Retailers face a huge challenge when it comes to protecting their customers’ private information. Whether a person shops in a store or online, their financial information is vulnerable to attack. Cyber security is a growing part of the retail industry. So, in this article, we look at why the retail industry requires enhanced cybersecurity protection.
During the pandemic, many businesses were saved by online shopping and “click-and-collect” services. On the other hand, many businesses that didn’t have a strong online presence or didn’t have one at all struggled or went out of business.
But the fact that so many people shop online also opens up new ways for things to go wrong. Online retail has become a favorite target of cybercriminals and has been one of the most attacked sectors this year. Before, shoplifting was the only type of crime that happened in retail.
According to KPMG, 19% of consumers would quit buying at a store following a data leak and 33% would take a prolonged pause. Many retail breaches are triggered by insider threats or weaknesses in POS systems.
Why Are Retailers Cyberattack Targets?
During the pandemic, many businesses had to sell all of their products and services online. even though e-commerce was growing before the pandemic. At the height of the crisis, online shopping sales in India increased by 48%. Customer information, including both card payment data and basic personal information, has been the most common target. Customers who use frequently-repeated login information for their accounts provide retailers access to a lot of sensitive data about them. Compounded by an industry ripe for cybercrime, the retail industry is a perfect storm for cybercriminals.
What Does Cybersecurity Mean for Retailers?
Businesses put a lot of money on the line to protect their customers’ retail data. If a cyberattack occurs, the organization will definitely lose a lot of money while trying to fix the problem and protect customers. After a breach, businesses are often forced to pay for extra IT support, legal help, and customer restoration.
Retail cyberattacks do a lot more damage to businesses because they hurt customer trust. When a security breach makes the news, customers are less likely to use their credit cards or shop at the affected stores for a long time. Retailers may see significant drops in sales in the months after these kinds of disasters, so they have to work hard to protect their customers’ information in order to keep making money.
What Should Retailers Do for Enhanced Cybersecurity Protection?
Retail Information security corporations need a strategy. An effective security program requires top-down devotion from security experts. They should also make sure executives and managing directors understand data protection’s importance to the organization.
To Reduce Third-Party Participation
As network boards become more secure, criminals target IT distribution and partnerships. Third-party sellers should be evaluated based on their danger to the company. Since self-certification systems have proven unreliable, retailers are being pushed to switch to effective cyber risk assessment. They need to control private entities to reduce the responsibility of third parties.
Set up a System for Running IT
All business now takes place online. People no longer build a wall and expect it to be impossible to breakthrough. With each new partner, client, and business connection, the network grows and becomes more open. It’s essential to build the framework for security. It is also important for companies that want to grow while reducing risk and operational costs.
Make a Long-Term Investing Decision
Retailers have traditionally paid less attention to IT security than organizations in the financial, production, entertainment, and media industries. Most stores follow the credit card industry’s basic criteria to save costs and increase profit margins. Retailers have to invest to stay up with the risks.
Staff training is a key part of any security plan since people are often the least popular element. Retailers should build a safe, controlled environment by educating and building up the skills of their employees. Employees should learn about work and personal cyber security.
NIST Cybersecurity Framework
NIST and ISO combined their cybersecurity techniques in the NIST Cybersecurity Framework. This Framework is a threat-based set of principles that helps firms evaluate their cybersecurity capabilities and set goals. It also helps them maintain and improve cybersecurity policies and activities.
Risk assessment, access control, data protection, staff training, incident recording, and analysis are examples. The Framework frames cybercrime as threat management. It creates a common vocabulary for discussing security with top executives and the board. The recommendations may set cybersecurity standards for future court decisions. Companies are now adopting the Framework at the highest risk-tolerance level.
Cybersecurity for Retailers is Changing at the Speed of Business
Retailers’ business models change as fast as the cloud, so their cybersecurity programs need to be just as flexible. As more people get used to shopping online and trying new digital things, many may never shop the same way again. Retailers should secure their digital transformation initiatives from the start to protect their brand reputation and new income sources.
In the same way, retailers need to use new security methods and the technologies that make them possible. Every time a business implements a new security measure, cybercriminals look for new methods to exploit it. Hence, businesses should use dynamic and adaptable security methods to protect their environments from threats. To assure proper and secure customer experiences, businesses need to use technologies and platforms that build security into interaction.
Retailers will find out that it is impossible to stop all cyberattacks. Instead of trying to control every attack, businesses may want to focus on making plans for how to handle them when they do happen. Companies may continue to put a lot of effort into protecting their clients’ data and getting better at responding quickly to cyber-attacks. When coming up with new ways for customers to buy things, like using cloud services, merchants should also focus on improving security protocols.
Author Bio – Manoj Kumar
Manoj Kumar is a young blogger and digital marketer at Aeologic Technologies. Covering topics related to emerging technologies – AI, IoT, Big data, Cloud Computing, Cyber security, RFID and industrial automation. You can find Manoj on LinkedIn & Instagram.