Retail Data Breaches: Why Cyber Security Is Non Negotiable In Industry
The Advent of the Internet has revolutionized the core concept of business strategies. The 21st century saw the dawn of new terminologies and methods to carry out business activity. The Advent of E-marketplaces has given new dimensions to buyer’s and seller’s behavior. The rapid shift of buyer-seller transactions to online marketplace mandates prudent business practices and efficient risk management for retailers. The E-commerce and retail industry has rapidly evolved and has changed the fundamental way we see business transactions. With this evolution also evolved were the cultivated ways of nefarious minds constantly looking to make a dent into businesses by virtue of cyber attacks.
The infrastructure and ecosystem that sustains healthy E-commerce activity is at the forefront of being the victim of cyber attacks. Every business transaction generates data, and the ecosystem has become a treasure trove of data, inviting the wrath of sophisticated cyber attackers. Investing in strengthening the cyber security mechanism more than ever becomes vital.
Retail And E-commerce Security
E-commerce security is a set of protocols and practices that safeguard the whole ecosystem of traders and buyers from possible intruders. It aims to protect the confidential data generated during the process from phishing attacks, credit card frauds, hacking, and unprotected online services. If the safe environment is not guaranteed, then the business prospects of the retailer will suffer. It is pertinent to implement third-party risk management practices in the retail industry.
Why It Has Become Non-negotiable
A comprehensive cyber security mechanism has important goals. It needs to protect the information’s integrity and confidentiality. It needs to comply with data privacy and protection laws. Lastly, it needs to foster a risk-free environment for the trust level to be built between the parties. We will see why it needs to be the top priority now.
Effect On Individuals
If the individual’s data is stolen, they may risk becoming victims of fraud and identity theft. The attacker can use the stolen data to breach the individual’s financial holdings and erode the accumulated wealth. Moreover, the theft of private data may bring shame and humiliation to the individual, leading to psychological trauma and damage and, in extreme cases, a demand for extortion and life threats.
Effect on Businesses
Cyber attacks and data breaches hurt businesses badly, both financially and otherwise. The average cost of a successful cybersecurity breach runs into millions. The ransom demands from the hacker and remediation and forensic investigation costs will add to the pile-up of financial burden. Also, lawsuits and regulatory fines can add up to the cost.
Phishing Scams are the most common cyber frauds that have the biggest impacts. It usually starts with a malicious link or attachment that looks like an important and legitimate source. But once clicked, your privacy wall will be successfully breached. The device, too, will be compromised, and the attacker may gain access to resources on the enterprise network and cause widespread damage. Due diligence and better third-party risk management practices are a step in the right direction toward the solution, as scammers mostly piggyback the shoulders of third-party vendors and resources.
Malware And Ransomware
Ransomware poses a significant threat to the data security and privacy of retailers. During the attack, the perpetrator infests the corporate devices with malware, encrypting the system and locking out the user. The criminals then demand a hefty bounty in exchange for decryption keys, leading to greater financial losses for the retailers. Ransomware strains can easily spread throughout the network and infiltrate huge amounts of data.
Insider threats are the inherent threats in any organization due to the susceptibility of third-party resources and insider elements to cyber security assaults. They pose a significant challenge to data privacy. Threats usually come from willful, malicious vendors and employees who want to harm the business. They can also come from careless insiders who accidentally give access to sensitive data to the attackers. A comprehensively managed third-party risk assessment and system will eventually address insider cyber security threats.
Vulnerabilities Of The Software
If the efficacy of the cyber security software is not tested and updated, the attacker can exploit the potential loopholes to gain entry into the network. Cyber threat hunters need to examine the vulnerabilities in the ecosystems to better guard against nefarious elements. Sophisticated attackers are well-trained in locating the vulnerabilities and then improvising on the knowledge to build protocols to make successful breaches.
The frequency of cyber security breaches is increasing day by day. Hackers are usually attacking high-profile businesses that have damaging effects on small businesses and retailers. Retail businesses often don’t have high-end resources to deploy, making them even more vulnerable to attacks. Investing in cyber security and comprehensive data protection infrastructure will shield them from the menace of cyber fraudsters. At Beaconer, we employ highly advanced and trained AI tools and models to provide retail businesses with third-party risk management services and solutions.
Why Vendor Risk Management is Essential to the Healthcare Industry
The healthcare industry relies heavily on third-party vendors to provide critical products and services. From medical devices and pharmaceuticals to IT systems and facilities management, healthcare organizations partner with a vast network of vendors to deliver quality care.