The digital transformation has helped the retail industry to grow at a rapid pace. Many retailers have started leveraging e-commerce market to increase their customer base and boost growth. However, with technological advancements cybersecurity risks have also grown manifolds.
The retail industry processes troves of customer data with personal as well as financial information, which makes them a viable choice for hackers. These hackers can easily bypass the primary security barriers like user authentication and firewalls to launch various sophisticated attacks on an organization. Here are some of the emerging cybersecurity threats for the retail industry:
Return and Refund Fraud: Most of the retailers have a return policy at their online store. This policy helps retailers to gain the trust of their customers. At the same time, the bad actors have also started to use the same policy to dupe a retailer. The hackers use fake receipts to apply for refunds for the products that were never purchased. The cyber criminals also use a stolen credit card to purchase a product and request a refund on another credit card.
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Supply chain attacks: According to a recent study, more than one-third of all retail cybersecurity breaches are caused because of third-parties. Many retail giants implement the best in class security measure to protect their network. However, the hackers can use the third party connections to breach into a company’s network. Hackers use app integration to gain access to a company’s network and rob them of their valuable data.
IoT Vulnerabilities: The adoption of IoT technology has skyrocketed in recent years, which has increased the number of endpoints for retailers. The increase in the endpoints has resulted in an enhanced cybersecurity risk for organizations as hackers have more ways to enter into a network.
Ransomware Attacks: Ransomware attacks are one of the most prevalent attacks as it allows hackers to gain quick monetary rewards while ensuring that the identity of the hacker remains concealed. The retail industry has also suffered massively because of the proliferation of ransomware attacks.