The retail sector, increasingly digital and technology-dependent, has become one of the prime targets for cybercriminals. Nearly 25% of all cyberattacks worldwide today target retail companies. It is estimated that 80% of global retailers have been attacked in the past year – many facing multiple incidents such as malware infections on websites, attempted fraudulent transactions, and breaches in payment gateways.
The financial impacts also escalate: the average cost of a data breach in retail reached around US$ 3.91 million in 2024, an 18% increase from the previous year. Aside from the direct financial loss, these incidents shake consumer confidence – 62% of customers state they do not trust the security of their data in retail companies.
Main risks: data, availability, and fraud
Various cyber threats affect modern digital retail, with the most critical being leakage of sensitive data, system unavailability, denial of service attacks (DDoS), and online fraud. Leaks expose confidential customer information, potentially resulting in loss of trust, regulatory penalties, and damage to brand reputation. Unavailability caused by failures or attacks, such as ransomware, paralyzes essential systems, hampers sales, and can lead to significant financial losses.
DDoS attacks, especially critical during campaigns like Black Friday, bring down websites by overwhelming servers with malicious traffic, causing immediate loss of sales and damage to the company’s image. Digital frauds, such as using stolen cards and payment interception, exploit process flaws and are difficult to prevent due to speed and lack of clear standards. These risks often combine, reinforcing the need for a structured and holistic approach to digital security to mitigate business impacts.
Structured IT governance: the key to risk mitigation
To address the growing threats, digital retailers need to adopt a robust and well-structured IT governance, based on best practices and compliance.
This includes planning in advance responses to different attack scenarios, deploying redundant IT architecture, and business continuity plans. With governance, the company can anticipate threats and prepare responses, instead of reacting chaotically after the damage.
For example, well-trained security teams and defined protocols can contain a ransomware attack before it spreads, or isolate an affected system to keep the rest of the operations running. This proactive stance drastically reduces both the frequency and impact of incidents.
A robust IT governance in digital retail must be based on essential pillars, such as clear security policies defining detailed protocols, regular audits, and continuous employee training. In addition, it is crucial to implement strict access management, adopting the principle of least privilege and advanced authentication tools, minimizing internal vulnerabilities and preventing misuse. Complementing these practices, it is essential to automate critical processes like security updates, continuous monitoring, and frequent backups, reducing human errors and accelerating responses.
In essence, as retail becomes more digital and cybercriminals more audacious, investing in solid IT governance and rigorous security practices has ceased to be optional – it is a strategic imperative for survival and success in the sector.
A well-structured governance, supported by market best practices and compliance with standards, mitigates cyber risks and increases the operational resilience of retail companies. This means protecting critical data and essential systems from threats, but also ensuring that even in the face of an incident, the company can maintain its operations or recover quickly.
The result is twofold: preserving business continuity and maintaining customer confidence in a secure digital shopping environment. In a scenario of constantly evolving threats, the ability to anticipate risks and respond effectively can define which retail organizations will thrive in the digital era safely and sustainably.
By Luciano Costa, co-founder of Setrion Software
