Poshmark Suffers a Data Breach

Another retailer has fallen victim to hackers. Online fashion marketplace Poshmark said hackers targeted its system and used stolen usernames and passwords to drain funds from some of its user accounts within the last few days. MarketWatch reports the California-based company said several hundred active accounts were compromised. Poshmark plans to reimburse anyone who was affected. The online retailer also stated there was no breach of its computer systems, but the attackers were most likely using usernames and passwords from other websites to hack into accounts. 

Total Retail's Take: Unfortunately, the six-year-old startup is just the latest victim of a hacking attack. Retailers such as Target, Neiman Marcus, Eddie Bauer and others have all had to deal with the consequences of a data breach. On average, the cost of a breach has risen to $4 million per incident. In addition to the financial hit, perhaps more damaging to retailers that have been victims of a data breach is the loss of consumer trust in the brand. While companies have taken steps towards stronger data security systems, such as installing point-of-sale systems with chip readers, there's still a long way to go.