The influx of customers and transactions during the holiday season may be great for business, but it also means that retailers are particularly vulnerable to cyberattacks. From phishing scams to data breaches, cybercriminals are constantly looking for ways to take advantage of the holiday rush. Here are five common cyber risks that retailers should be aware of during the holidays.
Ransomware attacks
Ransomware is one of the most disruptive cyberthreats, especially during the high-traffic holiday season. In a ransomware attack, cybercriminals encrypt sensitive files, halting the victim’s operations until they pay the ransom. For retailers, an attack like this could mean lost sales, compromised data, and damaged reputation.
One countermeasure against ransomware attacks is to regularly back up critical data and store it offline so files remain safe even if the entire network is compromised. Keep all software up to date to close security gaps that ransomware may exploit. You should also train employees to recognize suspicious emails, such as those with attachments or links from unknown senders, which often deliver ransomware.
Phishing scams
Phishing attacks spike during the holiday season, with scammers impersonating familiar brands and retailers. These fake communications may trick employees into revealing credentials or customers into entering sensitive payment information, leading to data theft or unauthorized purchases.
To defend against these scams, educate employees and customers on common phishing tactics, such as fake login pages or emails with urgent requests. Use advanced spam filters to catch these messages, and implement multifactor authentication for an extra layer of security.
Point-of-sale (POS) malware
Cybercriminals use POS malware to intercept card data during transactions, especially in physical stores. This threat can damage a retailer’s reputation and result in significant losses if customer data is stolen.
POS systems should be properly secured, monitored, and regularly updated with the latest security patches to prevent malware attacks. Consider implementing a secure payment platform that encrypts all data in transit and tokenizes card information for added protection. Also, train employees on how to spot suspicious devices or activity near point-of-sale terminals, as criminals often use skimming devices — small devices attached to a card reader that capture data from the magnetic stripe on credit and debit cards.
Bot attacks
Bot attacks can disrupt a retailer’s website, causing inventory shortages, delaying checkout times, and flooding systems with fake accounts. Cybercriminals may use bots to scoop up limited stock for resale or overwhelm servers during peak traffic periods, causing poor user experience.
To handle bot threats, deploy bot mitigation tools to filter out automated traffic and allow real customers to shop. Setting purchase limits on high-demand items can also prevent bots from buying everything in stock. Moreover, regularly monitoring website traffic for unusual patterns (e.g., high traffic from a single IP address) can help identify and prevent bot attacks.
Insider threats
Insider threats are one of the most difficult cyber risks to prevent because they come from within an organization. Such threats could be anything from a disgruntled employee stealing customer data or sensitive information to unintentional mistakes that compromise security (e.g., leaving a computer unlocked). Insider threats are not uncommon during the holidays, as temporary employees may not have the same level of security awareness or loyalty as regular employees.
The most effective way to mitigate insider threats is through proper employee training and implementing strong security protocols. This includes regularly changing passwords, restricting access to sensitive data, and monitoring employee behavior for any unusual or suspicious activity. It’s also worth performing background checks on temporary employees to ensure they do not have a history of malicious behavior.
Contact us Today
Staying safe online should be a priority this holiday season, as a security breach could take away focus from what matters most. With the tips above and our team by your side, you can keep your business secure and protect your customers’ data. Contact us today to give yourself peace of mind and secure your retail business this holiday season and beyond.