As the holiday shopping season kicks into high gear, retailers are gearing up for an estimated $1.5 trillion in sales in the US alone. However, with the increased focus on sales and customer experience, cybersecurity should not be overlooked. Cybercriminals view the holiday season as a prime opportunity to strike, as retailers hold a treasure trove of personal and financial information. This is why it’s important for retailers to reassess their security policies and identify the biggest threats, while also implementing best practices to neutralize them.
Retailers are particularly vulnerable to cyberthreats due to the vast amount of personal and financial information they store, making them attractive targets for cybercriminals. The holiday season, in particular, presents a window of opportunity for cyber threats such as ransomware and distributed denial-of-service (DDoS) attacks, which can disrupt business operations and potentially lead to financial losses or reputational damage. With employees and IT teams focused on maximizing revenue during the busiest time of the year, they may inadvertently overlook cyber threats or modify internal fraud filters to facilitate transactions without proper scrutiny.
Moreover, the increasing reliance on digital systems to support omni-channel commerce, including cloud-based business software and customer-facing mobile applications, has expanded the potential attack surface, leaving retailers vulnerable to various cyber threats. This was exemplified in 2013 when US retailer Target experienced one of the largest data breaches during the holiday season, resulting in the theft of 110 million customer records.
Considering the looming threat, retailers should be aware of the various cyber threats they face, including data breaches, digital skimming, ransomware, DDoS attacks, supply chain attacks, account takeovers, malicious bot attacks, and API vulnerabilities. These cyber threats can exploit vulnerabilities in web applications, insert skimming codes to steal payment information, disrupt business operations, and potentially lead to financial and reputational damage if not mitigated effectively.
To protect themselves against cyber risks, retailers need to strike a balance between security, productivity, and business growth. This includes implementing best practices such as regular staff training to identify phishing attacks, conducting data audits, applying strong encryption to sensitive information, risk-based patch management, multi-layered protective security, extended detection and response (XDR), supply chain security, strong access controls, disaster recovery and business continuity planning, incident response planning, and maintaining PCI DSS compliance.
By implementing these best practices and being alert to potential cyber threats, retailers can minimize the risk of cyber attacks and ensure a secure and prosperous holiday shopping season for both themselves and their customers. It is imperative for retailers to remain vigilant and take proactive steps to protect their business and their customers from cyber threats during the busiest shopping period of the year.