Personal Data Stolen, No Payment Details Compromised
- M&S insurance payout could reach £100m after cyber attack
- Personal customer data stolen in the attack
- No payment details or account passwords compromised
- Allianz and Beazley to cover losses
- M&S cyber insurance policy pays out up to £100m for breaches
- Retailer’s annual insurance premium may double if risk management practices not improved
Mark & Spencer (M&S) is set to file an insurance claim worth up to £100 million following a cyber attack that resulted in the theft of personal customer data. The retailer confirmed the incident on May 13th and assured customers that payment details, card information, and account passwords were not affected. M&S’s cyber policy allows for claims of up to £100m for both first-party and third-party losses, with Allianz expected to cover at least the first £10 million and Beazley also exposed. The company’s annual insurance premium may double if risk management practices are not improved. M&S, Co-op, and Harrods have recently faced cyber attacks.
Factuality Level: 8
Factuality Justification: The article provides accurate information about the insurance claim process and potential payout following a cyber attack on M&S, as well as details about the involved insurers and possible premium changes. It also mentions related events involving other retailers. However, it could benefit from more context and background information on the cyber attack itself.
Noise Level: 4
Noise Justification: The article provides relevant information about the potential insurance payout for M&S following a cyber attack and its impact on the company’s sales. However, it could benefit from more in-depth analysis of the broader implications of such incidents and the steps companies can take to prevent them.
Financial Relevance: Yes
Financial Markets Impacted: Yes
Financial Rating Justification: The article discusses the financial implications of a cyber attack on M&S and its insurance payout, which could be worth up to £100mn. It also mentions the involvement of insurance firms Allianz and Beazley, and the potential impact on M&S’s annual insurance premium. This makes it relevant to financial topics and has an effect on the companies involved.
Presence Of Extreme Event: Yes
Nature Of Extreme Event: Technological Disruption (cyber-attacks)
Impact Rating Of The Extreme Event: Moderate
Extreme Rating Justification: The cyber attack caused personal data theft, potentially affecting customer trust and could lead to financial losses for the company. The insurance payout is significant, but there are no reports of major infrastructure damage or long-term consequences.
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