Technological evolution, driven by the development of Artificial Intelligence (AI) and the Internet of Things (IoT), continues to transform everyday life. One of the most impacted activities by these changes is commerce, especially retail stores that seek to adapt to compete in a phygital market.
Physical stores are adopting an increasing number of smart tools that allow them to offer conveniences typical of online shopping, such as self-service kiosks, contactless payments, and cashierless stores. These advancements improve the customer experience while optimizing internal operations, enabling small businesses to compete with e-commerce giants.
This transformation brings multiple changes in consumer habits, impacting traditional purchasing methods. Currently, stores are focusing their efforts on meeting new customer demands through the implementation of smart devices. However, Palo Alto Networks warns about the resulting cybersecurity risks.
Boosting productivity with sustainability: IoT-based solutions
Technology not only speeds up the shopping experience but also reduces operational costs, fostering customer loyalty and increasing satisfaction. Additionally, automation improves inventory management, enabling faster restocking, more efficient customer service, and self-service systems that speed up transactions, enhancing productivity.
IoT-based security systems strengthen theft monitoring, while energy use is reduced through optimized lighting and equipment. Loss prevention technologies also help minimize waste and overproduction, promoting sustainability.
According to Starfleet Research data on best practices in retail security, 68% of companies have already implemented this technology to accelerate intelligent customer interaction, real-time inventory management, and the development of digital operations systems.
Thus, productivity drives a more sustainable model aligned with global commerce trends. The same report states that 58% of retailers are implementing IoT-based energy management solutions, such as interconnected lighting systems and water monitoring apps, helping companies meet environmental responsibilities.
The cybersecurity challenges in retail transformation
The proliferation of connected devices also increases the potential attack surface for cyberattacks and data breaches. The rise in intrusion techniques has made IoT devices particularly vulnerable. According to the report ‘IoT Security Best Practices of Top-Performing Organizations in Retail,’ ransomware attacks alone grew by 67% in 2022 compared to the previous year, highlighting the challenges faced by the sector.
Governments worldwide are responding with regulations designed to improve security in this area, such as the IoT Cybersecurity Improvement Act in the United States and the EU’s Cybersecurity Act. However, these regulations alone are not enough to address the multifaceted challenges.
How to strengthen retail security
With the growing variety and quantity of smart devices being implemented in businesses, accurately tracking each one is crucial. This visibility detects unauthorized devices and monitors suspicious activity, ensuring retailers can protect their networks from potential threats.
Marcos Oliveira, Country Manager of Palo Alto Networks in Brazil, states that it is essential to use AI and advanced machine learning to detect and prevent potential threats before they can exploit device vulnerabilities: ‘A proactive approach helps reduce the risk of data breaches and ensures systems remain secure.’
‘A centralized platform must be managed, where robust security policies can be applied to all devices, regardless of manufacturer or operating system. Similarly, data encryption and protection should be business priorities, as attackers can easily intercept and exploit them,’ he adds.
The potential for digitization and automation in the retail sector is vast and offers new opportunities for growth and innovation. However, this promise brings significant risks if businesses are not properly protected. As technology evolves, security solutions must keep pace, reducing threats that could compromise the business operations of any organization, regardless of size. Additionally, ensuring the protection of user and customer data is mandatory. During peak shopping periods, such as the December holidays, it is advisable to act in advance and secure systems rigorously.
