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The owner of the fast fashion brand Sheen has been ordered to pay $1.9m to the state of New York for a data breach involving millions of customers.
Zoetop Business Company, Ltd., the owner of e-commerce brands, failed to properly handle the 2018 data breach in which the personal information of 39 million Shane accounts and seven million Romwe accounts were compromised, New York Attorney General Letitia James announced. Wednesday.
According to an investigation by the Attorney General’s Office, the hackers successfully stole credit card information and personal information including names, email addresses and account passwords of Shane’s customers.
After Zotope learned of the hack, the company “failed to take adequate measures” to protect the many affected accounts and “underestimated the extent of the cyberattack to consumers,” the OAG reported. For the 39 million Shane accounts affected by the data breach, Zotope failed to alert customers whose login credentials had been stolen. The company has been accused of “misrepresenting” the size and scope of the breach in several public statements to its customers.
Two years later, Zotope reportedly found Romwe client login credentials on the dark web in what is believed to be a 2018 cyber attack.
“Shin and Romwe’s poor digital security measures made it easy for hackers to steal users’ personal information from the store,” James said. “While New Yorkers were shopping for the latest trends at Shayne and Romwe, their personal information was stolen and Zotope tried to cover it up. Failing to protect consumers’ personal information and lying about it is unacceptable.”
“Shane and Romwe must step up their cybersecurity measures to protect consumers from fraud and identity theft,” she continued. “This agreement should send a clear warning that companies must strengthen digital security measures and be transparent with consumers, nothing less will be tolerated.”
As a result of the investigation, Zotope was ordered to pay a $1.9 million fine to the state of New York and must strengthen its cybersecurity measures to protect users’ information.
Chinese fast fashion brand SHIN, known for its affordable and plentiful clothing options, is now worth $100 billion. E-commerce brand
The independent Contacted Zoetop Business Company, Ltd for comment.
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