Retail and e-commerce businesses face some of the heaviest cyberattacks across all industries because they handle massive amounts of sensitive customer data daily.
Credit card numbers, personal identities, and payment information stored in both physical stores and online platforms create attractive targets for cybercriminals looking for immediate financial rewards.
According to the Verizon 2025 Data Breach Investigations Report: Retail Snapshot, 100% of retail breaches are financially motivated, demonstrating how attackers specifically target this data-rich sector for profit.
This article examines the primary cybersecurity risks threatening retail businesses today, details the key frameworks that govern data protection standards, and offers actionable best practices for building stronger defenses. We'll also explore how SentinelOne helps retail organizations protect their endpoints, point-of-sale systems, and cloud environments from growing cyber threats.
What is Cybersecurity in Retail?
Cybersecurity in retail protects the systems and digital processes that keep retail operations running. It covers everything from payment terminals to cloud-based inventory tools and customer loyalty apps.
Since these systems are often connected, one weak link can expose the entire network to cyberattacks.
Retail cybersecurity aims to stop threats like data breaches, ransomware, and phishing by securing potential entry points, such as networks and applications. It also involves regular monitoring, data encryption, and identity verification to reduce risks across physical stores and online platforms.
Cybersecurity maintains business continuity and protects customer trust. A single security incident can interrupt sales, damage reputation, and lead to compliance penalties.
Why Cybersecurity Is Critical for Retailers
Digital transformation has changed how retailers operate.
Online stores, mobile apps, cloud-based systems, and connected point-of-sale (POS) devices have made shopping faster and more convenient. However, this increased connectivity has also expanded the attack surface. Each connected system or third-party service introduces new entry points that cybercriminals can exploit to steal data or disrupt operations.
In retail, downtime is costly. A single hour of system outage can halt payments, delay orders, and frustrate customers. Beyond lost sales, these incidents damage reputation and erode customer confidence. When shoppers lose trust in a retailer’s ability to protect their personal or financial information, they are less likely to return.
Cybersecurity in retail is not optional. Rather, it's essential for maintaining trust, meeting regulatory requirements, and keeping operations stable. A strong security posture helps retailers protect sensitive data, reduce financial risk, and continue serving customers without interruption.
Key Cybersecurity Threats in Retail
As retail environments grow more interconnected, understanding the most pressing dangers is vital for proactive defense strategies.
Point-of-Sale (POS) Malware
Point-of-sale systems are frequent targets for cybercriminals because they process large volumes of payment card data. Attackers use malware to capture this information directly from POS memory or intercept it during transactions. Many breaches happen when retailers use outdated or unpatched terminals that lack modern security controls.
Preventive measures include encrypting payment data, segmenting POS networks from other business systems, and continuously monitoring for suspicious activity that might signal a compromise.
Ransomware Attacks
Ransomware is one of the most disruptive threats facing retailers today. It can shut down in-store payment systems, e-commerce platforms, and back-office operations.
Ransomware attacks have increased by 13% in the last five years, and 70% of ransomware incidents have targeted SMBs. This trend highlights how attackers often focus on retailers with limited security resources, knowing they are more likely to pay ransoms quickly to restore operations.
For retailers, every minute of system unavailability affects transactions and customer experience. Quick recovery plans, secure backups, and endpoint protection are vital to reduce damage and restore operations efficiently.
Supply Chain & Third-Party Breaches
Retailers rely heavily on vendors for logistics, software, payroll, and maintenance, which expands the potential attack surface.
Supply chain attacks target third-party systems such as HVAC networks or service providers to gain indirect access to retailer environments. A well-known example is when attackers infiltrate vendor systems to install malware in connected networks.
Retailers can reduce this risk by performing vendor risk assessments, reviewing access permissions, and monitoring network traffic for irregular behavior.
Insider Threats & Human Error
Insider threats are common in retail environments due to high staff turnover, seasonal hiring, and widespread system access. According to the Verizon Data Breach Investigations Report, 60% of breaches involved human elements like credential abuse, falling for social engineering scams, and interacting with malware. Mistakes such as clicking phishing links or misconfiguring cloud storage can expose sensitive data.
Regular employee training, strict access management, and behavioral monitoring can help reduce these risks.
Data Breaches & Privacy Violations
Data breaches remain one of the most costly cybersecurity incidents in retail. IBM’s 2025 Cost of a Data Breach Report estimates the average retail breach at $3.54 million, covering both direct financial loss and post-incident recovery. In addition to monetary costs, retailers face regulatory penalties under GDPR, CCPA, and PCI DSS if customer data is exposed.
A strong security posture with encryption, endpoint protection, and regular compliance reviews helps limit data exposure and maintain customer trust.
Frameworks & Compliance Standards in Retail Cybersecurity
Retail security frameworks provide retailers with a clear structure for building defenses, maintaining data compliance, and managing risks across complex digital systems. With growing regulatory demands and evolving threats, frameworks help standardize security practices and create accountability across IT, compliance, and business teams.
PCI DSS (Payment Card Industry Data Security Standard)
The PCI DSS is mandatory for any retailer that processes, stores, or transmits payment card data. It defines security requirements designed to protect cardholder information throughout every stage of a transaction.
Core principles include encryption of payment data, network segmentation to isolate POS systems, regular audits, and vulnerability management. The latest version, PCI DSS 4.0, introduces stronger authentication controls and emphasizes continuous risk monitoring to help retailers stay ahead of emerging threats.
NIST Cybersecurity Framework
The NIST CSF helps retailers organize and improve their security programs through five key functions: Identify, Protect, Detect, Respond, and Recover. These functions guide retailers in understanding their risks, securing assets, detecting incidents, responding effectively, and restoring operations.
NIST CSF also supports coordination between IT and compliance teams, helping organizations protect more than just cardholder data by addressing broader cybersecurity needs across all digital systems.
ISO/IEC 27001
ISO/IEC 27001 is an international standard for information security management systems. It helps retailers demonstrate a formal commitment to data protection, governance, and continuous improvement.
Certification under ISO 27001 builds trust with customers and vendors by showing that security controls are verified and maintained. This framework aligns well with PCI DSS and NIST CSF, creating a more unified and consistent approach to managing cyber risks across retail environments.
Best Practices for Securing Retail & E-commerce
Building strong defenses in retail requires specific strategies to keep data safe and operations running. Here are best practices that help retailers minimize cyber risk and recover more quickly if an attack does get through.
Adopt a Zero Trust Approach
A Zero-Trust strategy operates on the principle of “never trust, always verify.” Every device, user, and connection must be authenticated before accessing systems or data.
For retailers, this approach strengthens security across connected stores, headquarters, and cloud applications. Key Zero-Trust practices include continuous identity checks, micro-segmentation of networks, and multi-factor authentication (MFA).
Implement Advanced Endpoint Protection
Every endpoint, from POS terminals and employee laptops to cloud workloads, represents a possible entry point for attackers. Advanced endpoint protection tools use AI-driven detection to identify and stop ransomware or malware before they spread.
Automated response features also help IT teams isolate infected systems quickly and prevent downtime. Centralized endpoint protection simplifies management across multiple store locations and online platforms.
Train Employees & Seasonal Staff
Human error remains one of the leading causes of data breaches. Regular training helps employees recognize phishing attempts, handle sensitive information properly, and follow security procedures.
Continuous awareness programs and phishing simulations are critical in retail environments with high staff turnover and seasonal hiring. Educated employees are more likely to identify and report suspicious activity early, reducing overall risk.
Strengthen Access Controls & MFA
Access control is a foundational part of retail cybersecurity. Applying the principle of least privilege means users only get the access they need to do their jobs.
Retailers should assign unique user accounts, enforce strong password policies, and require MFA for all system logins. Privileged Access Management (PAM) tools can help secure administrative accounts and protect critical systems from misuse or compromise.
Network Segmentation & IoT Security
Segmenting networks limits how far an attacker can move after breaching one system. Retailers should separate POS terminals, IoT devices, and corporate systems to reduce exposure. This separation helps maintain PCI DSS compliance and simplifies containment during an incident.
Since many retail devices, such as smart cameras and inventory trackers, connect to the internet, adding extra security controls and regular firmware updates is essential.
Continuous Monitoring & Incident Response
Continuous monitoring allows retailers to detect unusual activity before it leads to disruption. A well-tested incident response plan helps teams react quickly when a threat is identified.
Managed Detection and Response (MDR) or automated Extended Detection and Response (XDR) solutions provide around-the-clock visibility, which is especially valuable for retailers with limited IT staff. These tools help identify retail cyber attacks in real time and support rapid recovery across store and online environments.
Trends in Retail Cybersecurity
Retail cybersecurity is evolving rapidly as both technology and attacks advance. Here are several key trends shaping retail security strategies in 2026.
Generative AI and Machine-Identity Risks
Retailers are increasingly worried about threats created by automation, AI tools, and machines acting as agents in their environments. Additionally, generative AI will advance phishing, malware, and deep-fakes.
In 2024, 68% of retail and e-commerce organizations experienced an API security incident. In 2025, their top priorities included ‘defending against GenAI-fueled attacks’ and ‘securing APIs from threat actors'.
IoT and Connected-Device Vulnerabilities
Connected devices in retail environments (e.g., sensors, inventory scanners, smart cameras, POS terminals, digital signage systems) open up new attack surfaces.
A 2025 survey of retail companies found that 40% feel least prepared for attacks on connected products, compared to 31% of companies in other sectors.
Supply Chain and Third-Party Risks
Third-party vendors play a growing role in how attackers gain access to retail systems. In the retail and hospitality sector specifically, third-party breaches climbed to 52.4% in 2024.
These breaches often occur through compromised software updates, exposed credentials, or weak security controls in vendor-managed environments.
Growing Investment in Retail Cloud Security
Retailers are shifting to cloud-first security platforms, fueling market growth from $5.83 billion in 2025 to $10.95 billion by 2030.
This growth is driven by the need to protect large volumes of customer and inventory data stored in the cloud, the rise of online shopping, and the adoption of AI-powered tools for analytics and personalized experiences.
Additionally, many retailers now deploy intrusion detection and prevention systems (IDS/IPS) to identify malicious network activity in real time.
Adoption of Zero-Trust Models
As stores, online platforms, and cloud systems become interconnected, a Zero-Trust approach is becoming important to limit attackers' lateral movement.
43% of retail and hospitality security leaders list Zero-Trust security architecture among their top three 2025 initiatives.
Retailers are adopting identity-based access, micro-segmentation, and continuous verification to strengthen defenses.
Rising Regulatory Pressure & Compliance Demands
New data privacy and security laws are reshaping how retailers manage customer data.
- In the United States, the California Consumer Privacy Act (CCPA) and California Privacy Rights Act (CPRA) give customers greater control over how their personal data is used.
- In Europe, the GDPR requires retailers to gain explicit consent before processing personal information and to report breaches within 72 hours.
- In the Asia-Pacific, new laws such as Singapore’s Personal Data Protection Act (PDPA) and India’s Digital Personal Data Protection Act (DPDPA) inform how multinational retailers handle cross-border data flows.
These evolving regulations are driving retailers to invest more in data classification, access management, and automated compliance reporting.
Cloud-Native & AI-Driven Security Tools
Retailers are rapidly adopting cloud-first security platforms that integrate AI for faster detection and response.
AI-powered endpoint protection and automated response tools help security teams detect threats and act before damage spreads. These cloud-native solutions are particularly valuable for large, distributed retail environments where manual intervention may be too slow.
How SentinelOne Supports Retail Cybersecurity
SentinelOne helps retailers build a secure and resilient technology environment that protects every point of the path to purchase, from in-store POS terminals to complex e-commerce cloud workloads. Its Singularity™ Platform provides unified protection across endpoints, cloud, and identity, allowing security teams to manage threats from a single interface.
Key features include:
- Autonomous POS and infrastructure protection. Detect and remediate attacks in real time across POS systems, mobile payment apps, and employee desktops. SentinelOne’s Behavioral AI identifies "zero-day" retail malware and unauthorized access attempts without requiring human intervention, ensuring store operations remain uninterrupted.
- Patented 1-click rollback and recovery. In the event of a ransomware or extortion attempt, SentinelOne’s rollback feature automatically neutralizes malicious activity and restores affected files to their original state. This minimizes downtime and protects the "checkout line" from costly service outages.
- Simplified PCI DSS compliance. The platform streamlines audit readiness with built-in File Integrity Monitoring (FIM), real-time inventory of every device in the Cardholder Data Environment (CDE), and tamper-proof logging to meet stringent regulatory standards.
- Retail supply chain and fraud prevention. Beyond standard antivirus, SentinelOne secures the retail supply chain by identifying compromised third-party credentials and preventing lateral movement. It also defends against automated bot attacks used for gift card fraud, price scraping, and fraudulent transactions.
- GenAI-Powered Threat Hunting: Using Purple AI, even lean retail security teams can use natural language queries to instantly surface and investigate hidden threats across distributed networks, from regional warehouses to headquarters.
SentinelOne is built for the complexity of modern retail. The platform protects everything from legacy "brick-and-mortar" systems to Kubernetes-based e-commerce platforms. By unifying protection across Windows, Linux, and macOS, retailers gain consistent, AI-powered security that safeguards customer trust and ensures operational continuity in an era of double and triple extortion threats.
FAQs
Cybersecurity is critical in retail because stores and e-commerce platforms process large volumes of payment and customer data. Without strong protection, this information can be stolen or sold on the dark web, leading to financial loss, legal penalties, and damaged customer trust.
Cybersecurity helps retailers protect their transactions, maintain compliance with data protection laws, and keep operations running smoothly.
Retailers face a wide range of cyber threats, the most common being ransomware, point-of-sale (POS) malware, phishing, data breaches, ransomware attacks, and credential stuffing. Attackers often target payment systems or online checkout pages to steal card data, while others use phishing emails to access internal networks or compromise employee accounts.
Retailers can protect POS systems by using endpoint protection platforms, restricting network access, and segmenting payment systems from other parts of the network. Regular software updates, strong password policies, and continuous monitoring for unusual activity also help detect and block attacks early. Encryption and tokenization further protect cardholder information from theft during transactions.
Several frameworks and standards guide cybersecurity in retail:
- The Payment Card Industry Data Security Standard (PCI DSS) sets rules for handling payment data securely.
- The NIST Cybersecurity Framework (CSF) provides a structured approach for managing cyber risks.
- ISO/IEC 27001 for information security management and CIS Controls for practical defense measures are also helpful references.
These frameworks help retailers build consistent and measurable security practices across their operations.
