Shein’s Supply Chain Tech Raises Cybersecurity Concerns for Experts

July 10, 2024
1 min read


TLDR:

  • Shein plans to sell its proprietary supply chain technology to outside companies, raising concerns among cybersecurity experts.
  • Cybersecurity firms and national security experts warn of the potential risks associated with a company with close ties to China spying on supply chains.

Cybersecurity experts are expressing fear over the risks posed by Shein’s supply chain technology. Shein, an Asian fast fashion retailer, intends to sell its proprietary technology to external companies, leading to apprehensions among U.S. cybersecurity firms and national security experts. The experts caution about potential spying on the supply chain by a company closely associated with China as the nation aims to expand its global logistics footprint. Shein’s logistics software is currently under beta testing with select supply chain customers, as per reports from CNBC. These experts and policy analysts emphasize that the supply chain of vendors is continuously evolving, making it easy for malicious actors to access data by targeting the weakest link in a company’s data network. Small companies, in particular, are seen as having more vulnerable back-office systems with weaker cybersecurity protocols. In 2022, Shein relocated its corporate headquarters from China to Singapore, a move criticized as “Singapore washing” to reduce regulatory scrutiny.


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