The retail sector is no stranger to data breaches. With customer data such as payment information, email addresses, and personal information stockpiled, this data attracts bad actors. It’s important for retailers, and their vendors, to implement strong cybersecurity policies to keep customer data secure. This week, we’ll talk about the potential threats that IoT and the supply chain pose and how retailers can combat cyber threats.
Retailers use a variety of vendors throughout the supply chain that can pose potential risk. Six years ago, a major U.S. retailer was the target of a data breach that affected over 41 million consumers. The source of the breach? An HVAC repair company. An attacker stole the password of an employee of the contractor and used that access to infiltrate the retailers’ network.
This is just one example of a supply chain breach. These breaches begin with a supplier and end with the victim. Retailers must ensure that the vendors they work with uphold the same cybersecurity practices to mitigate risk.
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Data Compromises are Common in the U.S.
October is National Cyber Security Awareness Month (NCSAM) and highlights the threats, trends, and technologies impacting security today. The retail sector has been heavily impacted by the rise in cybercrime which showcases the importance of threat education and prevention. According to the recent Deloitte Consumer Privacy in Retail Survey: The Next Regulatory and Competitive Frontier, 1 in 3 Americans have already been affected by a data breach.
The study also found that nearly half of consumers felt they have little to no control over their personal data and 86 percent believe they should be able to opt-out of the sale of their data. Consumers are only willing to share their data if it has a benefit to them such as coupons or special offers, but they are hesitant to trust retailers with this valuable information.
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The retail sector is embracing the Internet of Things (IoT) and the technology is expected to reach more than $35 billion by 2020. Used to enhance customer experience, drive growth, and reduce costs, it’s a great investment, but it can also pose a cyber risk. IoT can connect systems throughout a store and aggregate data, meaning security is of the utmost importance.
How can retailers ensure their data is protected? With a combination of trusted vendors, safe cyber practices, and good cyber hygiene.
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