Cybercriminals have taken their malicious activities to a more personal level, as highlighted in KnowBe4’s “Global Retail Report 2025.” The report reveals that the greatest threat faced by retailers is credential harvesting, where personal information is obtained through nefarious means.
According to researchers at KnowBe4, credential harvesting, often carried out through phishing attacks, accounted for 38 percent of all compromised data in 2023, surpassing payment card data theft, which dropped to 25 percent. This shift in tactics has put retailers and consumers on high alert, with a recent survey from CardRates.com showing that 84 percent of U.S. consumers express concern about cybersecurity risks.
The rise in cybercrime targeting the retail sector is evident in the staggering 56 percent increase in cyberattacks. This surge has propelled retail to one of the top five industries targeted by cybercriminals, with the average cost of a single retail data breach reaching $3.48 million in 2024, marking an 18 percent increase from the previous year.
Stu Sjouwerman, CEO of KnowBe4, emphasized the critical nature of this shift in cybercriminal behavior, with stolen credentials providing immediate access to personal accounts, circumventing security measures like passwords and two-factor authentication. The report also highlighted the importance of implementing frequent security awareness training to mitigate human risk factors in retail security strategies.
The prevalence of credit and debit card usage in retail transactions has made the sector a prime target for cybercriminals seeking valuable personal information. More than 62 percent of purchases are made using these cards, entrusting retailers with PII such as names, addresses, and phone numbers. The extensive data gathered by retailers during transactions makes them an irresistible target for cybercriminals, especially with the aid of advanced AI tools that enhance intrusion techniques.
Further analysis of the research revealed that North America witnessed the highest percentage of cyberattacks in the retail sector, followed by Latin America and Europe. In the U.S., retail accounted for 45 percent of global ransomware attacks, despite representing only 28 percent of market share, solidifying its position as the second most targeted sector.
To combat these increasingly sophisticated cybercrimes, retailers must prioritize reducing human risk factors through workforce education on phishing tactics and other security measures. The impact of security awareness training was evident in the significant decrease in employee susceptibility to phishing attacks, underscoring the importance of continuous education and training in safeguarding retail operations.
In conclusion, the evolving landscape of cybercrime in the retail sector underscores the critical need for proactive security measures and ongoing vigilance to protect consumer data and mitigate risks posed by cybercriminals. By prioritizing cybersecurity awareness and training, retailers can enhance their defenses against a growing number of threat actors targeting the industry.