Tesco has had a lot of bad press recently and is currently struggling to regain its previous high standing.
The most recent setback was the cybercrime attack at the beginning of November that resulted in Tesco having to pay back losses of £2.5 million to more than 9000 affected customers.
The money was apparently stolen by a large-scale criminal gang that purchased thousands of low-price goods using the contactless mobile phone payment system across Brazil and the USA.
It is reported that Tesco knew of the weakness in their mobile banking apps that made them vulnerable to attack, and there are reports that they were subject to smaller-scale assaults just months before the large-scale hit. Should Tesco have done more to prevent this? Yes! Did Tesco deal with it promptly and efficiently? Yes! As soon as the attack hit, Tesco contacted its customers to reassure them that, whilst they had been left vulnerable, Tesco would rectify the situation and all monies lost would be compensated by the company.
If a large organisation such as Tesco cannot protect its own and its customers’ assets then it is in dire straits and will need to perform outstandingly to regain its previous status. Tesco has definitely lost the confidence of many of its customers and, with its share price dropping, many shareholders are making a swift exit to avoid substantial losses.