The New Zealand Herald

Kathmandu cops it after hack

Sluggish reveal of website breach cost us, say customers

- Aimee Shaw

More people have come forward claiming fraudulent activity on their credit cards following retailer Kathmandu’s month-long website data breach.

Property finance consultant Garrick Wynne says $10,000 was spent fraudulent­ly on his credit card at a US sporting goods retailer — around a month after he made a purchase on Kathmandu’s website.

Wynne was notified by his bank around one month before Kathmandu began sending out emails to customers, notifying them about its data breach and to change their passwords.

When he was first contacted by Kiwibank he did not think much about it.

“I rang the bank after a week or so and asked what was going on, just thinking I was over my limit or something, and they said ‘Oh no, your card has been stopped because there was some [suspicious] transactio­ns put through,” he said.

He does not understand why it took Kathmandu a month to notify customers that its website had been compromise­d between January 8 and February 12.

He emailed Kathmandu on the same day he received acknowledg­ement of the breach, voicing his thoughts on the situation. He also floated the idea of compensati­on but has not heard back from the retailer.

“Kathmandu hasn’t accepted much responsibi­lity for the huge amount of stress and inconvenie­nce they’ve caused people. They’ve now gone dumb-silent and it took them so long to notify there was a breach.”

Wayne is not alone in reporting suspicious activity on his credit card linked to purchases made on Kathmandu’s website in the past two months.

Since the Herald ran a story last week on another Aucklander who had $2500 spent fraudulent­ly on his credit card and another transactio­n blocked after shopping on Kathmandu’s site, four other people have related similar stories.

One man said he had a $6000 luxury hotel bill and $3000 in luxury items in America slapped on his credit card after he shopped with Kathmandu during the time of its website hack.

“I tried to contact Kathmandu but they made it very difficult and just gave a link to an IT security advisory agency and me being an ex-IT manager, I thought they were pretty poor,” he said. “Kathmandu will not get any more of my business as they only just notified customers [one month later], an absolute disgrace.”

A woman who contacted the Herald said multiple suspicious transactio­ns on her card had been reversed, and another man who wished to remain anonymous said it was not good enough that Kathmandu took so long to notify shoppers about the hack.

The man made a purchase from Kathmandu on January 12 and on March 3 noticed a $580 transactio­n made on his card, through travel booking site gotogate.co.nz, a site he was unfamiliar with. The transactio­n was not able to be reversed, he said.

“If Kathmandu had been quicker off the mark at advising people to block their credit cards, I wouldn’t have been ripped off. Even more annoying — since I’ll probably never get my money back — is the other personal informatio­n the hacker’s got hold of.”

A Kathmandu spokesman told the Herald the company had notified customers as soon as it could. It said unauthoris­ed activity on its site ceased when Kathmandu upgraded to the latest version of Magento Enterprise Edition protection software.

In a statement, Kathmandu said it was satisfied it had “identified all potentiall­y affected customers” and taken steps to directly contact the individual­s.

“Kathmandu has worked as quickly as possible to identify which customers had been potentiall­y impacted by the incident. Kathmandu provided notice as soon as it was reasonably able to provide clear and concise guidance and support.”

It would not compensate those affected, the spokesman said.

 ??  ?? People potentiall­y affected were alerted as soon as possible, says Kathmandu.
People potentiall­y affected were alerted as soon as possible, says Kathmandu.

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