Cyberattacks on fashion giants highlight consumer challenge

Harry Booth

58 minutes ago

Recent cyberattacks on high-profile fashion brands highlight the pressure on consumer trust, with companies’ responses now under the microscope.

The claims by market intelligence firm Global Data come after Asos, H&M and TFG were victims of hacking attacks. The investigations into these are ongoing. 

Each incident saw customers’ data compromised in unexpected breaches. Global Data said hackers are increasingly using AI-driven methods to infiltrate company systems.

On October 6, Asos responded to its attack by issuing mass password resets, a move which unsettled customers. TFG joined Asos in not telling customers which parts of its system had been breached, adding to customer confusion.

Global Data said secrecy from companies is doing more damage to trust than the incidents themselves.

“These vague brand responses to cyberattacks contrast with historical precedents. When Marks & Spencer detected an anomaly exposing customer details last spring, the brand took decisive action to limit the reputational and operational fallout,” added Chloe Tedford-Jones, apparel analyst at GlobalData.

The Marks & Spencer example refers to when the British icon suspended all online transactions, then announced the issue and clarified what was affected.

“Apparel brands and retailers must treat cyberattack disclosure as brand governance, rather than mitigating damage to prevent company liability,” Telford-Jones said. “Brands should quickly explain what is known, who may be affected and the measures being taken to secure accounts and services.

“Proactive and consistent communication is essential to prevent operational disruption and irreparable reputational damage, whilst investment in robust cyber-security is imperative as developments in AI will continue to multiply the threat.”