Like most industries worldwide, the retail sector has had to adapt to a changing security and fraud landscape. Digital threats continue to evolve and find new opportunities to exploit vulnerabilities, so it’s important for retailers to anticipate and protect themselves against such threats.
These threats aren’t only targeting online stores either; brick-and-mortar retailers face the potential of having their POS system, payment system, or CRM hacked by thieves after customer financial or other personal info.
This post will look at some of the most common types of threats that retailers face and then examine a few simple strategies and solutions that they can take to ensure they’re protected against cyber threats. Learn how to improve retail data security and keep your business operating smoothly.
8 of the Most Common Cybersecurity Risks for Retailers
Let’s start with the threats that retailers face. It’s worth pointing out that this list won’t apply to all retailers, and it’s not intended to be fearmongering. Instead, it’s good to know the risks, assess how serious the risk is to your particular business, and then take appropriate action to protect yourself and your business.
Ransomware
Ransomware is often a byproduct of a phishing attack. Many cybercriminals install ransomware on a device or network after gaining access by phishing a customer or employee.
This is arguably the most common type of attack on retail businesses and can take days to resolve if attacked by complex ransomware.
Social Engineering
The retail sector is particularly vulnerable to this attack, primarily because of potentially unknowing or untrained staff members and/or customers.
Social engineering attacks are a form of phishing. They involve a criminal tricking someone into sharing personal, often financial, information, passwords, or other credentials used to access sensitive data.
Payment Machines
Credit and debit machines can also be compromised. Newer payment technology at the retail point of sale has opened new avenues for digital payments, streamlining the checkout process. Some, like chip-and-PIN entry, have added security to the payment process.
Still, there are vulnerabilities. NFC payments work without passwords and hackers can access data stored in these terminals. It’s tricky, and unlikely, but still a possible vulnerability.
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Infiltrated Software
There are some additional vulnerabilities for larger retailers with extensive networks and third-party connections. One compromised piece of software could infect others, affecting the entire network.
Encryption Issues
Encryption of payment and financial information is absolutely critical for retailers. Without it, hackers can access a customer’s payment information without anyone knowing until it’s too late. Be sure to check with your payment processor that they’re fully PCI compliant.
Botnets
Cybercriminals can use vast automation through botnets to penetrate various retail systems. Unfortunately, retailers rely on various pieces of automation to run certain operations, like POS systems, inventory management software, marketing operations, contact software, or billing and accounting services.
Some of the most common types of botnets include credential stuffing (a type of brute force attack that uses stolen login credentials on many sites simultaneously), credential cracking (trying thousands of different common passwords to gain access to a site), fake accounts (used to distribute malware, fraud other users, or steal identities), web scraping (used to steal data to be repurposed/plagiarized), and DDoS attacks (distributed denial of service attacks hold an organization’s IT department hostage often with a ransom involved).
Physical Attacks
Cybercriminals can also move out of the cyber realm. Some still go after on-site servers that contain valuable information. For businesses not using retail technology like cloud POS software or other cloud systems, it’s vital that any servers on location are well protected.
Internal Threats
Retail businesses are all too familiar with internal theft, but staff can sometimes pose a cybersecurity threat, too. Protect your servers and limit access to sensitive cloud materials, like your POS backend system, to management and owners.
Learn more about the best features and tools in KORONA Studio in this free eGuide.
7 Cybersecurity Solutions for Retailers
While the threats may seem overwhelming, there are some relatively simple best practices that retailers can take to protect their businesses. This section will briefly cover a few of those to improve your retail security and avoid common cyberattacks.
Train Your Staff
Keep your internal operations buttoned up by hiring a strong team and training them on your POS and various cybersecurity best practices. Remember that what might seem obvious to you may not be so obvious to everyone, so it’s important to be thorough.
Remind team members that suspicious emails, strange access requests, and password management are some basic things to be aware of.
Devise a Strategy
Start with a concise and organized strategy for dealing with cybersecurity threats. Consider hiring a consulting agency, IT support firms, or internal staff to prevent attacks and have plans in place in the event that an attack happens.
Follow All Major Cybersecurity Laws
There are more laws protecting consumer data than ever. It’s important that retailers follow all of them – local, national, and, in some cases, multi-national. The General Data Protection Regulation (GDPR) is one of the most stringent data protection regulations. While only applicable to European businesses, these types of regulatory bodies will only increase across other parts of the globe.
Use Two-Factor Authentication (TFA)
TFA has become increasingly common among all types of businesses. It’s a much surer way of protecting credential-based access to sensitive info and is very easy to set up. Some retailers can take this a step further with fingerprint scans, facial recognition, or encrypted badges/ID cards.
Encrypt and Backup Data
Keep all data encrypted and protected from cyber threats. To protect your business from data leaks, back up all data in the cloud, including your POS data. This helps minimize the fallout from any data breaches or accidents.
Hire IT Professionals
If your business is big enough and has the budget for it, it’s smart to hire an internal IT team. Not only will a tech support team assist with security issues but they can also help retailers improve their network, website, payment systems, RFID security, CRM, POS, and other technical aspects of the operation.
Update Software
Most retail businesses are using various forms of cloud-based subscription software. These systems should be constantly updated with new tools and better security. Check with your various providers about their security standards.
Improve Data Security with the KORONA POS
Choosing the right POS system is an important step in making sure your business is protected against cybersecurity threats. There are different requirements for on-premise versus cloud-based systems.
On-premise POS systems must have all on-site servers locked in a protected room or closet. This prevents anyone without expressly granted access the ability to pull data from the servers.
Cloud POS systems must be vetted for their data security since all customer data will be stored in off-site servers managed by the point of sale provider.
KORONA POS ensures each of its merchants a level of security with its advanced data management and cloud protection. Learn more about how KORONA POS works with a custom demo. Click below to schedule that or start a free trial.
