Christmas shopping, Boxing Day sales, and New Year partying are busy times for retailers and shoppers – and for cybercriminals trying to exploit them. So, it’s crucial retailers have the best cyber insurance working for them, to keep themselves and their customers safe.
“Amidst the holiday hustle and bustle, retailers must not lose sight of the importance of implementing the necessary safeguards from cybercriminals, who take advantage of the increase in retail transactions at this time of year,” said Brett Anderson, breach response services manager at
Beazley.
“Hacking into retail systems, launching phishing and social engineering attacks, and denying access to websites in order to steal valuable customer data or extort cash are all actions these criminals take – and it’s paying off for them.”
As marketing activities ramp up, and seasonal hires are made, as well as additional security on the floor, retail managers can think they’re prepared for the criminal rush – but they also need to protect themselves and their customers from cybercriminals, those crooks you can’t see shoplifting or catch on security cameras.
Hackers exploit the vulnerabilities of retailers by hacking into retail systems, launching phishing and social engineering attacks, and by denying access to websites in order to steal valuable customer data or extort cash. And they can use the busy holiday period as a cover to sneak on while retailers may be distracted.
Many retailers consider point-to-point encryption (P2PE) to be the ideal defence against being scammed. P2PE is a combination of secure devices, applications and processes that encrypt data from the point of interaction (for example, at the point of swipe or dip) until the data reaches the solution provider’s secure decryption environment.
“Oftentimes, retailers consider point-to-point encryption to be the ideal defence against cybercriminals, but point-to-point encryption does not prevent hacking, malware attacks, phishing or social engineering, or simple human error,” Anderson said.
“This is why we recommend retailers transfer part of that risk to an insurance carrier that can give them comprehensive cyber coverage and a suite of proactive and reactive services. Whether it’s before the unthinkable or after the inevitable… cyber services help retailers prevent and respond to data incidents.”
Retailers present a dream target for hackers, as they hold so much of the data that’s considered valuable to cybercriminals. Online shopping, loyalty programs, digital marketing, and electronic receipts, are a goldmine for hackers, because they can hold, among other things, employee and membership/rewards data, as well as credit card information.
As retailers continue to introduce new technologies into their online sales channels, they need to remember to also invest in people and processes, to make sure their staff are savvy enough to recognise a potential threat when they see one.
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