A Singapore-based brand faced an Amazon account breach that halted operations for seven days, with hackers altering admin emails and attempting to divert $50,000 AUD.
When an Amazon seller account is breached, the fallout can be catastrophic. This was the case for Kebabies, a Singapore-based brand generating $230,000 daily in sales.
Their $78M annual revenue account was hacked, leaving the company powerless for seven days. The hackers exploited security vulnerabilities, causing financial losses and operational chaos.
Such breaches highlight the urgent need for sellers to bolster their cybersecurity measures. With actionable strategies, Amazon sellers can protect their accounts, secure sensitive data, and prevent similar incidents.
Serge Guzenko, IT-company WEZOM, Founder and CEO."Poor cybersecurity is one of the leading causes of losses and reduction of consumer confidence in the e-commerce sector."
Keababies $78M Amazon Account Breach
On January 16, 2025, a major Amazon account breach hit a Singapore-based baby and maternity brand, with daily sales of $230,000 and $78M in annual revenue. Hackers took control of their account, locking out the seller and halting operations for seven days, causing widespread disruption.
The breach started with a suspicious email and mobile OTP request. Hackers altered the admin email and mobile number, bypassing OTP security and gaining full access to the account. They changed banking details and attempted to divert $50,000 AUD. The breach affected multiple marketplaces, including Australia and Europe, and caused the brand’s listings to disappear.
Amazon’s Security Failure
Despite Amazon’s policies, including a three-day hold on bank account changes, the hackers bypassed security measures, manipulating admin access and obstructing recovery efforts. Amazon’s failure to respond promptly left the seller without control for seven days.
Business Impact from Keababies Amazon Account Breach
- Financial Losses – $230,000 in daily sales lost, risking bankruptcy.
- Operational Disruption – Listings suspended, fulfillment stopped, and a rise in customer inquiries.
- Employee Concerns – 80 staff members faced uncertainty about their jobs.
- Brand Damage – Customers were redirected to other platforms, damaging their reputation.
Amazon Account Hacking: A Growing Cybersecurity Concern for Sellers
This breach highlights significant gaps in Amazon’s security protocols, exposing how hackers can exploit vulnerabilities in global user permissions and bypass security measures designed to protect sellers. The incident underscores the importance for Amazon sellers to:
- Remain vigilant: Proactively monitor account activity for suspicious changes or login attempts.
- Implement robust security measures: Utilize multi-factor authentication, strong passwords, and limited user permissions.
- Demand improved security protocols from Amazon: Advocate for stronger protections and clear communication during security breaches.
Other sellers’ experiences from the Seller Central Forum (you must be logged into your seller account to open the links below) illustrate the potential consequences of security lapses:
- Loss of account control and financial loss
A seller lost access to their account due to a hijacked email and phone number. Despite providing proof of ownership, Amazon failed to resolve the issue, causing financial losses and the deactivation of a linked account.
- Financial theft and account deactivation
Hackers infiltrated an account, took $1.1M, and caused the account’s deactivation. The seller faced difficulty contacting Amazon for assistance.
- Account with listings in multiple countries deactivated
After their Amazon account was deactivated, the seller found another account under their login, listing them in 14 countries. They believe their identity was stolen due to a lack of support from Amazon.
Another Alarming Fact About Amazon Seller Cybersecurity
Challenges Exposed by the Incident
- Weak Global User Permissions – Hackers exploited insufficiently restricted permissions to change access details repeatedly.
- Delayed Response Times – Amazon’s recovery efforts failed to secure the account promptly.
- Vulnerability of OTP Systems – Hackers bypassed OTP security, highlighting its limitations.
- Dependency on Amazon – Overreliance on one platform left Kebabies unable to fulfill orders elsewhere.
- Financial and Reputational Damage – Lost revenue, customer trust, and operational disruption posed significant risks.
Impact of the Breach on Keababies
- Financial Losses – $230,000 lost daily, amounting to over $1 million during the breach.
- Operational Shutdown – Storefront and listings became unavailable, halting sales and fulfillment.
- Employee Uncertainty – employees faced job instability as the business teetered on bankruptcy.
- Customer Distrust – Shoppers were redirected to alternative platforms, affecting brand reputation.
Solutions to Protect Your Seller Account
- Set Up 2FA
Use robust OTP management systems to prevent unauthorized access. The video below will show how to enforce this:
Set up a secondary admin account for easier recovery if you’re locked out. Give each user their login with specific permissions to prevent access issues.
- Diversify Operations
Explore multi-channel fulfillment options to ensure continuity during disruptions.
Expand to platforms like Walmart or Shopify to reduce reliance on Amazon. Focus on enhancing product quality and expanding offerings across platforms.
- Work with Amazon Experts
Partner with a full service Amazon agency to strengthen your account’s security.
The video also highlights the importance of staying current with Seller Central UI and policy changes like user permissions updates to enhance account security.
Other ways to stay proactive:
- Regularly review global and admin-level permissions to restrict unauthorized changes.
- Investigate unusual emails or login attempts immediately.
- Stay informed about emerging cybersecurity threats and best practices by following industry news and resources.
