Will data breach concerns tank Forever 21’s holiday?
It’s said that retail is detail. If that’s the case, many of Forever 21’s customers may find the chain’s terse announcement concerning a potential breach of its point of sale systems less than satisfying.
The chain announced yesterday that hackers may have gained access to payment systems, potentially putting customers’ credit card information at risk. The intrusion, it said, appears limited to “only certain point of sale devices” in “certain” stores.
Forever 21, which said the breach occurred from March to last month, was notified of a potential problem by a third party. The hackers, it appears, were able to gain access through point of sale systems that were not encrypted. Forever 21 has hired an investigative firm to get to the bottom of the issue.
The chain suggested customers monitor their statements to see if any unauthorized charges were made to their cards. It advised customers to immediately notify their banks if any such charges appeared, while also informing them that they would not be liable for illegal purchases.
“We regret that this incident occurred and apologize for any inconvenience,” the chain said in its statement. “We will continue to work to address this matter.” Customers seeking more information were directed to visit www.forever21.com/protecting_our_customers.
The hack at Forever 21, according to a Wall Street Journal report, is another in a line of breaches that have recently affected a wide variety of businesses, including Equifax, Sonic and Whole Foods.
- Notice of Payment Card Security Incident – Forever 21
- Retail Chain Forever 21 Warns of Data Breach – The Wall Street Journal
DISCUSSION QUESTIONS: Will Forever 21’s data breach news negatively affect its business or have consumers tuned out such notices from retailers? Do any elements of the Forever 21 announcement give you pause as someone who works in the industry?