With the technology hype, where it has given so many advantages, it also comes with a baggage of disadvantages. Major one being the threat against security and privacy. Day to day, many companies have fallen prey to this fraud and recently a fraud was revealed at the women’s retailer Bebe (NASDAQ:BEBE), where Customer’s credit card data has been stolen. This breach was discovered by banks where they noticed a pattern of fraudulent charges on cards that have made legitimate payments at a Bebe (NASDAQ:BEBE) store. After confirming the sources, Bebe (NASDAQ:BEBE) made a public announcement confirming the breach. They told consumers, that the card numbers have been stolen in the days between November 8th and November 26th. The breach only affected one store out of the 200 retail outlets Bebe (NASDAQ:BEBE) operates in United States, Puerto Rico and US Virgin Islands. The breach also didn’t effect purchases made through the website, mobile site and mobile app as well as none of the Canadian or international stores.
According to statement made by Brian Krebs of website Krebs on Security, the stolen data is being recycled to make new fraudulent cards. A cybercrime shop called goodshopbiz is handling these cards and selling them as of from December 1st and it sells thousands of cards at the price of $10 to $27 per card.
This transaction works in a way in which the shops don’t really sell the card itself but the data acquired from the card. This data can be encoded on a magnetic strip of a counterfeit card. Then the card can be used to make purchases anywhere without hesitation.
Krebs also outlined the easiest and most convenient way in which these breeches are taking place. The thieves steal the card through hacking into cash registers and placing malware that scans and reads the credit card’s magnet strip and steals the data. Similar were the cases at Target Corp (NYSE:TGT) last year and then at Home Depot Inc. (NYSE:HD) beginning of the year.
According to CEO Jim Wiggett, the company’s relationship with its customers are of high importance hence immediate measures are taken to block this attack and further enhance security measure. As a response, the company is offering free credit monitoring services for one year to all the customers effected by the incident. This doesn’t help the customers to block the fraud on existing account, for that customers need to be vigilant and keep a close eye on their bank statements.
Companies need to come up with transparent and effective methods to fight off such thieves, as well as taking the required security measures. Such incidents decrease purchase rate and tarnish company repute, which might take years to build. And some are even forced to build customer trust from scratch. It could be a long road for many companies.
Bebe (NASDAQ:BEBE) stock’s closed at $2.73 on Thursday, which was a fall of 0.4% in a 52 week range of $2.00 to $7.03. Shares were also inactive on Friday’s premarket trading.