TLDR
- Levi Strauss disclosed a cybersecurity breach involving a social engineering attack on three employees
- An unauthorized third party gained access to company systems and extracted corporate information
- No consumer data was impacted and business operations have not been disrupted
- Levi does not expect a material impact on its operations or financial results
- Cybercriminals have targeted over 200 companies in the past five weeks using similar tactics
Levi Strauss stock edged lower in pre-market trading on Friday after the company disclosed a cybersecurity breach in a regulatory filing.
An unauthorized third party gained access to the company’s systems through a social engineering attack that targeted three employees. The attackers used psychological manipulation, rather than technical hacking, to gain access to company-issued computers.
Social engineering relies on human emotions like trust to trick people into handing over passwords or sensitive data through emails, texts, or phone calls.
Levi said it initiated response protocols, implemented containment measures, and brought in third-party cybersecurity experts to investigate. The investigation is ongoing.
Based on preliminary findings, the company confirmed that certain corporate information was accessed and extracted. However, Levi believes its rapid response successfully shut down the unauthorized access.
The company was clear that no consumer data was impacted by the incident.
No Hit to the Bottom Line
Levi stressed the breach has not disrupted its business operations. It does not expect a material impact on its financial results.
That is likely some relief to investors who had just seen the company raise its annual net sales forecast last month. Levi had expressed confidence that demand for its premium denim products would stay strong among higher-income consumers.
Levi Joins a Growing List of Targets
Levi is not alone. Data from Google and internet intelligence sources reviewed by Reuters shows ransom-seeking hackers using phone calls to compromise victims have targeted dozens of prominent U.S. financial institutions and businesses over the past month.
Cybercriminals created digital traps for more than 200 companies in the past five weeks. Levi Strauss was among them.
The attackers rely on phone-based social engineering, a method that has seen a sharp rise in use against major corporations.
On TipRanks, LEVI currently holds a Strong Buy consensus rating based on 9 Buy ratings and 3 Hold ratings.
The stock’s consensus price target stands at $28.17, with the highest analyst target set at $34, implying upside of around 15.91% from current levels.
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