The retail industry is a prime target for cybercriminals due to its reliance on digital infrastructure and the vast amounts of sensitive customer data it processes. Retail cyber attacks are on the rise, including threats like data breaches, ransomware, and payment fraud, posing serious risks to business operations and consumer trust.
Cyber attacks in the retail industry have become more frequent and sophisticated. As a result, retail cybersecurity has never been more critical. To protect sensitive financial and personal information, retailers must adopt robust cybersecurity measures, including advanced threat detection, secure payment processing, and ongoing employee training. Strengthening cybersecurity in the retail sector is essential to mitigating risks and ensuring long-term business resilience.
Retail Cyberattacks: A Growing Concern
The retail sector is no stranger to cyberattacks and remains one of the top targets for bad actors. In recent years, retail cyber attacks have included the use of Rogue Devices, such as malicious USB devices, that act with malicious intent, for example – to conduct hardware attacks. Due to their discreet nature, allowing the attack to go undetected for long periods of time.
Point-of-Sale (PoS) systems are often networked with other systems, exposing the broader network to vulnerabilities. Once compromised, attackers can access sensitive data such as credit card numbers and personal information, escalating the damage.
Rogue Devices and Supply Chain Vulnerabilities
The supply chain provides another entry point for a cyber attack in the retail industry. Attackers might infiltrate a component of the retailer’s supply chain by manipulating devices in the production line. The Rogue Device can either target one of the suppliers, since they might have access to some of the retailer’s data. Or attackers might intend for the Rogue Device to pass directly to the end user in order to target the retailer directly.
Using Rogue Devices, like bad USBs, bad actors can conduct a variety of attacks, including a data breach. By exploiting PoS systems or other endpoints, attackers can conduct retail cyber attacks that involve data theft, financial fraud, or operational sabotage. Such attacks can be highly lucrative for cybercriminals who sell stolen data or demand ransoms.
Distributed Denial of Service (DDoS) and Ransomware Attacks
Additionally, Distributed Denial of Service (DDoS) attacks are common for the retail industry. As it allows attackers to overwhelm an e-commerce site, shutting down the company’s website and causing a loss of sales in addition to frustrated customers. The retail industry is also a frequent victim of ransomware attacks whereby the enterprise’s systems and files will be encrypted, and a ransomware payment will be demanded in exchange for a decryption key.
Both attack types exemplify the rising frequency of cyber attacks in the retail sector, requiring proactive defense strategies.
Consequences of Cyberattacks in Retail
When a retailer experiences an attack and a data breach happens, the perpetrator potentially victimizes millions of individuals. Malware, phishing, and other forms of cybercrime can lead to severe consequences. Hackers can sell this stolen information on the dark web, using it for nefarious purposes. Importantly, the financial consequences, both direct and indirect, can amount to millions of dollars, including fines, lawsuits, loss of business, cleanup costs, and other expenses. Business credibility is also impacted as consumers will have the impression that the organization is not sufficiently protected, leading to security breaches. Recovering from such reputational damage can sometimes be impossible, making it crucial to avoid it altogether.
Insider Threats in the Retail Industry
Insiders, are a very common threat to the retail industry due to the high employee turnover and the multiple points of vulnerabilities. Notably, there is little cybersecurity training. Which is not helped by the fact that there are many people handing aspects of the company’s business process. Insider threats are often act unwittingly because they are not aware of the risks that their actions pose to the company’s cybersecurity. Although unintentional, insiders can cause significant damage to the organization. A comprehensive cybersecurity training is a must in the retail industry.
Employees cybersecurity education, despite adding some improvements to an enterprise’s cybersecurity posture, is not enough to ensure full protection. Existing cybersecurity software solutions, let alone the human eye, cannot detect Rogue Devices. So, even with knowledge regarding the various risks, employees can still allow a bad actor to carry out a successful attack. As such, a Rogue Device Mitigation solution is essential.
Sepio’s Platform: Mitigating Retail Cyberattacks
Sepio’s platform offers retailers the visibility and control needed to combat cyber attacks in the retail sector, especially those involving hardware. By detecting and blocking Rogue Devices at the physical layer, Sepio prevents threats before they cause harm.
The solution builds a digital fingerprint of every hardware asset (IT/OT/IoT), identifying devices by their true identity, not just their claimed identity. This granular visibility supports effective zero trust enforcement and strengthens the organization’s security posture.
Physical Layer Defense and Zero Trust Enforcement
With Sepio’s Asset Risk Management (ARM) platform, retailers can enforce zero trust hardware access policies. Any unapproved or suspicious device is blocked in real-time, ensuring comprehensive hardware attack prevention.
Retailers gain full visibility into every known and unknown (shadow) asset connected to their infrastructure. This level of control is key to preventing hardware-based threats and supporting overall business resilience.
Gain Control of Your Cybersecurity Risks
With cybercriminals targeting the retail industry more aggressively than ever, it’s time to level up your cybersecurity strategy. Sepio’s patented technology ensures that retail cyber attacks, including those using Rogue Devices, are stopped before damage occurs.
See every known and shadow asset. Safeguard your operations. Schedule a demo today!
