Security firm: Retailer fraud losses should act as warning

Businesses are risking reputation damage where they fail to guard against external and internal security threats.

U.K. retailer Next has admitted its Next Directory online and catalogue business has suffered fraud losses of several million pounds in the first half of the year.

And the news has prompted security firms to warn that businesses are risking reputation damage where they fail to guard against external and internal security threats.

Chief executive Simon Wolfson said Next had suffered "significant fraud' that could be as much as £6 million (AU$14.5 million) in six months.

He said there had until recently been "several loopholes in the way we allowed customers credit" that the clothes and home ware retailer had now taken steps to close.

According to unconfirmed reports identity fraud was a key problem experienced by the retailer, with fraudsters found to be taking control of other customers' accounts or setting up bogus accounts.

Next has tightened its credit controls in response to the problem.

But Greg Day, security analyst at McAfee, said Next's problems were "a graphic example of how a breach in information security can impact both a business and its customers."

He said the attacks should act as a warning to others that regulatory compliance now meant that companies were increasingly responsible for the direct and indirect costs of lost information, and any damage to reputation or loss of brand value that might arise.

Join the PC World newsletter!

Error: Please check your email address.

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Computerworld UK staff

Computerworld UK
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

GGG Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?