Retailers face growing cyber threats, particularly through their IT systems and email. These systems, integral to business operations, can become vulnerable entry points for cybercriminals seeking to exploit customer data. Understanding these threats and implementing robust defences is crucial for maintaining business reputation and customer trust.
The impact of cyber attacks on retail giants
In the United Kingdom cyber attackers managed to cripple some of the country's biggest retail businesses — Marks & Spencer (M&S) and the Co-op Food chain highlight the vulnerabilities. Initial cyber attack access is believed to involve tricking employees through social engineering, with reports of compromised credentials and potential abuse of IT helpdesk processes.
Social engineering focuses on the people in a business, tricking individuals into divulging information which allows them access into business systems1.
The attacks resulted in widespread disruption to operations, revenue and reputational damage, locking the businesses out and accessing huge quantities of customers' personal information.
In the case of M&S the iconic retailer was unable to accept contactless payments in store or operate online for almost two weeks, 200 of its workers lost shifts and there were empty shelves around the country.
The ongoing duration of the cyber impact has been due to a ransomware attack that encrypted the company's server after hackers stole a database of passwords2.
The Co-op Food network and department store Harrods also have sustained cyber attacks, with cyber criminals claiming to have the private information of 20 million people who signed up to Co-op's membership scheme.
The hackers revealed their first extortion to Co-op security via the British media and the data breach details of 10,000 customers, as well as claims they targeted business executives in the blackmail attempts.
Cyber threats to Australian retailers
Strengthening cybersecurity: key strategies for retailers
Retailers can take proactive steps to mitigate the risk of cyber attacks, enhance cyber security and help protect their business.
- Employee training: Regular training enables staff to recognise and resist social engineering attempts and empowers them to defend the business.
- Vulnerability scanning: Investing in systems to monitor and identify weaknesses in digital infrastructure helps protect entry points for cyber criminals. Penetration testing, a form of ethical hacking, allows for a deeper understanding of your vulnerabilities by assessing your systems from an attack rather than defensive approach.
- Multi-factor authentication (MFA): Strengthen account security by making use of MFA to make it harder for criminals to gain access to accounts through stolen or reset passwords. Evaluate MFA methods as not all are equal and attackers are constantly looking at ways to bypass weaker methods.
- Incident response planning: Creating a plan that can be swiftly implemented in the event of a cyber attack can make a vast difference to its impact and severity. Plans should consider all eventualities and include effective communication strategies to maintain business and stakeholder confidence during disruptions.
- Cyber insurance: Consider business cyber insurance to support recovery efforts, minimise financial impact and get the business back to fully operational status.
Building a resilient cyber defence strategy in retail
- Stress-test business continuity and crisis response plans for cyber attacks to ensure readiness for ransomware impacts, including fallback procedures for manual ordering, inventory control and rapid restoration of key services. It is also vital to test crisis communications plans, to be able to maintain confidence and trust across customers, suppliers and, for listed organisations, shareholders.
- Financial preparedness to survive large-scale operational disruption and test financial resilience. Costs from business interruption — and the costs of IT recovery — can quickly escalate, so ensure access to capital and/or adequate insurance protection to facilitate recovery.
- Supply chain cybersecurity by improving cyber security rigour across service providers and IT vendors, particularly IT support desks and third-party suppliers. Understand dependencies and quantify risks to safeguard against potential breaches.
- Access and identity management calls for the implementation of stringent access controls to prevent privilege escalation and reduce exposure to social engineering attacks7.
Gallagher cyber defence solutions
At Gallagher we offer tailored cybersecurity solutions to help retailers strengthen their cyber risk management strategies. Our cyber security experts are ready to assist in enhancing your cyber profile. Connect with us to explore how we can support your business.