business

eBay responds to claims that security breach has impacted its vendors

June 28, 2014 at 6:41 AM ET

Robin Ramsden was running a successful business from her home, selling and shipping cut glass and sodering irons all over the world, with much of the business done via eBay. But the 56-year-old from Colorado told TODAY that after the site reported a security breach and advised users to change their passwords, her sales nosedived.

Ramsden believes that online buyers are staying away from eBay due to worries of the security breach.

EBay said in a statement to TODAY:

So far this year, Cornerstone Stained Glass Supplies is growing on eBay compared to the prior year, and recent sales patterns are generally in line with the prior year. We have discussed this directly with owner Robin Ramsden. And we have offered to work directly with Ms. Ramsden to help her continue to grow her business on eBay.

With our financial quarter about to end, we cannot comment on the overall performance of eBay; we expect to report overall results on July 16. However, we’re pleased to see that the recent cyberattack on eBay did not impact Ms. Ramsden’s business.

We have worked hard to mitigate the impact to all eBay sellers and to minimize any inconvenience to eBay customers. Following the recent cyberattack, eBay implemented a new authentication process that requires all users to reset their password. While this one-time step introduced some friction for buyers and sellers and temporarily disrupted our normal marketing activities, we felt this was an important and necessary action to ensure a safe and trusted marketplace. We have subsequently implemented additional marketing activities, including offering incentives for buyers and sellers in response to any inconvenience created by the password reset. Tens of millions of buyers and sellers have already reset their passwords, and millions continue to actively transact on the site every day.

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