AutoZone, Inc. (AZO), a leading retailer and distributor of automotive replacement parts and accessories in the United States, announced that it was hacked by a ransomware gang in May this year. Bleeping Computer reported that AZO’s data stores were breached, with the personal information of approximately 185,000 customers leaked.

The Clop ransomware gang took responsibility for this cyberattack, with hackers uncovering susceptibilities in the file transfer application MOVEit.

Several other affected organizations include the Louisiana Department of Motor Vehicles, the State of Maine, British Airways, and the New York City public school system. As per the report, the total financial damage totaled around $12 billion, with estimates indicating that at least 62 million people were affected by this data leak.

The data leaked by cybercriminals is around 1.1GB in size, containing employee names, email addresses, tax information, parts supply details, payroll documents, Oracle database files, production and sales information, data about stores, and more. No customer data appears in the leaked files, Bleeping Computer noted.

AutoZone informed the U.S. authorities last week about this data breach. It took the auto company nearly three months to determine what data was stolen from its systems and who had been impacted and required to be notified.

“AutoZone became aware that an unauthorized third party exploited a vulnerability associated with MOVEit and exfiltrated certain data from an AutoZone system that supports the MOVEit application,” read the letter from AZO. The company further added that it is “not aware” of any instances where a customer’s personal information was used to conduct fraud.

However, AutoZone will provide its affected clients with a year of free credit monitoring software. This will allow them to track potential fraud and suspicious activities related to their identity and credit.

Despite this news, AZO’s shares have gained more than 6% over the past month and nearly 5% over the past six months.

Now, let’s discuss several factors that could influence AZO’s performance in the near term:

Growing Need for Auto Parts

The global auto parts market is expected to reach $1.10 trillion by 2030, growing at a CAGR of 6.8%. One of the primary factors driving the auto parts market is the increasing demand for auto vehicles worldwide. Global motor vehicle production has been rising steadily, with around 85 million vehicles produced in 2022, up nearly 6% from 2021.

The demand for auto parts has increased in tandem with this production boom. Further, the growing shift toward electric and hybrid vehicles and the manufacturing of environmentally friendly vehicle parts because of an enhanced focus on sustainability and environmental issues are propelling the market’s expansion.

Additionally, the significant surge in e-commerce platforms has a major impact on auto parts distribution and sales, providing more access for customers. Also, the rising popularity of automotive customization and the introduction of advanced technologies, such as navigation systems, infotainment systems, and advanced driver assistance systems, will boost the market’s growth.

Therefore, the growing demand for auto parts and accessories is a…

Continue reading at INO.com