3 Cybersecurity Risks That Retailers Must Mitigate

Security breaches continue to pose a significant threat to retailers. With cybercriminals targeting leading retailers including WH Smith and JD Sports, the first quarter of 2023 has clearly highlighted that there's significantly more to be done to mitigate cyberattacks in the retail sector.

Technological advancements have empowered businesses to strengthen their cybersecurity. However, hackers continue to leverage new technologies to make their attacks more sophisticated. Consequences of these breaches are twofold: they not only negatively impact sales, but also damage the reputation of retailers, putting them at risk of losing their customers’ trust and loyalty.

Some of the most common cybersecurity threats facing retailers include credential theft, phishing and bad bots, and insider threats. Retailers must have appropriate understanding of these risks in order to be able to mitigate them.

Credential Theft: A Persistent Threat

According to Statista, credential theft and phishing were among the top 10 in the list of most commonly reported cybercrime categories. Hackers continue to find new ways to steal the login credentials of employees at specific designations within a company to gain access to sensitive data. Commonly, cybercriminals tend to leverage sophisticated phishing attacks and the use of malware to gain access to employees’ devices to steal their credentials and data. Once they gain access, these malicious actors can carry out various nefarious activities, wreaking havoc on a retailer's systems and data. In fact, advanced cybercriminals can move laterally, placing backdoors, RATs and other software to become persistent, exfiltrate sensitive data of employees and customers to resell or utilize for their own financial gain. Retailers should remain wary of credential theft, which can be leveraged for distributing crimeware or more sinister acts like blackmail.

Insider Threats and 'Bad Bots': Internal Menace

Insider threats even pose more significant cybersecurity risk to organizations as they're performed by malicious insiders that already have information readily available. In fact, over 30 percent of chief information security officers (CISO) worldwide find insider threats to be a significant risk to their organization's cybersecurity. Driven by their malicious intent and financial motivations, insiders often compromise sensitive data either with some external hacker or possess it in their own devices to demand ransom. Moreover, "bad bots" enable bot operators, attackers, unsavory competitors, and fraudsters to engage in a wide array of malicious activities. These bots affect the confidentiality, integrity and availability of data in retail systems. This can have severe implications for retailers, both in terms of financial loss and reputational damage. The question remains: How can retailers withstand all these internal and external cybersecurity risks?

Bolstering Cybersecurity: The Way Forward

To effectively mitigate internal and external cybersecurity risks, retailers need robust solutions that not only allow them to secure their assets but also to consistently monitor and spot malicious activities. Cloud-based solutions can enable retailers to implement critical security measures that are difficult to penetrate.

Retailers can employ various technologies, including Zero Trust Architecture (ZTA)-based solutions, Virtual Desktop Infrastructure (VDI), and Desktop as a Service (DaaS). These latest technologies can help retailers strengthen their cybersecurity defenses and withstand internal and external risks.

• ZTA is a security framework that assumes no inherent trust within a network. It focuses on verifying every user and device attempting to access resources, regardless of their location or network. Retailers can adopt ZTA principles by implementing multifactor authentication, granular access controls, and continuous monitoring to ensure that only authorized entities can access sensitive data or systems.
• VDI allows retailers to host desktop environments on centralized servers and deliver them to end-user devices. By centralizing desktops, retailers can enhance security as data and applications are stored and processed within the data center rather than on individual devices. VDI provides better control over access, data protection, and the ability to quickly revoke access if a device is compromised.
• DaaS takes VDI a step further by moving the entire desktop environment to the cloud. With DaaS, retailers can leverage virtual desktops delivered over the internet, eliminating the need for on-premises infrastructure. DaaS providers handle infrastructure maintenance, security updates, and backups, enabling retailers to focus on core business activities while benefiting from a secure and scalable desktop environment.
• Managed Services: Retailers can leverage managed services from specialized providers to enhance their cybersecurity posture. Managed service providers (MSPs) offer a range of services, including 24/7 monitoring, threat detection and response, vulnerability management, and security incident handling. MSPs can help retailers navigate complex security challenges, leverage their expertise, and augment internal security teams.

It's crucial for retailers to adopt a holistic approach to cybersecurity. By continuously evaluating and enhancing their security posture, retailers can bolster their cybersecurity defenses and withstand internal and external cybersecurity risks more effectively.

Investing in cybersecurity technology isn’t a one-time thing. Instead, it — like other retail technologies — needs to be continuously reviewed and advanced. Outdated security solutions may not be enough to withstand modern sophisticated cyberattacks. Therefore, retailers must deploy the latest cybersecurity solutions that are designed to meet their specific needs.

Dominik Birgelen is the CEO of oneclick, a cloud platform for Everything as a Service (XaaS).