Top 10 Cybersecurity Risks for Retailers This Holiday Season
As the holiday season approaches, retailers face not only the positive prospect of increased sales, but also heightened cybersecurity risks.
The festive period brings unique challenges to the retail and eCommerce sectors, with cybercriminals often capitalising on the surge in shopping activity.
Understanding these risks is the first step towards mitigating them.
In this blog we’re exploring the top 10 cybersecurity risks for retailers during the holiday season:
- Increased Phishing Attempts: The holidays see a spike in phishing scams, with cybercriminals using cleverly disguised emails to lure employees into revealing sensitive information or clicking on malicious links.In one example, a large electronics retailer experienced a sophisticated phishing attack during the holiday season. Cybercriminals sent emails to the company’s employees that appeared to be from the HR department, requesting them to update their personal information for a holiday bonus payout.
The emails contained links to a fake HR portal that mimicked the company’s internal system.
Unsuspecting employees who clicked on the link and entered their credentials inadvertently provided cybercriminals with access to sensitive company data, leading to a significant data breach. This incident highlights the importance of educating staff on recognising phishing attempts, and establishing robust verification processes for internal communications, especially during high-risk periods like the holiday season.
- Payment Card Fraud: With a high volume of transactions, retailers become prime targets for payment card fraud. Ensuring compliance with Payment Card Industry Data Security Standard (PCI DSS) is crucial.
- Unsecured Public Wi-Fi Risks: Customers using unsecured public Wi-Fi networks while shopping online can inadvertently expose their personal and payment information.
- DDoS Attacks: Distributed Denial of Service (DDoS) attacks can overwhelm retailers’ websites, leading to downtime and loss of revenue, especially detrimental during peak shopping periods.DDoS attacks have increased by 40% in the last six months, with a notable rise in attacks targeting the e-commerce sector. This shift highlights the evolving nature of cyber threats, where sectors like e-commerce, previously less targeted, are now facing an increased risk.
- Ransomware Threats: Ransomware attacks can lock retailers out of their critical systems, demanding hefty ransoms to restore access, potentially causing significant operational disruptions.One notable ransomware attack occurred with The Works, a UK-based retailer. The company faced a ransomware attack that forced the shutdown of all 526 of its stores initially. Although no ransom was demanded and no credit card data was stolen, the incident highlights the disruptive potential of ransomware in retail. The software used in the attack was known to be a weapon of ransomware gangs, showcasing the sophistication of such threatsLearn more about how retailers can stay secure against increasing cyberattacks.
- Insider Threats: The use of seasonal staff increases the risk of insider threats, either through malicious actions or inadvertent security lapses.
- Supply Chain Vulnerabilities: Retailers’ reliance on third-party vendors and complex supply chains presents multiple points of vulnerability that can be exploited by cybercriminals.Learn more about how 300 SPAR stores were forced to close due to a cyberattack originating from its supply chain.
- POS System Breaches: Point-of-Sale (POS) systems are a hot target for attackers looking to skim credit card data or install malware.
- Data Breaches: Handling large volumes of customer data makes retailers attractive targets for data breaches, leading to the loss of sensitive customer information.As the cost of data breaches continues to soar, reaching an all-time high of $4.45M, organisations must invest in proactive cybersecurity solutions in order to protect their business effectively.
- Inadequate Staff Training: With the hustle and bustle of the season, regular staff training on cybersecurity best practices can fall by the wayside, leaving vulnerabilities unaddressed.
Preventive Measures and Best Practices
Combatting these risks requires a proactive approach. Retailers must ensure that their cybersecurity infrastructure is robust and up to date. This includes implementing regular system updates, ensuring PCI DSS compliance, and utilising fraud detection mechanisms. Monitoring transaction patterns for unusual activities and investing in staff training are also key strategies.
Another critical aspect is preparing the IT infrastructure for increased traffic. Ensuring that cybersecurity measures can scale with the surge in online activity is vital to maintaining security and performance. It’s also crucial to have a data backup and recovery plan in place, to mitigate the impact of potential cyber incidents.
The holiday season is a crucial time for retailers, and it’s imperative to stay vigilant against these heightened cybersecurity risks. Understanding and preparing for these challenges is key to ensuring a successful and secure festive period.
For a more in-depth exploration of these challenges and comprehensive strategies to address them, read “Fortifying Retail Cybersecurity: Navigating the Holiday Season Surge“.
The ebook will provide you with valuable insights and actionable advice, helping you to navigate the holiday season with confidence and security. Read the ebook, and strengthen your cybersecurity posture this holiday season.
