Retail is one of the top five industries at risk for cyberattacks, and the fallout from a breach can be devastating. Today’s hackers aren’t just after credit card details, instead they’re aiming for sensitive personal information and the huge streams of revenue that flow through online stores.

A successful attack can mean stolen customer records, drained bank accounts, massive fines, and years of reputational harm. In short, one breach can cripple your e-commerce operation. That’s why building a strong defense is your best strategy.

Below, you’ll find key statistics about retail cybersecurity, an overview of the most common threats, the challenges retailers face, practical steps to overcome them, and top solutions to keep your business safe.

The Current State of Retail Cybercrime

• Global cost: Cybercrime is projected to cost the world $9.5 trillion in 2024, more than the GDP of every country except the U.S. and China.

• Breach expenses: The average data breach now costs about $4.88 million. Nearly 25% of all cyberattacks target retailers directly.

• Bot traffic: Almost half of visits to retail websites aren’t people. From 2021 to 2022, around 40% of traffic was from automated bots that scrape data, test stolen logins, or even overload sites.

• Small business impact: While big names get headlines, small retailers suffer too, 43% of all cyberattacks hit small businesses, and over 60% of those forced to close within six months after a breach.
  
  

Why E-commerce Fraud Is Rising

Pandemic Surge: As shoppers flocked online during COVID-19, fraud attempts spiked 18% in just one year, costing merchants over $20 billion in total losses.

Easy Targets: The anonymity of the internet lets scammers swipe card details, spin up fake storefronts, and fool people into thinking they’re dealing with a real site.

What Counts as an E-Commerce Scam?

Any fraud that happens on, targets, or pretends to be your online store falls under “E-commerce scams.” That includes:

• Phony websites that mimic your brand’s look and feel

• Spoofed emails or calls asking customers to verify account info

• Click fraud that drains your ad budget by generating fake ad clicks

  
  

Top Cyberthreats Facing Retailers

1. Phishing Scams

   Cybercriminals send fake emails, texts, or calls posing as trusted brands or colleagues. When victims click malicious links or share credentials, hackers gain access to systems and steal data or money. In 2023, phishing made up 43% of attacks on e-commerce companies.
   
   

2. Malware & Data Theft

   Trojans, viruses, and other malware sneak into networks through dodgy downloads, email attachments, or weak links in the supply chain. Once inside, they harvest customer payment details and login credentials. A famous example: Target’s 2013 breach, where malware on their point-of-sale system exposed over 40 million card numbers and cost the company $18.5 million in settlements.
   
   

3. Ransomware

   Hackers encrypt critical data and demand payment to unlock it. In 2023, 69% of retail firms faced ransomware attacks, with 71% of those infections encrypting data. The average ransom payout sits around $46,000, often paid simply to keep operations running.
   
   

4. DDoS Attacks

   By flooding a website with fake traffic from a network of compromised devices, attackers knock sites offline and cripple revenue. Nearly 50% of retail site traffic comes from malicious bots, including the Holiday-season “Grinch” bots that hoard inventory.
   
   

5. Web Application Vulnerabilities

   Flaws in e-commerce platforms let hackers inject malicious code, tamper with databases, or steal cookies. Within a day, about 65% of stolen credentials appear for sale on the dark web.
   
   

6. Social Engineering

   Beyond broad phishing, tactics like spear phishing (targeting individuals) and whaling (targeting executives) trick insiders into revealing passwords or approving fraudulent transactions. Business email compromise alone can cost companies around $50,000 per incident.
   
   

7. Supply Chain Attacks

   A weakness in one vendor’s software can open the door to dozens of retailers at once. Between 2019 and 2022, these attacks surged by 742%, exploiting gap after gap in third-party services.

   
   

Retail Cybersecurity Challenges & Solutions

Data Leaks

• Problem: Sensitive information is exposed through security gaps or human error.

• Impact: Retail ranks third in data-leak risk, and 82% of consumers will stop buying after a breach.

• Fixes: Encrypt data in transit and at rest, audit third-party vendors, use data-loss prevention tools, and train staff on best practices.

Skill Shortage

• Problem: There’s a global shortfall of 4 million cybersecurity professionals.

• Fixes: Invest in training and certifications for existing staff, adopt AI-driven security tools, offer competitive pay, and build cross-functional security teams.

Web App Attacks

• Problem: Outdated code and insecure integrations leave gaps.

• Fixes: Follow secure-coding standards, patch systems promptly, vet third-party scripts, and deploy a Web Application Firewall (WAF).

Insider Threats

• Problem: Employees or contractors with legitimate access can abuse their privileges, whether intentionally or accidentally.

• Fixes: Enforce least-privilege access controls, use a zero-trust security model, and monitor user behavior with advanced analytics.

IoT Device Risks

• Problem: Connected devices (like smart shelves or POS terminals) often lack strong security.

• Fixes: Keep firmware up to date, require strong authentication, and isolate IoT on separate network segments.

Ecommerce Fraud

• Types: Account takeovers, chargeback (friendly) fraud, payment-card fraud, and parcel interception.

• Fixes: Educate customers, use real-time fraud detection powered by AI, apply multi-factor and tokenized payments, and leverage built-in fraud protection in platforms like Shopify Protect.

  
  

Notable Breaches to Learn From

• Forever 21 (2023): Ransomware hit HR systems, exposing personal data of over 500,000 employees. The retailer offered a year of free identity-theft protection.

• Neiman Marcus (May 2024): A cloud storage breach via Snowflake exposed 31 million customer email addresses and other personal details. The hacker tried (and failed) to extort a ransom before selling the data.

  
  

Top Cybersecurity Solutions for Retail

Core Platform-Specific Tools

• Shopify POS: Granular staff permissions and PIN controls keep in-store sales secure.

• Shopify Protect: Automatically fights fraud and covers chargeback fees for Shop Pay orders.

• Lacework: Cloud security that uses machine learning to group alerts and highlight real threats.

• Arctic Wolf: 24/7 monitoring across endpoints and cloud with rapid threat detection and response.

• CyberArk: Identity-security leader protecting privileged accounts for Fortune 500 firms and beyond.

Key Cybersecurity Layers Every Retailer Should Implement

• Managed Security Service Providers (MSSPs)

If you don’t have in-house teams for continuous monitoring, incident response, or compliance, turn to an MSSP. They bundle threat detection, SOC services, and regulatory reporting under a single contract.
Example - VikingCloud: Offers turnkey MSSP services tailored to retail - handling alerts, response, and patch management so you minimize downtime and losses. 

• Web Application & DDoS Protection

Beyond perimeter firewalls, safeguard your storefront and APIs with a dedicated Web Application Firewall (WAF) and DDoS mitigation.
Example - Imperva: Provides WAF, API security, bot management, runtime application self-protection (RASP), and real-time DDoS defense - all tuned for retail traffic patterns.

• Security Information & Event Management (SIEM)

Collect and correlate logs across your network, endpoints, POS, and cloud to detect anomalies in real time.
Example - Splunk: A leading SIEM that ingests data from every system (POS terminals, inventory scanners, web servers) and helps you pinpoint fraud, insider misuse, or supply-chain breaches.

• Identity Threat Protection & MFA

Stop credential stuffing, account takeovers, and insider misuse with strong authentication and identity analytics.
Example - Okta: Its AI-driven Identity Threat Protection spots suspicious login attempts and enforces adaptive multi-factor authentication for both staff and customers.

• Data Resilience & Backup

Ransomware can encrypt your data overnight - having immutable backups and rapid restore options is critical.
Example - Rubrik: Automates backups across on-prem and cloud, delivers instant recovery, and isolates snapshots from ransomware encryption.

• Unified Security Platforms

Platforms that unify network, endpoint, cloud, and app security reduce complexity and blind spots (e.g Cloudflare).

• Ransomware Simulation & Incident Readiness

Practicing your response can cut recovery time from days to hours.
Example - Semperis: Runs live ransomware-attack simulations in your environment so you can fine-tune your playbooks before a real crisis hits.

• Access & Attack Surface Management

Continuously map your public-facing assets, third-party dependencies, and exposed credentials to close gaps.

• Keeper Security, Hadrian & Abnormal AI

These tools discover exposed credentials, stale S3 buckets, and misconfigured services - letting you lock down forgotten entry points.

Putting It All Together

A modern retail cybersecurity program combines:

1. MSSP oversight for 24/7 SOC capabilities.

2. WAF & DDoS guards (e.g. Imperva) at the edge.

3. SIEM (e.g. Splunk) to spot anomalies.

4. Identity protection & MFA (e.g. Okta) for every user.

5. Immutable backups (e.g. Rubrik) to recover fast.

6. Converged security platforms (e.g. Cloudflare) to simplify operations.

7. Tabletop & live drills (e.g. Semperis) to sharpen your response.

8. Continuous attack-surface monitoring to find and close blind spots.

By weaving these solutions together (each with its own strengths) you build a defense-in-depth posture that keeps your retail operations safe, compliant, and resilient against whatever cybercriminals throw at you.

Conclusion

A single cyberattack can cost you customers, revenue, and even force closure. By investing in strong retail cybersecurity (using the right policies, training, and tools) you safeguard your brand, build customer trust, and keep your business thriving.

The threat landscape isn’t slowing down:

• Phishing accounts for nearly half of e-commerce cyberattacks

• Ransomware is now commonplace even among small retailers

• A single supply chain vulnerability can affect thousands of stores overnight

But smart defenses don’t just react ; they prepare, detect, and recover with speed and confidence.

Your action plan starts now

• Audit your store’s risk exposure across cloud apps, POS, and third-party tools

• Deploy MFA and role-based access for every internal account

• Add WAF and bot protection to your storefront (e.g. Imperva, Cloudflare)

• Set up immutable backups and test recovery drills with a ransomware simulation

• Partner with a managed security provider if you lack in-house coverage

Cybercrime thrives on weak links. But with layered security, smart tools, and the right partners, you make your Shopify store a hard target.

Remember: Over 60% of small businesses close within six months of a major breach.

Take action today

• Educate your team on social engineering red flags and phishing tactics

• Enable Shopify Protect and segment access to supplier/payment data

• Conduct a cybersecurity tabletop exercise within the next 30 days

• Use Tightly with fraud-aware inventory controls to prevent downstream abuse

Security isn’t just IT’s job, it’s e-commerce survival. Every retailer is a potential target. But with preparation, you don’t have to be a victim.

Get started with Tightly today