Neiman Marcus Dealt One Final Blow With Data Breach

Nieman Marcus, a beleaguered fashion business that fell from grace after reaching the apex of its industry, was breached by hackers. The online attack occurred just before the company declared bankruptcy. The attack was discovered in the fall of 2021, yet it appears to have occurred several months earlier. 

Neiman Marcus was also breached back in 2014. The outcome of that attack was a sizable payout to compromised customers after they banded together to take legal action. Let's look at the details of the Neiman Marcus attack to shed light on the importance of updating your digital safeguards at least once every six months.

What Information was Stolen in the Attack?

The breach resulted in the loss of credit card numbers, including credit card expiration dates. Hackers took some customers' full names, and certain customers' security question responses were also stolen.

How Many Customers are Impacted?

This breach may result in identity theft, financial fraud, and other forms of crime inflicted on five million Neiman Marcus customer accounts. Neiman Marcus customers' financial payment information was stolen in the attack, setting the stage for digital misfits to run up tens of thousands of dollars of charges.

How did Neiman Marcus Respond to the Attack?

The fashion giant filed for bankruptcy last year. The century-old business owes upwards of $10 billion to more than 50,000 creditors. The company tapped into Mandiant's crew of digital security specialists to analyze the attack and identify the party responsible for the criminal activity. 

The investigation did not reveal the details the company was looking for as it provided little information as to how the threat actor obtained access to the system. Neiman Marcus representatives certainly deserve credit for asking law enforcement and digital security specialists for guidance in the aftermath of this incident. Yet, the lack of prompt communication with customers is noteworthy.

How Many Gift Cards Were Stolen?

The scope of the attack extends to the company's gift cards. In particular, the attack resulted in the theft of more than three million virtual gift and payment cards for compromised customers. Nearly 90% of the virtual gift cards turned out to be invalid or expired. 

It is important to note that none of the Neiman Marcus first-party cards were compromised in the attack. Furthermore, Neiman Marcus representatives went out of their way to note that Horchow and Bergdorf Goodman, two of the company’s subsidiaries, were not affected by the attack. Customers of those two companies can breathe easy.

What can Neiman Marcus Customers Expect Moving Forward?

Neiman Marcus customers are encouraged to closely monitor their credit ratings, financial accounts, credit cards, and other identity/financial-related information. Hackers took some customers' payment card numbers in the attack. Others lost virtual gift card numbers, passwords, usernames, etc. 

The hackers behind the Neiman Marcus breach might also sell access to the information to fellow digital criminals on the dark web, ultimately causing identity theft. Neiman Marcus customers and those interested in additional details about the fashion company's latest data breach are encouraged to find out more here.