Macy's data breach affects sales

Macy's has said that they suffered a data breach three months ago, which resulted in some customers information being compromised and lead to a slump in sales. The news was reported by Bloomberg.

“We are aware of a highly sophisticated and targeted data security incident related to macys.com that affected a small number of customers during a one-week period in October,” the company said in an emailed statement to Bloomberg.

Macy's fell a staggering 11 percent, making it the second biggest fall behind Kohl's which fell 19 percent after disappointing financial results. Wall Street is concerned this a sign that department stores are continuing to lose their luster, and Macy's should be concerned that this hack could affect their sales this upcoming holiday season, which is a pivotal time for the retailer.

Macy's reports their earnings tomorrow, and has said that they hired an outside firm to handle the breach, and sent out emails warning customers of the potential their credit card information was stolen. They have since resolved the issue.

As customers to continue to move online, retailers need to move to enhance their cyber security. Hackers and their tactics continue to evolve, and retail is seen as the number one target for accessing people's private information from credit cards to addresses. Retailers need to update their cyber security features, many of which happen to be dated, and even those who have newer software have to constantly monitor and review their techniques to ensure there's no weak points in the system. In an increasingly digital world we all need to guard our data from hackers.

photo: via Macy's Inc. Press Room