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 newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
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


James Cook University - Master of Data Science Online Course

Learn more >


Sansai 6-Outlet Power Board + 4-Port USB Charging Station

Learn more >



Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?