Identity issues cost retailers millions

As we approach the peak holiday shopping season a new survey of nearly 400 IT security decision-makers and retail customers from identity specialist HYPR shows that 58 percent of retail organizations experienced at least one authentication-related breach and 65 percent were victims of identity fraud over the last 12 months.

Retailers have suffered losses of up to $6.27 million in the last year alone due to insecure authentication methods. By contrast financial institutions reported only $4.57 million lost during the same period.

"This holiday season, retailers are facing a perfect storm of increased online traffic and heightened security risks. Our latest report reveals a critical need for stronger authentication measures to protect consumers and prevent breaches that can severely impact revenue and brand reputation," says Bojan Simic, CEO and co-founder of HYPR. "Retailers need to understand that security is no longer just an IT issue; it's a business imperative. Failing to protect customer data can have devastating consequences."

The report also shows 89 percent of retailers surveyed by HYPR have faced a cyberattack over the last 12 months, with 83 percent going on to suffer breaches. Of these 78 percent were breached via credential misuse or authentication vulnerabilities.

Phishing as a means for credential misuse, continues to dominate as the leading attack vector with 35 percent falling victim, credential stuffing (26 percent) and identity impersonation (27 percent) remain in the top five. A third (32 percent) of retail organizations experienced ransomware.

These attacks are harmful in other ways too, 35 percent of the companies breached say they lost customers to a competitor and 25 percent suffered reputational damage.

Awareness of the problem is breaking through to customers too, with 88 percent demanding retailers have strong security protocols to protect their personal information. 81 percent say they would cease shopping a retailer if they had a breach.

You can get the full report from the HYPR site and there's an infographic summary of key findings below.

Image credit: [email protected]/depositphotos.com