Cyber security in retail: minimizing risks, strengthening trust

Key factors for a strong cyber security strategy for retailers

02.09.2024

by Julia Pott

It is not only retail itself that has shifted to the internet with e-commerce and mobile commerce. The same applies to business processes and data management in retail companies, which are increasingly communicated online and managed in the cloud. In this digital age, retail companies are facing growing threats from cyberattacks. An effective cyber security strategy is therefore crucial to minimize these risks.

A masked hacker works in a dark room on a computer screen with visible program code; Copyright: Adobe Stock

Cybersecurity is increasingly threatened by cyberattacks

Cybersecurity refers to the protection of networks, systems and programs against digital attacks. These attacks are usually aimed at accessing, altering or destroying sensitive data, disrupting operational processes or committing fraud. The most common types of cyberattacks include malware attacks (such as viruses, ransomware or spyware), phishing or denial-of-service attacks. These attacks exploit security vulnerabilities or human errors to gain access to data or disrupt processes. The motives behind such attacks range from financial gain and political agendas to simple vandalism.

A digital user interface with a lock symbol that stands for data security and cyber protection; Copyright: Adobe Stock

Why is cyber security relevant for retail companies?

The digital world is becoming increasingly insecure, the number of cyberattacks is rising steadily and many cybercriminals are recognizing the internet as fertile ground for financial gain. In 2023, there was a 72% increase in data breaches compared to the previous record year of 2021. These breaches have significant financial consequences, with the average company losing 1.3 million dollars from a single data leak, according to Forbes. These figures highlight just how important cyber security is for businesses.

The beginnings of hacking = catalyst for cyber security considerations

In 1967, IBM invited students to test their new computers. The students initially explored the accessible parts, but soon learned the language of the system and penetrated into depths that were not intended for end users. This was the starting point for thinking about penetration testing and cyber security.

Retail companies are particularly susceptible to cyberattacks due to their extensive customer and transaction data and their increasingly digitalized operating processes. Successful cyberattacks that lead to business interruptions or data loss damage trust in a brand.

These business areas can be affected by cyber attacks

Certain areas of a company's infrastructure are particularly at risk and should be protected.

Application security & network security: Ensure that software, applications and the network infrastructure are protected against hacking and unauthorized access.
Cloud security: Establish protective measures for cloud environments.
Data security: Protect the integrity of company and customer data through encryption and access controls.
Endpoint security: Secure devices such as PCs and smartphones against malware and misuse.
Access management: Ensure that only authorized users have access to certain resources.
Business Continuity & Disaster Recovery: Plan how to deal with IT disruptions in order to restore functionality as quickly as possible.

Technology innovations are revolutionizing retail, from the store to the back office, from the supply chain to the checkout – Stay in touch with developments: Find the latest solutions, an invaluable exchange with the industry and plenty of expertise at EuroCIS – the Leading Trade Fair for Retail Technology.

Advantages of a robust cyber security strategy

A digital network displays illuminated security locks that symbolize the protection of data and access points; Copyright: Adobe Stock

A robust cyber security strategy offers companies numerous long-term benefits. It not only protects against business interruptions and downtime, but also strengthens the trust of customers and partners. In addition, cyber security helps to avoid financial losses that could result from cyber attacks. Secure IT infrastructures allow companies to increase their efficiency as they are less distracted by security incidents. Although cyber security requires an initial investment, it pays off in the long run as companies are better protected against growing threats and secure their future viability.

Recommendations for retail companies

To protect themselves effectively against cyber threats, companies should take the following measures step by step:

Risk assessment: Take a look at the current cyber security situation and identify weak points in your company.
Cybersecurity culture: Develop a corporate culture in which your employees are aware of the dangers and defensive measures. Establish clear guidelines for handling access and data.
Expertise: Invest in a department with cyber security expertise or hire specialized service providers. Train your employees.
Technology: Make sure that all systems are up to date. Find out how you can use the latest technologies such as artificial intelligence and machine learning to better respond to threats.
Compliance: Ensure compliance with relevant security certifications and standards.

By implementing these measures, retail companies can improve their resilience to cyber threats.

Quellen: BeyondTrust, Forbes