Thales | Cloud Protection & Licensing Solutions
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Thales | Cloud Protection & Licensing Solutions
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As Black Friday and Cyber Monday loom, the stakes for retailers extend far beyond enticing deals and record sales. With retail sales during 2024 set to grow to between $5.23 trillion and $5.28 trillion, the risk of a data breach extends beyond immediate financial losses. According to the latest Thales Consumer Digital Trust Index, over a quarter (26%) of consumers have abandoned a brand in the past 12 months due to privacy concerns.
This dual threat of financial and reputational harm makes robust cybersecurity not just a technical necessity but a critical business imperative. As consumers demand both seamless experiences and ironclad security, retailers must navigate a precarious tightrope to protect their bottom line and brand integrity.
Top Risks for Retailers (and their Customers)
Understanding the most common cyber risks is the first and most essential step for retailers to protect their businesses and customers.
Phishing and Fraud
Bad actors can defraud customers out of their money, financial details, and other sensitive data by using deception and social engineering. These attacks can be launched through various vectors, including email and QR codes, and often involve the attacker impersonating a trusted individual or corporation to request money or data from the target.
Recently, cybercriminals have increasingly used artificial intelligence (AI) and automation to increase the volume and efficacy of their attacks. By using AI to compose phishing messages, bad actors can avoid many of the telltale signs that indicate a scam, such as spelling and grammar errors and awkward phrasing. They can also automate sending these messages to reach a wider audience of targets and increase their payout. These criminals are usually after insecure passwords; therefore, the use of modern passwordless authentication methods, like passkeys, is a great way to prevent these scams from happening.
DDoS and Web Application Attacks
Retailers also face threats to their infrastructure - websites and apps - that could disrupt their business operations, leading to loss of sales and customer trust. The 2024 Imperva DDoS Threat Landscape Report shows that the first half of this year saw 111% more DDoS attacks than the same period in 2023. Automation and easy access to DDoS tools have made it simpler than ever for cybercriminals to launch these attacks.
APIs are vital to retailers, enabling enhanced customer insights, operational efficiency, and improved value propositions. However, they're increasingly targeted by cybercriminals. Imperva’s The State of API Security in 2024 Report highlights that 27% of API attacks exploit business logic, while 10% lead to data leakage. With heightened traffic during Black Friday and Cyber Monday, these vulnerabilities become more pronounced. Retailers must prioritize API protection to safeguard their operations and customer data, focusing on early detection of anomalies amidst the holiday shopping surge.
Data Breaches
During the holiday season, retailers experience a significant surge in transactions, both online and in-store. This flux creates a prime opportunity for cybercriminals to target sensitive customer information, including credit card data, personal information, and intellectual property. According to a recent study, the average cost of a retail data breach in 2024 will reach $3.48 million, representing an 18% increase compared to 2023.
The Thales 2024 Data Threat Report indicates that almost half of all businesses have been breached at some point in their history, making the need to strengthen retail data security more crucial than ever. Retailers handling credit and debit card transactions must comply with the PCI DSS 4.0 requirements, such as secure processing, storage, and transmission of cardholder data. Retailers must also prioritize the protection of sensitive customer data, including credit card information, across all systems—from physical stores to back-end processing.
Account Takeovers
Imagine a burglar not just breaking into your home but changing the locks and assuming your identity. This is the digital equivalent of an Account Takeover (ATO) attack, a growing menace in the cyber landscape. The 2024 Imperva Bad Bot Report paints a stark picture: ATO attacks have surged by 10% year-on-year, with a staggering 11% of all login attempts across the internet now linked to these nefarious activities.
Cybercriminals, armed with sophisticated bots, are relentlessly battering the gates of corporate accounts through techniques like credential stuffing. Once inside, the damage can be catastrophic - from data theft and unauthorized purchases to complete account lockouts.
What's more alarming is the scale of this threat. Nearly one-third of all internet traffic now consists of malicious bots, many of which are deployed in these ATO attempts. For retailers, this presents a dual challenge: protecting their own 'houses' while ensuring their customers' digital 'homes' on their platforms are equally secure.
Strong Security = Consumer Confidence and Trust
It is essential to understand that cyber incidents hurt customer trust. According to the Thales Consumer Digital Trust Index 2024, 89% of consumers expressed concerns about sharing personal information with online retailers, citing security and privacy as primary concerns.
For customers to achieve the best experience for Black Friday and Cyber Monday, retailers must take essential measures to protect sensitive customer and enterprise data. The Digital Trust Index offers insight into the consumer mindset regarding the privacy and security of their data in digital experiences.
- The vast majority (89%) of respondents are comfortable consenting to organizations using their data, with a few caveats for trust and security: up to 87% expect businesses (including retailers) to meet a basic standard of data security.
- The growth of AI has led to security concerns, as 57% of respondents cite worries about what it means for their data privacy.
A Call to Action for Retailers This Shopping Holiday Season
As Black Friday and Cyber Monday approach, the stakes for retailers have never been higher. The threat landscape is evolving rapidly, and the cost of a breach extends far beyond immediate financial losses to long-lasting reputational damage. Now is the time for decisive action.
Imperva, a Thales company, offers seven critical cybersecurity tips tailored for this holiday shopping frenzy. Their comprehensive e-commerce protection solutions are designed to shield your business from the trifecta of DDoS attacks, API vulnerabilities, and malicious bot activities that spike during this period.
But protection shouldn't stop there. Thales provides a robust portfolio of retail data security solutions, ensuring you're not just compliant with PCI DSS 4.0 but ahead of the curve. From safeguarding cardholder data to implementing strong authentication for both staff and customers, the Thales layered defense strategy offers a fortress of protection.
Don't let cybercriminals turn your Black Friday into a dark day for your business. Act now:
- Assess your current security posture against holiday-specific threats.
- Implement Imperva's seven cybersecurity tips immediately.
- Explore the Thales comprehensive security solutions to create an impenetrable defense.
- Train your staff on heightened security protocols for the shopping season.
- Develop a rapid response plan for potential breaches during peak traffic times.
Remember, in the world of cyber threats, being prepared is not just an option—it's a necessity. Secure your success this holiday season with Thales and Imperva. Your business's future may depend on the actions you take today.