Retailers collect, process, and store an ever-increasing amount of customer data. With vast amounts of personal and credit card information entrusted through loyalty programs, ecommerce sites, online marketplaces, subscription-based delivery services, and point-of-sale systems, having effective cybersecurity measures in place should be the top priority for retailers big or small.

While digital transformation in the retail industry has presented many benefits – efficient inventory management, enhanced customer experiences, and expanded market reach – it has also introduced a significant challenge: cyber risk. Recent data from the Australian Cyber Security Centre revealed that the retail industry is fast becoming a prime target for cyber criminals – second only to financial services and healthcare with 16.3% of cyberattacks in Australia now aimed at the sector.

Retailers have a growing responsibility to their customers to enhance and adapt processes continuously to ensure cyber resilience.

Security breaches in retail

The threat of cyber security breaches targeting retail systems is escalating, driven by attackers seeking personal and financial information. Cyber attacks on systems handling payment processing, customer transactions, and financial records can result in unauthorised access to sensitive data, leading to financial loss and compromised customer trust.

Experiencing a data breach can be devastating for any retailer. Popular online retailer, The Iconic, was recently in the spotlight after numerous customer accounts were used to place fraudulent orders, leaving some thousands of dollars out of pocket. While the retailer has promised to issue refunds to all affected customers, the loss of consumer confidence that follows a breach will undoubtably inflict significant damage to the Iconic’s reputation and bottom line.

While many retail innovations, such as streamlined purchasing processes, are designed to allow consumers to buy products with minimal clicks and steps, unfortunately, they also increase vulnerability to scams and data theft.

Integrating and safeguarding data through a data fabric

A data fabric is an innovative approach to securing, managing, and integrating customer data across various systems without relocating it from its source. This method establishes a virtual layer over existing data sources, ensuring robust access controls and data security while facilitating seamless data access and integration.

By keeping data in its original location, retailers can uphold existing security measures and access controls, enabling data integration and utilisation across all business functions without compromising security. This approach minimises the risk of unauthorised access, ensuring that only authorised employees can access sensitive information.

For example, using a data fabric approach, a retailer can protect customer’s personal and transactional information by creating a virtual layer over various systems where that data is stored. This method enforces strict access controls, ensuring only authorised staff can view full customer details while others see masked versions. Existing security protocols remain intact, reducing the risk of data breaches during transit and providing an additional layer of protection.

Enhancing customer data protection with Private AI

As the retail sector increasingly looks to boost performance and productivity through modernising operations, including automating processes and enhancing activities with artificial intelligence (AI), ensuring data security is vital.

When it comes to integrating AI, retailers should prioritise Private AI, which refers to AI systems that are hosted within an organisation’s controlled environment. This approach ensures that sensitive data, such as customer details, transaction records, inventory information, and employee data, remains secure. Whether deployed on-premises or within a private cloud infrastructure managed by the organisation or a trusted provider, Private AI ensures data security and regulatory compliance.

Private AI solutions allow retailers to leverage AI capabilities while maintaining strict control over their data. These systems operate within a retailer’s secure environment, ensuring sensitive data remains internal, reducing the risk of exposure, and complying with data privacy regulations. Retailers can also customise AI applications to meet specific security requirements, ensuring that AI models and algorithms are applied securely and effectively.

Securing retail IT systems and infrastructure from the ground up

Robust IT systems and infrastructure are the backbone of a secure data environment. Implementing security measures directly into a retailer’s IT framework can significantly enhance data protection. Adopting a zero-trust approach ensures that all users, whether inside or outside the network, are authenticated and continuously validated before gaining access to applications and data.

This is particularly important in retail, where businesses commonly have a mix of permanent, casual, and seasonal staff needing to access their systems. Utilising secure cloud solutions ensures that data is protected with advanced encryption methods and access controls, providing a resilient and secure environment for data storage and processing.

Secure your retail business with the right partner

Selecting the right partner is crucial for retailers aiming to enhance their data security and operational efficiency. Appian excels in integrating data and automating critical business processes with advanced security solutions.

Utilising Appian’s robust security frameworks and cutting-edge technologies like data fabric and Private AI, retailers can protect their sensitive information, optimise operations, and ensure compliance with industry regulations. This not only helps avoid costly data breaches and compensation payouts but also maintains customer trust and upholds brand reputation.

To learn more about Appian’s security solutions, click here.

Glen Lawson is account director for retail & supply chain at Appian.