Hackers are on the loose these days as the well – known handbag maker claims that the perpetrators had disrupted the operation of many of its stores resulting in its delay to update their website. Vera Bradley Inc. allegedly accused these computer jocks of invading the company’s payment processing system to access customer data which contributed to the delay. The handbag maker feared that this could possibly impair their sales growth in the holidays.
The company explains that these techies may have begun sneaking into the system since July 25 until September 23. They tampered sensitive customer information such as account numbers, names, dates of expiration of the card as well as CVV’s.
Vera Bradley has over one hundred stores and close to fifty factory outlets counted by the end of July. Hence, the company anticipates a huge impact on its sales growth by the end of the year which will close in January. The company is concerned that there might be a significant drop in their sales because of this incident.
However, the material impact on earnings – per – share for either the quarter or the entire year is yet unlikely to take place.
Julia Bentley is the spokesperson for Vera Bradley Inc. She said in her correspondence that they are unable to provide the exact number of affected customer information. Those cards used to at checkout on the company’s website had been spared from the attack, she said.
The FBI had already been alerted of this alleged data security breach. The complaint was made by Vera Bradley Inc on September 15.
In a private investigation conducted by the company’s management, it was discovered that the suspected criminals installed malware into their system. This program enabled the crooks to steal customer’s data stored on the customer’s card.
Vera Bradley Inc took the initiative to respond to the crime. In fact, they were able to stop the breach with the employment of FireEye Inc, a private cybersecurity firm. It had helped improve the company’s data security.
The management at Vera Bradley Inc had suspended the website upgrade to give way for the improvement of the security of their system. The shall be relaunching the site in the first quarter of 2017.
Vera Bradley hopes to get insurance coverage for the expenses incurred with the breach. However, the company did not provide an estimate of their expenses related to the hack.
The Vera Bradley Inc hacking incident is just one of the many hacking incidents involving payment processing systems this year. Wendy’s Co, a famous burger chain in the United States, also had reported the same case in July. A malware had been allegedly infused into their system stealing important customer information affecting 1,025 of its franchised outlets nationwide.
Vera Bradley had reported a 0.2 percent drop in stock market shares during the afternoon trading.