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An international ransomware attack that began with Florida-based IT company Kaseya won’t raise the full $ 70 million its Russia-affiliated hackers are claiming, Huntress CEO Kyle Hanslovan told CNBC on Tuesday.

“I wouldn’t be surprised if someone paid the ransom to get it closer to $ 40 [million] increased to $ 50 million, “said Hanslovan, whose cybersecurity firm has been helping Kaseya with incident response and disaster recovery since Friday’s security breach.

“With that in mind, I haven’t seen anything to suggest that Kaseya is paying for the universal decryptor, the one that decrypts both its customers and its customers’ customers,” added Hanslovan in a Squawk Box interview.

The REvil hacker gang is publicly demanding $ 70 million in cryptocurrency to unlock data from the attack that spread to hundreds of small and medium-sized businesses in a dozen countries.

Jack Cable of the cybersecurity-focused Krebs Stamos Group told Reuters that one of the group companies had already expressed its willingness in a private conversation to lower the price of a “universal decryptor” to 50 million US dollars. While it can be difficult to determine who is speaking on behalf of the hackers, Cable said his conversations indicated that they “are definitely not hanging on to their $ 70 million bid”.

Fred Voccola, CEO of Kaseya, said Monday that between 800 and 1,500 companies were affected by the attack, with the effects expected to continue on Tuesday when people return to the office after the July 4th weekend.

“My guess would be [that the] Total number of companies, and from what we’ve seen, the hackers don’t have a feedback loop on how many people were compromised, “said Hanslovan, adding that the hackers’ claims of infecting 1 million systems were simply” bragging rights “.

Cyber ​​security experts said the gang targeted software provider Kaseya with its network management package to spread the ransomware through cloud service providers. The injury caused hundreds of Co-op grocery stores in Sweden to temporarily close after the checkouts were blocked. More than 10 schools and several kindergartens in New Zealand were also affected.

The company is headquartered in Miami and has offices in the United States, Canada, Europe and the Asia-Pacific region.

“Everyone was awakened by a synchronized attack. That means they’re targeting managed service providers, and it’s kind of a one-to-many attack that affects many industries, “said Hanslovan, pointing out that healthcare companies, law firms and even federal agencies have faced similar attacks.

The White House said Sunday it is reaching out to victims of the attack “to provide assistance based on a national risk assessment”.

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On a recent trip to the fast-fashion retailer Zara, 20-year-old Katherine Hearden loaded up on tops, shorts and dresses in multiple sizes.

With Zara’s dressing rooms still closed due to Covid-related restrictions, she knew she wasn’t going to be able to try anything on in that store. So instead, Hearden checked out and schlepped across the street with her dad to another department store, where she grabbed a random pair of jeans and popped into an open fitting room. Her plan all along was to use this store to try on her Zara picks and, unabashedly, send her dad back to Zara to return what she wasn’t going to keep.

“My poor dad,” said Hearden, a student at Boston College, in an interview. “We make him wait in lines everywhere we go.”

Hearden’s experience underscores a bigger dilemma that clothing companies have been grappling with for years, but one that was especially illuminated during the pandemic. Retailers from Gap to Lululemon to American Eagle had to close stores to customers for a number of weeks last spring. And even as clothing stores began to reopen, many companies still opted to keep fitting rooms closed, in an attempt to prevent the spread of Covid. Some of them, like Zara’s, remain closed in parts of the United States.

The headaches for consumers are somewhat obvious: Not being able to try on items in stores means potentially stocking up on extra sizes, like Hearden did, to later see what works at home. Shoppers tend to employ a similar strategy when looking for clothes or shoes online — they’ll buy a dress in two or even three sizes — which has increasingly happened over the course of the health crisis. For businesses, this chain of events sends return rates skyrocketing. And that comes with a cost. With the Covid pandemic serving as somewhat of a wake-up call, retailers including the biggest in the country, Walmart, are looking for ways to solve the fitting-room dilemma.

Consumers returned roughly $428 billion in merchandise last year, or about 10.6% of total retail sales in the U.S., according to a study by the National Retail Federation. Clothing made up about 12.2% of that, the NRF said, adding that for every $1 billion in sales, the average retailer incurs $106 million in merchandise returns.

Justine E., a healthy-recipe blogger who goes by “@justine_snacks” on Instagram, recently took to the social media app to vent her frustrations about Zara.

“The dressing rooms aren’t open, so you automatically know you’ll have to return SOMETHING, but then when you’re returning that thing you will [probably] buy something else, and then you’re stuck in the ‘Zara loop,'” she wrote.

Zara didn’t immediately respond to CNBC’s request for comment.

A survey of 401 U.S. shoppers by Coresight Research found that 42.4% returned unwanted products from March 2020 to March 2021, with clothing ranked as the most returned product category, almost double the rate of electronics.

Of the top 10 causes that Coresight identified in its survey as reasons for the returns, “bought just to try on” ranked No. 7.

According to Coresight Founder and CEO Deborah Weinswig, the higher return rates specifically in the apparel category are likely being exacerbated by the fact that many people shopped online for clothing for the first time last year. Consumers who used to hit the mall had no option but to surf the web. Sales of apparel and footwear online rose 27.2% to $121.5 billion in 2020, according to Coresight data.

“High levels of returns eat into profitability on a product,” Weinswig said. “Size, fit and color not matching the shopper expectations also drives return rates in apparel.”

Retailers are now turning to smaller start-ups that have been working on technology, for years, to fix this very issue.

3DLOOK’s virtual fitting room technology gives users recommendations for styles based on their sizes.

Source: 3DLOOK

3DLook, a mobile body-measuring technology business, recently debuted a new platform, called “YourFit,” that it plans to offer to more apparel retailers. It allows shoppers to virtually try on clothes and will make sizing recommendations based on user data. The technology aims to show customers exactly how the clothing will look on them, in a virtual experience online or on a smartphone.

“Promoting people to be scanning themselves … there’s definitely a lot of education involved with that,” 3DLook co-founder and Chief Strategy Officer Whitney Cathcart said in an interview. “It’s emerging technology. Consumers have been used to taking quizzes, and our goal from day one was to ask as little from the consumer as possible and enable this really rich experience around fit.”

1822 Denim was one of the first brands to be onboarded with 3DLook’s technology about two years ago.

Tanya Zrebiec, vice president of innovation and strategy at 1822 Denim, said that the business’s return rates have dropped by roughly 48% since it partnered with 3DLook, while average order values have risen roughly 23%. Conversion rates are also up, she said, meaning customers are completing purchases rather than ditching a shopping cart online or leaving stores emptyhanded.

“There’s been so many issues with sizing, and the fashion industry telling the consumer what she should wear, what it should look like, and what size she should be,” Zrebiec said in an interview. “Most fashion companies never take into account what their consumer really looks like.”

Since adding the technology, 1822 has a much better grip on inventories, she said. It knows what its customers will be looking for because it keeps a database of their sizes.

“It’s hard to have every product size for every consumer out there,” Zrebiec said. “So this also helps us tremendously with managing our inventory levels — and really understanding who our customer is, what her sizing is, and how we can get the right product and not have overages and inventories that are just wasted.”

One of the biggest votes of confidence in virtual fitting-room technology has been from Walmart, which in May announced it would be acquiring the Israeli start-up Zeekit, in a bid to better cater to customers shopping its website for apparel. Terms of the deal weren’t disclosed.

Walmart is acquiring Zeekit, a virtual fitting room start-up, which has technology that allows shoppers to upload a photo, digitally try on a clothing item and get a friend’s opinion.

Source: Walmart

When Zeekit’s technology is embedded on Walmart’s website, customers will be able to upload photos of themselves — or choose from different models that represent their height, shape and skin tone. The site will then show how clothes will fit. Users can also share virtual outfits with friends for second opinions.

Zeekit has said that its virtual fitting rooms cut return rates by 36%. Its previous clients include department store chain Macy’s and sneaker maker Adidas.

“Virtual try-on is a game changer and solves what has historically been one of the most difficult things to replicate online — understanding fit and how an item will actually look on you,” said Denise Incandela, Walmart U.S. executive vice president of apparel and private brands.

Before people started using augmented reality apps to try on clothes, though, the virtual try-on experience was most widely adopted by the beauty industry. Google launched an augmented reality beauty try-on tool late last year, to help brands including L’Oreal, MAC Cosmetics and Charlotte Tilbury. Lip balms and eye shadows are much easier to replicate on a face on a mirror, experts say, than finding the right fit of an entire outfit.

Facebook is working on ways to use augmented reality to virtually try on items such as clothing — even when it’s shown in an ad. This could be one initiative that helps to catapult the experience into the mainstream. It would follow Snap acquiring the sizing tech company Fit Analytics in March.

Amazon, which has unseated Walmart to become the biggest apparel retailer in the country, has dabbled in virtual fitting-room technology, but nothing has gained momentum. It appears more focused on making the technology work in the home category. It has a “View in Your Room” feature on its website for customers to design a space with augmented reality tools.

Amazon could be looking to ramp up its investments as they relate to fashion, following Walmart’s move. Still, some consumers are likely always going to prefer a trip into an actual dressing room.

“I would be skeptical of it,” Hearden said about using virtual fitting-room technology for herself. “I still like to try on.”

Pedestrians pass in front of an AMC theater in New York.

Scott Mlyn | CNBC

AMC Entertainment said Tuesday that it has tabled a proposal that would have asked its shareholders to allow the movie theater chain to issue up to 25 million more shares.

In a filing with the Securities and Exchange Commission, the company said the proposal has been withdrawn from an agenda for its upcoming annual meeting of stockholders.

AMC shares jumped more than 5% in early trading on the news.

Chief Executive Officer Adam Aron also announced the news on Twitter, saying: “It’s no secret I think shareholders should authorize 25 million more AMC shares. But what YOU think is important to us. Many yes, many no. AMC does not want to proceed with such a split.”

In recent weeks, the company has been caught up in a trading frenzy among retail investors that use platforms like Reddit to boost their stock picks. That has driven AMC shares up more than 2,350% year to date. The company’s market cap has ballooned to more than $26 billion.

Previously, AMC had been looking to do more stock offerings to raise money to allow it to fund potential acquisitions, including buying ArcLight and Pacific theater locations that were shuttered during the pandemic. It also said the funds could be used to pay down debt, reduce interest costs, or pay off millions in unpaid rent.

In recent months, AMC had been using stock sales to raise fresh capital. Without these additional shares, Aron has said the company would not have avoided bankruptcy.

AMC has navigated the coronavirus pandemic through fundraising efforts that have allowed it to continue to operate, albeit at limited capacity. Vaccination efforts, relaxed Covid restrictions and new movie releases are now helping to drive customers back.

—CNBC’s Sarah Whitten contributed to this reporting.

Thrill seekers wear face masks as they ride “The Smiler” rollercoaster at Alton Towers on the first day opening after after lockdown restrictions were eased on April 12, 2021 in Alton, United Kingdom.

Christopher Furlong | Getty Images News | Getty Images

LONDON — Since the start of the coronavirus pandemic, many countries have introduced laws forcing people to wear face masks and coverings in public places in an effort to stop the spread of the virus.

While for some, face masks are not unusual and have been adopted without complaint, a vocal minority have railed against what they see as an imposition on their personal freedom. Proponents of face coverings cite studies that prove they prevent the spread of Covid-19 and so potentially save lives.

Now, as countries loosen restrictions, the wearing of face masks — or not — looks set to remain just as contentious an issue.

The debate over mask wearing heated up in England Monday after the British government announced that it would become a matter of “personal responsibility” rather than a legal requirement once Covid restrictions are removed, as planned, on July 19.

The move immediately provoked a strong response from people on both sides of the divide, who soon took to Twitter to share their views.

On Tuesday morning, the #WearAMask hashtag was trending on the social media site with debate raging between members of parliament, medical professionals and the public over whether they will (or rather, should) wear a face covering after restrictions end.

Currently, face masks or coverings must be worn in all public indoor settings in England, such as stores, supermarkets, theaters, museums and on public transport unless an individual is exempt for medical reasons. British police have the power to fine anyone £200 ($277) for not wearing a mask.

For and against

The U.K. government’s plans to lift rules on mask-wearing was widely praised by Conservative Party lawmakers, particularly those who have vehemently opposed the strict Covid restrictions, given the impact on the economy and livelihoods.

The Conservative MP for New Forest West, Desmond Swayne, was among those who voiced his support for the plan, telling CNBC Tuesday that he believed the case for mask wearing in order to prevent the spread of disease was “at best marginal” and that they had been used more as a way to induce “public reassurance and control.”

“They [masks] have significant social and psychological downsides,” he added. “It always struck me as quite incredible in a free society that we should be instructed about what to wear and fined for not doing so. Their status from 19 July is the right one: a matter of personal choice.”

Swayne, and others who see the imposition of masks as an affront to civil liberties, represent one side of the debate, and protests have been held in Britain against Covid measures, including mask wearing.

A protester holds a placard expressing her opinion during an anti-lockdown protest.

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But there are plenty on the other side of the debate, arguing that it’s a civic duty to wear a mask and stop the spread of a virus that has now killed over 3.9 million people worldwide, according to data from Johns Hopkins University.

Following the U.K. government’s announcement on Monday, trade union Unite, the opposition Labour Party and some health experts were quick to voice concern or to criticize the plan, saying it is risky at a time when the delta variant is causing a surge in Covid cases, both in England and beyond.

Unite, which represents many public transport workers, said removing face coverings as a requirement would be “an act of gross negligence by the government,” and Keir Starmer, leader of the Labour party, described the move as “reckless.” Some businesses have already come out saying that face masks will still be a requirement for customers, such as airlines Ryanair and easyJet.

The U.S. stance

England is, of course, not alone when it comes to the public debate over face masks, with the U.S. seeing a similar divide. Unlike in England, however, the rules diverge from state to state in the U.S. In some states, masks are mandatory, in others, states follow the latest guidance from the U.S. Centers for Disease Control and Prevention.

In May, the CDC stated that fully vaccinated people no longer needed to wear a face mask or stay six feet away from others in most settings, whether outdoors or indoors, although it noted some nuances to the guidance (i.e. in a health-care setting or at a business that requires them).

The CDC also noted that fully vaccinated people would still need to wear masks on airplanes, buses, trains and other public transportation.

However, in June, the World Health Organization urged fully vaccinated people to continue to wear masks as the highly contagious delta variant spread rapidly across the globe.

“People cannot feel safe just because they had the two doses. They still need to protect themselves,” Dr. Mariangela Simao, WHO assistant director-general for access to medicines and health products, said, adding that a “vaccine alone won’t stop community transmission.”

What will Boris Johnson do?

Health experts, particularly those advising the U.K. government, have arguably been put in a difficult position when it comes to mask wearing.

While the U.K.’s vaccination drive has helped to break the link between infections and hospitalizations and deaths, cases are surging in younger and not-yet-fully vaccinated age groups, prompting the government to speed up the final leg of vaccinations for all U.K. adults. On Monday, over 27,000 new Covid cases were recorded, bringing the total number of infections confirmed in the U.K. to over 4.9 million.

Asked at the government’s press conference whether they would continue to wear masks themselves, medical experts advising Prime Minister Boris Johnson said they would in certain circumstances.

“The first is in any situation which is indoors and crowded, or indoors with close proximity to other people. And that is because masks help protect other people,” England’s Chief Medical Officer Chris Whitty said.

He added that “the second situation is if I was required to by any competent authority … And the third reason is if someone else was uncomfortable if I did not wear a mask – as a point of common courtesy.”

And what about Johnson? Asked whether he would continue to wear a mask when restrictions are lifted (a final decision on this will be made on July 12) he said “it will depend on the circumstances.”

“Clearly there’s a big difference between traveling on a crowded Tube train and sitting late at night in a virtually empty carriage on the main railway line,” Johnson said.

“We want people to exercise their personal responsibility but remember the value of face coverings both in protecting themselves and others.