binarypublish
- Shares of VF Corp, the parent company of brands like The North Face and Vans, plunged after it reported a significant cyberattack that could impact its business operation and holiday fulfillment.
- The attack, marked by encrypted systems and stolen personal data, is expected to have a material effect on VF Corp’s business and has already impacted its ability to fulfill orders.
VF Corp. announced the cyberattack as the U.S. Securities and Exchange Commission’s new cyber disclosure rules took effect, requiring companies to report material cybersecurity incidents to their investors within four days once determined that the hack could affect their bottom line. VF Corp had identified the cyber intrusion on December 13, indicating a swift classification of the event as a material threat to their operations.
This incident glaringly reveals the vulnerabilities major companies face against cyberattacks which can disrupt operations significantly.
Such disruptions are particularly critical during peak shopping times like the holiday season, affecting both the company’s revenues and customer trust. Although VF Corp stressed that customers can still place orders online, the complete extent of the attack remains undetermined, with the company expecting continuous material impacts until recovery efforts are realized.
The implementation of new SEC rules offers better transparency about cyberattacks’ potential harm to businesses, possibly prompting earlier disclosures of such occurrences. This could lead to more proactive measures against such threats and increased accountability for preventative cybersecurity actions. However, despite discouragement from regulators and law enforcement, companies often resort to paying ransoms due to the crippling effects of cyber disruptions.
VF Corp’s recent experience underscores the escalating issue of cybersecurity in the business sector, joining the ranks of other major companies such as Caesars Entertainment, MGM Resorts, and Clorox that have suffered similar disruptions due to cyberattacks.
