Today’s digital technologies allow retail businesses to create in-store management efficiencies, and to connect online with customers around the globe. But those same technologies can make retailers vulnerable to cyber risks — risks that can fatally damage the overall health of your brand and business.
While in-store computer systems and consumer-facing websites are a boon for retailers and their customers, the data they collect and maintain — credit card numbers, personal addresses, and other types of sensitive information — makes them a target for cyber crime.
With this ever-more sophisticated and increasing cyber risk, come obligations —to your customers’ privacy and to keep up with a multitude of global and local regulations governing those obligations.
Despite the best intentions of a retail entity, cyber breaches can happen. Here’s a primer on cyber crime — and some tips on how retailers can mitigate that risk.
To cybercriminals, data is profit. Hackers use vulnerabilities to gain access to a system, using methods and software that are ever changing and ever more sophisticated. Here are a few terms that retailers should know:
What all of these have in common is that they disrupt business and can cost retailers hundreds of thousands of dollars in lost revenues, legal expenses, fines, and reparation costs. Reparations usually necessitate not only technical and financial experts, but also public relations professionals, because of the potential damage to customer trust and brand loyalty. In all, the resourcing and the expense can be enough to seriously cripple or even shut down a retail business.
For more key cyber security terms, check out Cyber Security Terms You Need To Know.
Of course, the best defense against cybercrime is to be on the offense. Here are some tips to protect against this ever more present and growing threat:
Learn more about Chubb’s retail and cyber capabilities and resources.
All content in this material is for general information purposes only. It does not constitute personal advice or a recommendation to any individual or business of any product or service. Please refer to the policy documentation issued for full terms and conditions of coverage.
Chubb European Group SE (CEG) is an undertaking governed by the provisions of the French insurance code with registration number 450 327 374 RCS Nanterre. Registered office: La Tour Carpe Diem, 31 Place des Corolles, Esplanade Nord, 92400 Courbevoie, France. CEG has fully paid share capital of €896,176,662. UK business address: 100 Leadenhall Street, London EC3A 3BP. Authorised and supervised by the French Prudential Supervision and Resolution Authority (4, Place de Budapest, CS 92459, 75436 PARIS CEDEX 09) and authorised and subject to limited regulation by the Financial Conduct Authority. Details about the extent of our regulation by the Financial Conduct Authority are available from us on request.
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