Retail threats
Understanding where the weak points are in retail cybersecurity is the first step toward strengthening defense. Let’s look at the top ways hackers breach retailers’ systems.
POS and endpoint attacks
In-store registers and endpoints are among the most common attack surfaces for retailers. Hackers install malware that scrapes POS terminals’ memories or logs keystrokes to steal credit card data.
Phishing and social engineering
Human error remains a key way attackers find a foothold in businesses’ networks. Posing as HQ, vendors, or IT, cybercriminals send phishing emails to store managers (or seasonal staff). They might ask recipients to “verify login” or “reset credentials,” capturing their usernames and passwords. AI has made these messages harder to spot, allowing hackers to craft hyper-personalized and error-free messages. Social engineering also works in reverse: threat actors impersonate a locked-out employee and call the helpdesk to reset passwords or gain privileged access.
Account takeover (ATO)
ATO fraud is a rapidly growing problem for retailer web portals and loyalty programs. Using automated bots, attackers take lists of stolen credentials from data breaches and run them on retailer login portals. These bots use residential proxies and AI solvers to dupe a CAPTCHA and mimic legitimate users. Credential stuffing exploits people’s tendency to reuse passwords, especially weak passwords. Once hackers take over an account, they can drain gift cards, loyalty points, or payment info and make fraudulent transactions.
Malicious extensions and scripts
Threat actors use a variety of browser-based tactics to inject malicious extensions or scripts. For retailers, Magecart attacks are a particular threat, allowing hackers to collect credit card information as customers enter it on ecommerce checkout pages. Attackers insert these digital skimmers via vulnerabilities in CMS or third-party widgets. They may also trick store employees into installing browser extensions, allowing them to steal session cookies or authentication tokens and access systems.
Third-party integrations
Third-party vendors are a prime target for cybercriminals, as a single breach can allow hackers to move laterally into the networks of numerous downstream customers. The number of breaches involving a third party doubled last year, accounting for 30% of hacks. Retailers are especially vulnerable given their reliance on payment processors, POS vendors, logistics apps, and other external vendors.