Tips on how to solve cybersecurity challenges and pain points in retail.
Read time: 8 minutes
As the retail customer experience evolves, you’re enhancing the shopping experience by expanding your digital footprint, deploying more complex technology, and adopting more cloud-based services.
Now more than ever, it’s critical to proactively monitor, manage, and mitigate potential cybersecurity attacks before they lead to costly disasters.
The cost and impact of a retail data breach or cybersecurity problems in retail
According to the 2022 IBM Cost of a Data Breach Report, the average global cost of a retail data breach in 2022 was $3.28 million. What’s more, the report indicates that 60% of the organizations studied were forced to raise the price of their products or services because of the breach.¹
The costs involved in retail data breaches or cyberattacks are jaw-dropping. For example, a popular convenience chain recently made headlines for paying $8 million to end an investigation into a credit card breach affecting about 34 million customers.
Data breaches lead to indirect and long-term effects like negative press, loss of trust, and lost business from once loyal customers. Keep in mind the costs of a data breach go beyond funds possibly stolen from the company or its shoppers, but also the financial responsibility involved, such as:
Attorney fees should a class-action suit occur
Compensating customers either with cash or credit and identity monitoring services
Repairing the breach and preventing future cyberattacks
Whether your retail business accelerates via brick-and-mortar shops or online, each new store or website becomes a sitting duck waiting for a breach or cyberattack. In this article, we’ll look at three cybersecurity pain points retailers face and ways to solve them.
1. Limited IT resources
The labor shortage first fueled by the pandemic has extended well into 2022, leaving many employers desperate to fill open positions. Everyone knows how hard the retail industry has been hit. According to PeopleReady's U.S. Workforce Trends Quarterly Report, over 1 million new retail jobs were posted during the first quarter of 2022.²
Faced with a massive shortage of retail workers – cybersecurity employees are always in high demand. The ISACA State of Cybersecurity 2021 Report says 16% of respondents admit it takes six or more months to fill an IT position. Unfortunately, an average of 50% of hiring managers surveyed also said they aren’t confident that applicants are well-qualified.³
As retailers continue to innovate and enhance the customer experience, they’re deploying drones, robotics, self-checkout, and more. Many talented IT staffers are needed to ensure that technology is operating correctly and that networks and data are secured.
In January of 2022, Forbes highlighted the IT staff shortage in an article titled, The Widening Cybersecurity Talent Gap and Its Ramifications In 2022:“Over the past few years, one issue has remained prevalent and will continue to be as we head into 2022:
a cybersecurity manpower shortage and talent gap. This is becoming a more recognizable problem as companies come to grips with the reality of cyberattacks, crime, and the havoc they’re bringing on their victims. These aren’t just big names covered by the media; they're businesses next door that might’ve already become a cybercrime statistic.”⁴
Some retailers have corporate staff working remotely to help with staffing shortages. Remote devices that aren't correctly connected or equipped with security capabilities can leak sensitive account information. Hackers can quickly gain access to your network through a remote connection and deploy ransomware or steal valuable customer data, resulting in a breach and loss of business operations.
Solution: Partner with a managed cybersecurity service company
By outsourcing technology services to reputable IT organizations, retailers can enable secured remote and hybrid workers.
Working with a managed cybersecurity services company or third-party cybersecurity service can strengthen enterprise IT teams. And in an era when endpoint and network security extend beyond traditional perimeters, 24/7/365 monitoring and reporting together with advanced technologies give you better-secured data, compliance, and peace of mind.
Cybersecurity services like vulnerability testing and security assessments can deliver valuable information and boost your retail chain's security posture. At the same time, other tools like identity access management (IAM) simplify how you manage and protect business information. But do you have the resources and staffing?
By outsourcing IT, you can:
Improve scalability allowing you to adapt to change quickly
Remain competitive with state-of-the-art protection other retailers have access to
Upgrade tech support for your onsite and remote employees
Optimize your team and gain much-needed guidance on IT infrastructure solutions
Minimize downtime with IT experts available 24/7
Gain added cybersecurity protection with a dedicated team that can identify vulnerabilities and mitigate threats
Outsourced security and IT professionals have you covered, allowing you more time and energy to focus on your customers, products, services, and retail marketing.
When it comes to cybersecurity for retail, we've got your back! Connect with one of our representatives today.
- PeopleReady's U.S. Workforce Trends Quarterly Report, https://www.prnewswire.com/news-releases/hospitality-and-retail-each-saw-over-1-million-job-postings-in-q1-2022-new-report-by-staffing-giant-peopleready-301542861.html
- ISACA State of Cybersecurity 2021 Report, https://www.isaca.org/go/state-of-cybersecurity-2021
- The Global Risks Report 2022 17th Edition, https://www3.weforum.org/docs/WEF_The_Global_Risks_Report_2022.pdf
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