How to fortify retail tech with cybersecurity measures

Because every digital touchpoint, from Point of Sale systems to e-commerce platforms, is a potential vulnerability, cybersecurity is very important, especially in retail.

But how can businesses ensure they're investing intelligently? Let's examine some take home tactics and the costs of implementing robust cybersecurity measures in retail tech.

A Peek Into The Growing Threat Landscape in Retail

Retailers handle sensitive information in massive quantities, from payment information and personal details to inventory logs. In turn, that makes them prime targets for cyberattacks like ransomware, phishing, and data breaches.

Recent research has shown that cyberattacks can cause potentially millions of dollars in retail losses and irreparable reputational damage. While implementing cybersecurity measures is crucial, retailers also need to consider the associated costs. That's where ROSI comes in.

Return on Security Investments (ROSI)

Organizations can use ROSI to measure their cybersecurity expenditures, compare costs and possible damages, and determine the worth of their efforts. ROSI measures avoided losses and costs, such as reduced business disruption and lower regulatory fines.

For example, although implementing an effective cybersecurity framework for the first time will require significant resources, avoiding just a single major breach can ultimately save millions, especially for major retailers.

Fortunately, affordable cybersecurity solutions like those from Corsica Technologies can help retailers make better decisions by quantifying the potential benefits.

Five Things Retailers Can Do to Improve Their Cybersecurity Systems

Here are five ways to fortify retail tech with various cybersecurity measures:

1. Use Data Encryption

Data encryption ensures that should unwanted parties intercept data, anyone who does not have the key to the encryption system will not be able to read it. Retailers need to encrypt sensitive customer payment information, login credentials, and other personally identifiable or sensitive data in transit and at rest.

2. Use Multi-Factor Authentication (MFA)

MFA provides a second line of defense by challenging users to prove their identity using multiple methods, like a password and a temporary code texted to them. This greatly minimises the possibility of security breaches.

3. Keep Software PCI compliant and Security Vulnerability free

Retailers must get into the habit of regularly updating and patching all systems, including PoS devices, e-commerce platforms, and inventory management tools.

4. Train Employees on Cyber Safety

Human error is one of the biggest causes of data breaches. Frequent training can equip employees with the skills they need to spot phishing attempts, use strong passwords, and maintain security protocols.

5. Leverage AI powered threat detection systems

These systems utilise AI to analyse network activity patterns and identify anomalies, thus enabling the organization to identify suspicious activity and respond in real-time to limit the potential effects of an attack.

The Financial Impact of Cyberattacks in Retail

Cyberattacks have a financial impact that goes beyond the immediate losses. For instance, a breach is a quick way to undermine customer loyalty, which can have longer lasting impacts on revenue. Conversely, a robust cybersecurity system can improve a retailer's reputation and appeal to security-minded consumers.

Regulators are also cracking down on data security by creating legislation such as the GDPR and the California Consumer Privacy Act (CCPA). Such legislation ensures that cybersecurity goes from being an option or preventative measure to a legal requirement, with non-compliance resulting in substantial fines.

Conclusion

As retail tech continues to evolve, we can expect cyber threats to evolve along with it. By knowing and applying practical cyber security techniques and managing financial investment by using well priced cyber tools, retailers can protect their work, gain customer confidence, and ensure long-term success.