The retail and hospitality sectors are some of the biggest growth engines in the world’s economy, with hospitality reaching more than $247 billion in value in the United States and retail standing as the country’s largest private-sector employer.
At the same time, businesses in these sectors must meet high expectations for customer service, data privacy, continuity, and speed. Together, these pressures can make it difficult for retail and hospitality businesses to balance digital innovation with cybersecurity and resiliency.
Without this balance, however, these organizations will continue to be prime targets for sophisticated cyber threats. In fact, in 2024, cyber attacks in the retail sector increased by 61% compared to 2023.
In this article, we will explore the specific challenges retail and hospitality companies face in today’s digital world and highlight some proven approaches they can use to build their cyber resilience.
Cyber resilience isn’t just a buzzword or a box businesses have to check to obtain compliance with regulatory requirements or cyber insurance. In fact, the elements that make these businesses cyber-resilient tie directly to their operational viability and profitability.
Here are just a few of the key links between cyber resiliency in retail and operational effectiveness:
Making cyber resiliency in retail a priority is easier said than done. Although the challenges can vary, some of the most common include:
Retail and hospitality businesses often have complex network infrastructures composed of systems across multiple locations and a wide variety of technologies, ranging from point-of-sale systems to Internet of Things (IoT) devices. Not only are these environments hard to manage, but they also create extensive attack surfaces that require constant monitoring.
Different locations within retail and hospitality chains frequently use different systems, leading to inconsistent security postures that make centralizing security complicated. This fragmentation also makes it challenging to enforce uniform security policies across all locations and respond quickly to incidents as they happen.
Given the amount of customer data and payment information they manage, retail and hospitality businesses have to navigate strict Payment Card Industry Data Security Standard (PCI-DSS) and General Data Protection Regulation (GDPR) regulations.
Despite these challenges, security teams can invest in initiatives that build cyber resilience. Five of the most effective include:
Implementing a zero trust architecture, which validates user and system access continuously and seamlessly, can effectively isolate sensitive network enclaves and prevent lateral movement in case of a breach.
Wherever possible, standardize core technologies such as firewalls, access points, and point-of-sale (POS) systems. This simplifies security management and reduces vulnerabilities by enabling consistent deployment, patching, and maintenance.
Use cloud-based monitoring tools that consolidate data from across your network and security tools. These monitoring dashboards identify and flag anomalies before they escalate and enable visibility during threat containment.
Managed detection and response (MDR) services offer expert-level threat monitoring and access to intelligence that helps businesses stay ahead of emerging threats. These services also can provide continuous vulnerability assessments so threats can be mitigated before they can be exploited.
Finally, business continuity plans need to be regularly tested to ensure critical operations can failover to backup systems during incidents. Security teams should also validate the priority and order in which systems are recovered in the wake of an event.
Achieving cyber resiliency in retail is a continuous process with no defined end point; it evolves and shifts as businesses grow and adapt to their markets. Cyber resiliency also necessitates a comprehensive approach that accounts for the unique technical challenges and requirements of retail and hospitality businesses.
However, once its foundational elements are in place, these cybersecurity measures not only protect against threats but also provide competitive advantages that customers are drawn toward.
Want to strengthen your cyber resiliency program?
Let Logically’s experts tailor our comprehensive solutions to your operations, including 24/7 monitoring and threat detection, endpoint protection and backup solutions, and compliance certification expertise.