational costs due to industry-wide data security concerns.