Earlier this week online retailer Zappos posted a statement on its official website asking all of its 24 million customers to reset their online passwords after the website had been hacked into, according to an article on Cnn.com.
According to an email from Zappos CEO to employees issued last Sunday the company fell victim to a cyber attack by a criminal who gained access to part of Zappos' internal network and systems through one of its servers in Kentucky.
The company also posted that it reset all customer passwords and would promptly send them an email with further instructions. Zappos also posted instructions to reset customer passwords on the website.
Furthermore, Zappos stated that the hackers gained access to customer names, email addresses, billing and shipping addresses, and the last 4 digits of credit card numbers and encrypted passwords.
Fortunately for Zappos and its customers, the full credit card numbers and other payment info were stored on a separate server that was not hacked into.
In fear of an overwhelming volume of calls Zappos has temporarily shut down its phones and will answer all inquiries via email.
This is the largest cyber attack since April of 2011 when 70 million customers had their profiles hacked on Sony's PlayStation Network.
Zappos has been an extremely successful online retailer since it began business over 12 years ago, which is evidenced by over 24 million customers.
However, an incident such as this one could have a lasting effect on both existing and future customers. In today's world where identity theft happens on a daily basis a scare like this may cause customers who have lost faith in Zappos to jump to a new more reliable online retailer.
Although this situation is in its infancy and we are unsure whether any customers have been monetarily affected to date, it is up to Zappos to find a way to restore customer confidence.
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