Technology is Changing the Retail Consumer Experience. Can Cyber Keep Up?
Retailers are embracing generative artificial intelligence, social media, and augmented reality to foster competitive differentiation, earn new customers and keeping existing ones. The balancing act between innovation and risk has never been more complex. Consumers demand convenience and personalization at unprecedented levels — driven by cutting-edge technologies — but these advancements often introduce new vulnerabilities.
Trustwave’s latest Retail Sector Risk Radar Report underscores the growing urgency for retailers to reassess their security strategies in light of emerging threats, from sophisticated phishing schemes and ransomware attacks to supply chain weaknesses. To stay ahead, retailers must adapt quickly, securing their operations without compromising the customer experience.
Phishing: A Persistent and Adaptable Threat
The most common method for cybercriminals to gain entry to retail systems is through phishing, responsible for 58 percent of initial breaches in the retail sector. By crafting convincing messages that impersonate trusted sources — e.g., fraudulent supplier emails and fake customer inquiries — attackers can often fool even the most vigilant employees into providing credentials or clicking a malicious link or attachment.
Email security tools can intercept these deceptive messages before they reach inboxes. Meanwhile, ongoing employee cybersecurity training paired with phishing simulations equips teams to identify and respond to threats effectively. When employees learn to think like hackers, they become a crucial line of defense in an increasingly dynamic threat environment. By reducing successful phishing attempts, retailers not only prevent system intrusions but also protect sensitive customer data, reinforcing trust in their brand.
Malware and Ransomware: Retail’s Big Disruptors
Once cybercriminals gain access through phishing, they use stolen credentials to move laterally across the network, targeting high-value systems such as point-of-sale (POS) terminals, inventory databases, and payment processing systems. They may install malware to harvest credit card data, deploy ransomware to encrypt files and demand payment, or maintain persistent access for future attacks. Stolen customer and transaction data are often sold on dark web marketplaces or used in financial fraud.
Trustwave researchers found ransomware attacks against U.S. retailers accounted for 62 percent of incidents globally in 2024. Beyond the financial cost of ransom payments, businesses also face reputational damage and regulatory consequences when sensitive customer information is compromised. Cybercriminals are constantly refining their tactics, embedding malicious code in a range of essential platforms like social media management tools and communication systems, making it clear that retail leaders must consciously balance their use of innovative tools with strong security measures.
Retailers can counter these threats by implementing advanced endpoint monitoring and establishing strict access controls. It’s important that retailers stay on top of regular software updates to minimize their risk of security vulnerabilities and keep up with the latest security notices, emerging cybercriminal tactics, and persistent threats to strategically strengthen defenses.
Addressing Supply Chain Vulnerabilities
Modern retailers’ heavy reliance on numerous vendors and extensive supply chains creates significant third-party cybersecurity risks. Supply chain breaches, such as the cyberattack on Ahold Delhaize in November 2024, illustrate the cascading effects a single vulnerability can have. This incident led to supply chain disruptions and product shortages, interrupting services across several of its U.S. grocery chains, including Stop & Shop, Hannaford, and Food Lion.
Beyond operational disruptions, a supply chain breach can expose customer payment information and personal details, damaging consumer confidence and brand reputation. Retailers must take a proactive and rigorous approach to vetting vendors by conducting thorough cybersecurity audits, establishing contractual security obligations, and encrypting shared data.
Ensuring Cyber Resilience
Trust is just as valuable as innovation. By educating employees on phishing tactics, prioritizing endpoint security, and strengthening visibility and control across supply chains, retailers can take a proactive stance against evolving cyber risks and fortify relationships with consumers. Retailers that embed security into their business strategy will thrive — after all, safety and convenience should go hand in hand.
Kory Daniels is the CISO of Trustwave, a global cybersecurity and managed security services leader.
Kory Daniels, CISO at Trustwave, is an innovator and leader in cyber threat detection program transformation. Over the last 20 years, Kory has overseen and supported the evolving requirements in helping organizations define, measure, and accelerate achieving their security maturity targets with everything from fast growing midmarket firms to F500 global enterprises.
