While retailers keep opening new stores, hackers continue mastering their skills. Unfortunately, this means that even more sophisticated cybersecurity challenges are yet to come. Cyber attacks are no longer a threat only to the IT department but rather to the whole enterprise.
A lot of businesses have already increased their retail security budgets to avoid breaches. Today, companies have to focus more on retail security and loss prevention than customer satisfaction if they want to comply with data processing regulations. The task isn’t the easiest, but with the right approach, it’s absolutely doable.
Chief information security officers (CISOs) face many challenges while trying to prevent stealing products. Fixing system vulnerabilities should be part of their daily tasks. They should also monitor the latest tendencies, work on retail security solutions, and implement new machine learning technologies.
So what cybersecurity challenges and trends should the retail industry expect in 2020? Read on and learn how to build an effective CISO strategy for 2020 to protect your business.
Overall statistics and threat localization
According to the Cyber Security Mid-Year Snapshot 2019 by Cyber Security Hub, critical infrastructure, phishing scams, and email takeovers are the three most dangerous retail security challenges. That’s why enhancing enterprise security is high on the agenda for many businesses small and large.
Source: Cybersecurity mid-year snapshot 2019
In 2019, Verizon reported over 53,000 incidents and 2,216 confirmed data breaches. If a company like Verizon can become a victim of hackers, every single business should put risk management front and center. Here are the most common cyber attacks Verizon has faced in the last year:
- Credential phishing – 30.43%
- Malware (besides ransomware) – 21.74%
- Ransomware – 13.04%
- DDoS attacks – 10.14%
- BEC/wire transfer fraud – 7.25%
- Account takeover – 5.80%
- Malicious or unsafe apps (cloud) – 4.35%
- Malicious or unsafe apps (mobile) – 1.45%
- SQL injection – 4.35%
- Man-in-the-middle attacks – 1.45%
Looking at the data, we can see that hackers hit retail security from every angle. Almost 75% of all attacks are carried out either through denial of service, web applications, or payment card skimmers.
The AV-Test Institute registers more than 250,000 new malicious programs every day.
Source: AV Test – Malware Statistics
There’s no doubt that retail security is undergoing some very troubling changes that require urgent action from CISOs and business leaders.
Why is maintaining security and compliance so challenging?
When it comes to managing a retail business, choosing a payment processing platform is unavoidable. If you want your business to grow, you have to be ready to process cashless transactions and protect your customers’ private information.
This is where the real struggle begins. As a retailer, you’ll need to comply with the Payment Card Industry Data Security Standards (PCI DSS) to accept credit card payments. This means your company has to pass a PCI DSS compliance audit and obtain PCI DSS certification. It isn’t the easiest thing, mainly because you need security experts to control the whole process.
Another significant challenge for retailers working on the European market is complying with the General Data Protection Regulation (GDPR.) This regulation requires so many security measures that a lot of retail store owners fail to understand how serious it is. Often, that’s due to the difficulty of updating legacy systems to comply with the GDPR.
Sometimes, it’s even due to the pure desire to earn money without caring about the security of customer data. Our team knows all the ins and outs of how to make the compliance process more manageable. See for yourself in our recent case study.
Money is often one of the main reasons businesses are lax about cybersecurity. But is it worth the risk? Even one data breach can harm your clients and organization.
A lack of qualified people who can protect retail companies from the most common types of cyberattacks further complicates compliance. It’s nearly impossible to keep up with all of the updates in the cybersecurity industry unless you’re fully immersed in it.
Top 5 cybersecurity trends retailers should keep an eye on in 2020
Due to the increasing number of cybersecurity threats, the retail industry will only become more prone to data breaches and skillfully crafted cyberattacks. However, if you know what to expect, you can be well-armed with security solutions to protect your enterprise from retail theft.
We’ve picked the top five cybersecurity predictions for 2020. Let’s see what awaits retailers next year.
1. Same threats, different approaches
While new cybersecurity threats are coming, companies should still pay attention to existing vulnerabilities throughout 2020. Instead of leaving known vulnerabilities untouched, treat them as being just as dangerous as newly discovered ones.
It’s always more costly to fix something later, so protect your enterprise security by solving even minor issues.
2. Risk management
The tendency to increase cybersecurity budgets isn’t going to slow down, as was suggested in Cyber Security Hub’s 13 August webinar. That means there will be more security awareness trainings inside enterprises.
In 2020, retail companies will start prioritizing cybersecurity by strategically planning retail theft prevention.
3. Data protection
With increasing cloud adoption, data protection will become even more of an issue. While the cloud is the future of ecommerce, it also brings unknown bugs and a high risk of mistakes. The newer the technology, the bigger the chance hackers will find out how to breach it before it can be fixed.
That’s why data protection will remain one of the top priorities for retailers in 2020. It will also push enterprises to create more data security governance programs to prevent data breaches in private clouds.
4. GDPR compliance
Once retailers start processing customer information, they have to start complying with GDPR. As we mentioned, the GDPR applies if your retail business deals with the European market.
Even though complying with GDPR is time-consuming and requires legal assistance, it has to be done to avoid lawsuits.
5. Application security self-testing
In the new year, companies working with DevOps will be securing their applications by adopting security self-testing, self-diagnosing, and self-protection technologies. This will help them assess new vendors and detect possible security threats.
Retail companies need to solve existing security problems, follow new trends, and hire skillful staff to take care of possible cybersecurity attacks. If they don’t, they’ll make hackers’ lives much easier.
To-dos and must-haves for CISOs
CISOs are responsible for making risk-based decisions and coming up with the most efficient cybersecurity strategies. Here’s what they should do to have a clear picture of what’s on the cybersecurity horizon and be able to protect their enterprises from stealing products:
Now CISOs are having to flex different muscles, work with a broader set of stakeholders and build an increasingly diverse team to handle different areas of concern.
- Engage stakeholders in cybersecurity discussions and explain the importance of cybersecurity protection.
- Effectively inform business leaders about cybersecurity threats and how challenging it might be to fix them at later stages.
- Encourage bigger investments in retail cybersecurity.
- Strive for passwordless authentication.
- Provide essential cybersecurity skills training for employees.
The role of CISO isn’t easy, but it’s critical for the wellbeing of any digital enterprise. Since cyberattacks are becoming more sophisticated, CISOs have to plan strategically and ensure they’re taking advantage of emerging tools and countermeasures.
How deep learning algorithms can assist in identifying security risks
Artificial intelligence (AI) and machine learning (ML) algorithms can seemingly perform miracles. Although AI and ML technologies are relatively new, they promise many possibilities for identifying security risks.
We must recognize that although technologies such as machine learning, deep learning, and AI will be cornerstones of tomorrow’s cyber defenses, our adversaries are working just as furiously to implement and innovate around them.
ABI Research predicts that machine learning in cybersecurity will increase big data, intelligence, and analytics spending to $96 billion by 2021.
But how exactly do deep learning algorithms help retailers?
- Advanced AI technology can be used to detect cybersecurity threats that are not well suited to their professional counterparts.
- Machine learning can empower the retail industry with data that CISOs can use to prevent retail theft.
- While deep learning in cybersecurity cannot fully substitute humans, it opens up enterprises to a whole new world of possibilities.
- AI can eliminate a lot of human work by spotting and classifying cybersecurity issues.
- The combination of machine learning and rule-based analysis will push the development of intelligent reasoning and analysis of security threats.
- Detection, prediction, and relationship diagram algorithms will play a massive role in preventing retail theft.
Of course, machine learning algorithms cannot fully automate the process of malware and threat detection. Nevertheless, this technology promises a bright future for retail network security. Today, retailers can use sophisticated tools and algorithms to detect many different types of threats.
The retail industry has become one of the easiest targets for hackers. With the growing number of ecommerce stores, retail security is at stake. It’s no wonder companies have started spending more on data protection and compliance with regulations such as PCI DSS and GDPR.
Cybersecurity trends continue to evolve and require innovative solutions. However, retail enterprises still need to fix existing issues before moving on with their theft prevention strategies.
CISOs should pay attention to deep learning algorithms and learn how to use them to their advantage before hackers do. Even if AI cannot fully substitute humans, it can be of great help when detecting and identifying malware and other types of cybersecurity threats.