Retail Cyber Threats

Cyber crime is having a devastating effect on the retail industry. The largest retail chains classified as Level 1 and 2 by the major credit card companies have spent millions to strengthen their security infrastructures and become PCI compliant. Cyber criminals know that considerable vulnerabilities exist with retailers classified as Level 3 and 4 and are targeting them with astonishing success. Moreover, Level 3 and 4 merchants are required to become fully PCI compliant across all 12 requirements or face fines and increased transaction costs from financial institutions.

Consider just a few of the grim cyber threat statistics unique to retail industry:

• $48 billion in business losses (2008)
• 90% of cyber breaches occur with smaller merchants
• A mature and highly organized crime market exists where stolen information is easily sold for up to $40 per record
• Most smaller merchants that are victimized by a cyber breach do not survive
• Restaurants and brick and mortal retail stores result in 80% of data breach incidents
• > 50% of merchants are not fully PCI compliant