Increased number of cyberattacks on retail businesses by 20% in the previous year

In the rapidly evolving landscape of retail, daily operations have seen significant changes over the past few years. Topics such as shrink and pricing are being re-examined, but a more pressing concern has emerged - cybersecurity.

According to a recent survey conducted by VMWare Carbon Black, forty percent of retail organizations admitted to losing revenue in 2019 due to cyberattacks. This trendline suggests that retailers are taking a closer look at their cybersecurity measures.

The survey involved twenty chief information security officers from global retailers, who collectively reported an alarming increase in attempted cyberattacks during the holiday season last year, with a twenty percent rise noted. The report urges retailers to move from a reactive to a proactive stance in managing cyber threats.

In response to this growing concern, forty percent of the companies surveyed plan to increase their security budget by at least ten percent in 2020. Moreover, more than half of the retailers are planning to increase their cybersecurity staff in the same year.

The survey also highlighted the importance of protecting "crown jewels," such as customer data, financial information, product data, or growth plans. In fact, two-thirds of retailers reported being targeted by a ransomware attack in the past year.

Individual customers are also encouraged to play their part in maintaining cybersecurity. With an estimated 6,000 active e-commerce phishing sites, according to NormShield, it's crucial to keep personal data safe while navigating the internet.

Notable incidents include Macy's announcing a security breach in November 2020, potentially leaking customer payment information, and Warby Parker revealing in January 2020 that 198,000 of its customer accounts were targeted by unauthorized parties.

Earlier this year, Neiman Marcus paid out $1.5 million to settle a 2013 data breach, underscoring the long-term consequences of inadequate cybersecurity measures.

It's worth noting that in 2020, the responsibility for cybersecurity at these global retailers was generally handled internally by their own corporate cybersecurity teams, rather than centralized authorities. For instance, in Germany, the Federal Office for Information Security (BSI) provides support to both public and private sectors, but does not take direct control of private company cybersecurity.

This information is part of a trendline discussing strategies for operational excellence in retail, highlighting the growing importance of cybersecurity in the retail industry. As retailers continue to adapt to changing times, it's clear that robust cybersecurity measures will be a crucial component of their success.

Increased number of cyberattacks on retail businesses by 20% in the previous year