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Shein: parent company of fast fashion brand to pay New York State $1.9 million over data breach

The owner of fast fashion brand Shein has been ordered to pay New York State $1.9 million over a data breach that affected millions of customers.

Zoetop Business Company, Ltd – which owns the Shein and Romwe e-commerce brands – failed to properly handle a 2018 data breach in which the personal information of 39 million Shein accounts and seven million Romwe accounts were breached. been compromised, New York Attorney General Letitia James said. Wednesday.

An investigation by the Attorney General’s Office revealed that hackers managed to steal credit card information and personal information, including names, email addresses and account passwords from Shein customers.

After Zoetop learned of the hack, the company “failed to take adequate steps” to protect many affected accounts and “minimized the extent of the cyberattack” to shoppers, according to the OAG. For the 39 million Shein accounts affected by the data breach, Zoetop did not alert customers whose login credentials had been stolen. The company has also been accused of “misrepresenting” the size and scope of the breach in several public statements to its customers.

Two years later, Zoetop reportedly uncovered Romwe customer login credentials available on the dark web believed to be from the 2018 cyberattack.

“Shein and Romwe’s weak digital security measures made it easy for hackers to steal consumers’ personal data,” James said. “As New Yorkers searched for the latest trends on Shein and Romwe, their personal data was stolen and Zoetop attempted to cover it up. Failing to protect consumers’ personal data and lying about it is not fashionable .

“Shein and Romwe need to strengthen their cybersecurity measures to protect consumers against fraud and identity theft,” she continued. “This agreement should send a clear warning to businesses that they need to strengthen their digital security measures and be transparent with consumers, nothing less will be tolerated.”

As a result of the investigation, Zoetop was ordered to pay $1.9 million in fines to the state of New York and must strengthen its cybersecurity measures to protect consumer information.

Chinese fast fashion brand Shein has become known for its inexpensive and plentiful clothing options, and is now valued at $100 billion. The e-commerce brand has been at the center of much controversy since its inception in 2008 and faces accusations of exploiting workers, stealing ideas from freelance designers and contributing to environmental damage caused by the construction industry. fast mode.

The Independent has contacted Zoetop Business Company, Ltd for comment.

Hazel J. Edmonds

The author Hazel J. Edmonds