Victoria's Secret Takes Down Website Amid Security Incident
Shares of Victoria's Secret plummeted on Wednesday after the lingerie giant took down its US website, citing a prolonged "security incident" that left shoppers staring at a black screen.
The company has "identified and are taking steps to address a security incident," according to a statement posted to its website. The usual online shopping experience was replaced by an ominous message: "We have taken down our website and some in-store services as a precaution." While the physical retail stores remain open, revenue from online shopping is crucial for Victoria's Secret.
Online sales accounted for roughly a third of the brand's annual sales in 2024, generating $2 billion in net sales through direct channels. The company's reliance on e-commerce is a double-edged sword: it provides a significant source of income but also makes it vulnerable to cyber threats.
"Hackers are getting increasingly sophisticated thanks to artificial intelligence," warned Richard Blech, CEO of AI security firm XSOC Corp., in an interview with CNN. "And many retailers may not be prepared for such attacks since they usually outsource cybersecurity to third-party organizations managing multiple accounts." He cautioned that hackers have become "well-resourced" and are pushing the limits of digital trust.
Attacking unprepared retailers seems to be a new trend for sophisticated hackers, according to Blech. The incident has sparked FBI intelligence briefings, as hackers associated with a notorious cybercriminal group targeted US retail companies this month. Marks & Spencer, a UK-based retailer, was severely affected by the hacking, which is expected to cost the company £300 million in lost operating profits and disruptions until July.
Blech predicted that Victoria's Secret's hack could follow a similar trajectory. "The intensity of Victoria's Secret's attack could be significant," he said, citing the company's digital presence as a potential target.
The outage has been ongoing since at least Monday, according to reports from Bloomberg and social media. The incident comes on the heels of Victoria's Secret CEO Hillary Super's appointment last year, which aimed to revitalize the brand amidst declining demand. However, the company still faces stiff competition from digital-first ventures like Rihanna's Savage X Fenty.
A Growing Concern for Retailers
The rise of sophisticated hackers has left retailers on high alert. With the increasing sophistication of AI-powered attacks, companies are struggling to keep pace with the evolving threat landscape. As Blech noted, "Hackers are ahead of the game and well-resourced." This trend is likely to continue, making it crucial for retailers to reassess their cybersecurity strategies.
As Victoria's Secret struggles to recover from its website outage, the incident serves as a stark reminder of the importance of robust cybersecurity measures. With online shopping becoming an indispensable part of retail operations, companies must prioritize digital trust and security to avoid similar incidents in the future.
A Call for Greater Cybersecurity Awareness
As retailers continue to grapple with the threat of sophisticated hackers, it's essential to raise awareness about cybersecurity best practices. Companies must invest in robust security measures, including employee training and regular software updates, to protect themselves against potential attacks.
"It's a critical failure in digital trust," Blech emphasized, as companies like Victoria's Secret struggle to regain the confidence of their customers and investors. By taking proactive steps to address cybersecurity concerns, retailers can mitigate the risk of future hacks and ensure the long-term sustainability of their online presence.