In today’s digital age, retailers face a complex and evolving cybersecurity landscape. As technology advances, so do the threats aimed at businesses in the retail sector. Understanding this landscape is crucial for protecting sensitive customer data and maintaining customer trust. This introduction will provide an overview of the key challenges and considerations in cybersecurity for retailers.
By Cian Heasley, Threat Lead at Adarma
Retailers worldwide are preparing for the holiday season, the busiest and most profitable time of the year. With a projected £84.9 billion in spending in the UK alone, the stakes are high, not just for retailers but also for cybercriminals who are planning their own digital ambushes.
Retailers manage vast amounts of data and operate in a lucrative sector, making them prime targets for cybercriminals. A single cyber incident can cause substantial financial losses, legal complications with regulators, diminished customer trust, and long-term reputational harm, so it is crucial for retailers to prioritise cyber risk reduction.
The cybersecurity landscape is constantly evolving, with cyber and IT teams needing to develop new and innovative strategies to counter the tactics of attackers. The emergence of artificial intelligence has further enhanced the productivity of these threats. This blog offers an introduction for retailers who wish to understand their cyber threat landscape.
It’s no surprise that ransomware continues to pose a significant risk for retailers in 2024, given its frequent presence in the news. The persistence of ransomware can be attributed to two main factors. Firstly, many companies are still willing to pay the ransom. Recent research indicates that over $1 billion was paid to cybercriminals in ransoms in 2023, highlighting that ransomware has become a lucrative business. Secondly, many modern ransomware attacks not only encrypt data but also threaten to leak that data if the victim does not comply. This evolution has given ransomware gangs an additional revenue stream and has, unfortunately, created more reasons for victims of all kinds to pay once their data is encrypted.
Data breaches, often the result of vulnerabilities in third-party supply chain services, are a growing concern in the retail industry. In Q2 of 2024, the breach of Snowflake, a cloud storage provider, caused widespread chaos throughout the retail ecosystem, leading to breaches at household names in the sector such as Ticketmaster.
These breaches, which could breach retailers’ regulatory responsibilities to customers, should be taken extremely seriously. They also serve to underline the interconnected nature of modern retail operations: supply chain vulnerabilities at a widely used provider, such as Snowflake, can have widespread ramifications across the sector and beyond.
Phishing campaigns can affect any organisation, but retailers face specific concerns. They often employ a large and diverse workforce, which creates numerous potential credentials that hackers may target. These vulnerabilities can arise from social engineering tactics or inadequate password and authentication practices.
These attacks often target gift card fraud. They use phishing tactics or compromised accounts to steal credentials and bypass multi-factor authentication, allowing long-term access to corporate networks.
To effectively understand cybersecurity concerns, retailers need to recognise them as an inherent aspect of conducting business online. These concerns represent risks that must be managed, much like risks in other areas of the business.
To mitigate the risks associated with cybersecurity threats and prevent them from becoming critical, retailers must prioritise network backups and software updates. This proactive approach will help reduce the likelihood of a serious breach.
Another important area to prioritise is cybersecurity awareness training, which can quickly and effectively educate employees about the dangers of phishing attacks and the necessity of strong password hygiene.
The increasing complexity of cyber-attacks and the widespread impact of supply chain vulnerabilities present significant challenges for retailers in securing their IT assets. To be successful, they must implement strategies, policies, and procedures that the key stakeholders (both within the business and externally) have all agreed upon, planned for, and practised in the form of tabletop exercises. By undertaking this preparatory activity, retailers can ensure that if the worst should happen, they are ready to take the necessary steps towards mitigation.
While there is no such thing as eliminating cyber risk for retailers operating with any kind of connected infrastructure, by staying up to date with the latest threats and ensuring adequate planning, this risk can be managed appropriately before it becomes a crisis.
Adarma provides customised cybersecurity solutions to assist businesses in achieving future-ready cyber resilience. Our approach enables organisations to decrease cyber risks by implementing effective threat intelligence, exposure management, and detection and response capabilities. We offer tailored threat intelligence, technological solutions, and strategic consultations that cater to our customer’s specific security requirements and business goals. Our expertise guarantees a balanced approach between security and operational efficiency, safeguarding our customers’ most crucial infrastructure and data.
Discover our tailored services and find out why we are the preferred security partner for FTSE 350 firms.
If you would like to learn more about how Adarma can support your organisation’s cyber resilience, please get in touch with us at hello@adarma.com.
To hear more from us, check out the latest issue of ‘Cyber Insiders,’ our c-suite publication that explores the state of the threat landscape, emerging cyber threats, and most effective cybersecurity best practices.
You can also listen to our new podcast, which explores what it’s really like to work in cybersecurity in today’s threat landscape.
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