Statistics Show Retailers need to Improve Data Security

Statistics Show Retailers need to Improve Data Security

Data breach statistics show retailers need to address customer data security ahead of the GDPR compliance deadline.   

According to ICO figures, breaches involving the loss of client data from hacking or leaking rose from 19 in 2015/16 to 38 in 2016/17.

Law firm RPC said the risks involved in data breaches are increasing in the retail industry as retailers accumulate more personal information on their customers as part of their big data initiatives.

According to RPC data collected through online shopping, loyalty programmes and digital marketing is making even relatively small retailers a target for cybercriminals.

A partner at RPC said:  “Retailers are a goldmine of personal data but their high-profile nature and sometimes aging complex systems make them a popular target for hackers.

He said however that as a result of the rising cost of wages, exchange rate falls and the cost of keeping up with technology a proper overhaul of cyber defences tends to be “put on the back burner”.

According to a July 2017 analysis of data from 1,500 firms by commercial property agency Savoy Stuart, cybersecurity is a high priority for just 39% of directors or senior managers in the retail and wholesale sector.

He predicts that the number of personal data breaches reported in the retail sector is likely to increase as reporting such breaches will become mandatory for the first time.

He said: “As the GDPR threatens a massive increase in fines for companies that fail to deal with data security, we expect investment to increase both in stopping breaches occurring in the first place and ensuring that if they do happen they are found quickly and contained,”

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