Retailers continue to face mounting cybersecurity challenges, with bad actors evolving and exploiting new vulnerabilities faster than ever. As retail organizations expand their digital footprints—from eCommerce platforms to IoT and expanded mobility devices—their exposure to cyber risk grows. Based on the latest data and observations, it’s clear that cybersecurity can no longer be a secondary priority. It must be woven into every aspect of the retail experience—from frontline employee training to backend systems and supplier networks.
The Most Common Cybersecurity Threats in Retail
Cybercriminals are constantly adapting their tactics, and retailers remain prime targets. Here are the top cyberattack methods facing the industry in 2025:
- Credential Phishing: 58%1
Phishing continues to dominate, with attackers crafting increasingly convincing messages to steal login credentials from retail employees and vendors. - Malware: 21.74%1
Malware remains a steady threat, often used to gain persistent access to retail systems or to harvest payment and customer data. - Ransomware: 13.04%1
Ransomware attacks can bring retail operations to a halt. Threat actors demand payment in exchange for encrypted business-critical data, causing costly downtime. - Distributed Denial of Service (DDoS): 10.14%1
DDoS attacks aim to overwhelm retail networks and eCommerce platforms, especially during peak shopping seasons. - Other Attack Methods: 24.65%1
These include insider threats, social engineering, and third-party vulnerabilities, all of which pose serious risks.
Retail: Still a Top Target
The retail sector remains one of the most targeted industries for cyberattacks. In fact, about a quarter of all cybercrimes are aimed at retailers.2 Retailers often store sensitive customer data and operate complex, distributed systems that may be difficult to secure consistently. From in-store POS systems to mobile apps and online portals, attackers are looking for the weakest link.
The High Cost of a Breach
A single breach can have lasting financial and reputational damage. While the immediate costs of a data breach are steep, the downstream effects can be even more damaging:
- 53% of retailers report reputational damage following a cyberattack, often resulting in loss of customer trust and declining revenue.3
- 33% of retailers faced regulatory fines due to non-compliance or failure to protect sensitive data.3
Cybersecurity is no longer just an IT concern—it’s a business risk with legal and financial implications.
Human Error Remains a Key Risk Factor
Despite advances in cybersecurity technology, human error continues to be a leading cause of breaches:
- 78% of temporary retail employees hired in Q4 of 2024 did not receive social engineering training, leaving them vulnerable to phishing and impersonation tactics.3
This highlights the importance of employee training and awareness programs. Even the most advanced security solutions can be undermined by a single click on a malicious link.
Building a Resilient Future
Cybersecurity in retail requires a proactive, layered approach:
- Implement advanced threat detection and response solutions
- Conduct regular security assessments and penetration testing
- Prioritize employee education and role-specific training
- Ensure third-party vendors adhere to strict cybersecurity standards
- Invest in data encryption and zero trust access policies
As retailers prepare for future growth and transformation, building cyber resilience must be a top strategic priority. By staying informed and investing in robust cybersecurity practices, retail organizations can protect both their brand and their customers.
- Fortinet, 2021, Retail Cybersecurity Statistics Not To Be Ignored ↩︎
- Shopify, 2025, Retail Cybersecurity in 2025: Trends, Risks, and Solutions ↩︎
- VikingCloud, 2025, Retail Cybersecurity Stats, Threats, and Solutions for 2025 ↩︎
Brian Gallagher
Brian is the Retail Strategy & Business Development Director at Connection. Brian joined Connection in 2016 as the Retail subject matter expert (SME) after leading National Store Operations teams for more than 20 years. Brian has a deep understanding of today’s Store Experience and Customer Engagement solutions requirements and works collaboratively with customers and partners to create complete business solutions to drive customer engagement and revenues. Outside of work, he enjoys traveling with his wife and cheering on the Cleveland Indians.
