CONNECTION BETWEEN RETail, fashion and cyber security

Sneak peek into retail and cyber security risks. To access further information join AFRG NETWORK!

Industry Risks:

The Retail and Hospitality ISAC (a.k.a. RH-ISAC) recently reported on the latest cyber threats targeting the industry. Overall, threat actors are employing advanced technologies such as AI, while credential theft, ransomware, and phishing remain the top threats impacting the industry. As part of the RH-ISAC report analysis, personally identifiable information (a.k.a. PII) still remains the most commonly targeted data type. Overall, retail incidents rose from 404 incidents to 725, while confirmed breaches rose from 191 to 369. Threat actors are increasingly using vulnerability exploitation as part of gaining initial access into an organisation’s environment, and opting for generative AI tools to increase fraud.

Fraud Risks

Threat actors can manipulate vulnerabilities in a retail company's payment systems—both in physical stores and online platforms. This could result in compromised transactions or financial data loss, posing threats not only to the company's revenue but also to consumer trust in online and offline purchasing experiences.

Supply Chain Exposures

Cyber attackers leverage vulnerabilities in the extensive and interconnected supply chain of the retail industry, resulting in regulatory penalties, financial setbacks, and damage to brand reputation.

Operational Disruptions Impacting Productivity

The rising concerns with geopolitical issues, increasing global competition, and the convergence of IT, OT, and Cloud environments in labs, manufacturing, & distribution not only escalate risks but also threaten productivity. These factors enable cyber attackers to disrupt operations for economic gain (e.g. ransomware), posing significant threats to overall productivity.

Physical Security & Insider Threat

Attackers might exploit physical security weaknesses in retail stores by using tactics like unauthorised access, theft, or tampering with systems to gain entry to sensitive areas, compromising customer data or valuable assets.

Data Privacy and AI Risks

The risk of data breaches and AI-related vulnerabilities is critical for retailers, as any compromise in safeguarding consumer information not only damages trust but can also lead to legal repercussions affecting customer loyalty and the company's market standing.

Data Breaches

The primary risk facing retailers is data breaches. An unsecured broadband connection can serve as an entry point for cyber criminals to access and steal customer data.

Downtime and Operational Disruptions

Cyber attacks like Distributed Denial of Service (DDoS) can overwhelm a retailer’s network, leading to downtime. For a retail business, even minimal downtime can result in significant sales losses and disrupt customer service.

Phishing and Social Engineering Attacks

Employees in retail can be targeted by phishing schemes, potentially leading to unauthorised access to sensitive systems. Secure broadband can include solutions to filter out harmful traffic and raise flags about suspicious activities.