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Shopify Says 'Rogue' Employees Breached Merchant Data

Shopify says two service-team members planned to steal customer-transaction records from about 200 merchants.
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Shopify  (SHOP) - Get Shopify, Inc. Class A Report said that data from fewer than 200 merchants were likely exposed after two employees tried to steal customer-transaction records. 

The Ottawa company said that two "rogue members" of its support team planned to obtain the records from certain merchants. Upon learning of the plan, Shopify says it immediately terminated the employees' access to its network. 

The company said the breach did not result from a technical vulnerability on its platform.

The data include contact info like emails, names and addresses as well as order details and services purchased. 

The company says that it is working with the Federal Bureau of Investigation and other international agencies in the investigation.

Shopify also says that while there is no evidence of the stolen data having been utilized, the investigation is still in its early stages. 

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"Our teams have been in close communication with affected merchants to help them navigate this issue and address any of their concerns," the company said in a statement. ... 

"We have zero tolerance for platform abuse and will take action to preserve the confidence of our community and the integrity of our product." 

Shopify shares at last check were off 1.1% near $944. 

Last month, analysts at Atlantic Equities initiated Shopify with an overweight rating and $1,150 price target. 

"Shopify is also significantly undermonetized, with product extensions, such as fulfillment, providing a significant upside opportunity," Atlantic Equities said. 

"The stock’s valuation is the key hurdle, but the total addressable market is vast."