Nike confirmed it is investigating a possible data breach that, if verified, could lead to an influx of counterfeit products based on authentic designs. The notorious ransomware gang known as World Leaks claims to have stolen more than 1.4 terabytes of files in the alleged breach, though the good news is that it does not appear as though it made off with any sensitive customer data.
The bad news for Nike, however, is that World Leaks may have hijacked a wealth of product designs and other inside information, such as garment measurements for products, details on materials, item retail prices, product lifecycles, testing reports for clothing, factory audits, corporate slides, and other materials that Nike would prefer kept under lock and key, according to an audit by Cybernews.
Nike Project Amplify (Source: Nike)
While this may seem trivial, Nike these days has expanded its reach from simple sneakers and garments to innovative designs like
robotic shoes (shown above) and
3D-printed kicks, among other things.
"The one thing that appears to be missing from the data sample is employee or customer data. In this case, the impact of the breach would be limited to loss of competitive advantage, increased risk of counterfeit products, and possible supply-chain disruptions," the site's team said.
Data from the alleged breach includes more than 188,000 files dated from 2020 through 2026. The major implication for Nike is that if the stolen data is verified as legitimate, it could lead to more counterfeit products not just on existing designs, but also on apparel and sneaker that have not yet been released.
That's obviously less than ideal, given the massive amount of money companies like Nike spend on research and development to maintain a competitive advantage. In addition to paving the way for counterfeit products, these kinds of leaks could give rivals key access to what kinds of unique designs Nike is planning to release, as well as its overall product strategy.
The bright side for Nike is that it can avoid the potential backlash that can stem from fumbling customer data to hackers.
"We always take consumer privacy and data security very seriously. We are investigation a potential cybersecurity incident and are actively assessing the situation," Nike said in a statement.
This
latest incident also reflects a shift in strategy by World Leaks, which in the past has followed standard ransomware tactics—locking systems and demanding a ransom in exchange for a key to decrypt server-side data. The current strategy, at least based on the Nike breach, is to demand payment under the threat of leaking confidential data.