Choosing the Right Cyber Protection for your Retail Business

Choosing the Right Cyber Protection for your Retail Business

In 2025, retail businesses face a digital dilemma. The very technologies that enhance customer experiences and streamline operations also open new doors for cyber criminals. From ransomware to phishing to supply chain breaches, cyber-attacks are now a routine risk for retailers of all sizes.

Cyber security in the retail sector is no longer just a compliance concern. It is a core business priority.  Every endpoint, from payment platforms to point-of-sale devices, are now a potential entry point.

No business is too small or too large to become a target.

Retail’s Changing Threat Landscape

Ransomware remains one of the most disruptive cyber threats facing retailers. These attacks are no longer sophisticated, manual efforts. They are automated, opportunistic, and often indiscriminate.

A striking example occurred when food distributor Peter Green was hit by ransomware, which halted deliveries to major UK supermarkets. The resulting operational disruption shows how a single breach can have widespread consequences.

To counter ransomware, retailers should consider purpose-built protection tools that combine prevention, detection, and recovery with minimal downtime. Endpoint Detection and Response (EDR) solutions are also vital, providing continuous monitoring and immediate reaction to suspicious activity.

Phishing continues to be the most common method attackers use to breach retail systems. High staff turnover, a mix of frontline and office workers, and seasonal hiring all contribute to a low level of awareness in many organisations.

In 2023, JD Sports experienced a major data breach affecting ten million customers, believed to have started with a phishing email. Harrods also faced email spoofing attempts during peak trading in 2024.

Training employees in cyber awareness is essential, particularly before major promotional events or holiday periods. Other methods such as Email Security Protection add another essential layer by blocking malicious attachments, preventing impersonation, and detecting suspicious links before they reach staff.

Supply chain attacks are also on the rise. Retailers depend on a wide range of external partners and these connections create vulnerabilities. The Blue Yonder breach, which impacted operations at Morrisons and Sainsbury’s, highlighted the risks of third-party compromise.

Zero Trust Network Access (ZTNA) helps to address this challenge. By limiting each user’s access to only what is necessary, ZTNA ensures systems remain protected even if credentials are compromised. Adding multi-factor authentication (MFA) can further reduce the risk of unauthorised access.

Addressing the Cyber Security Skills Gap

Another significant challenge is the shortage of cyber talent. The UK retail sector currently faces a widespread cyber security skills gap, with over 600,000 businesses lacking even the basic expertise to manage their own defences.

Managed Security Service Providers (MSSPs) offer an increasingly popular solution. They provide continuous monitoring, access to enterprise-grade tools such as SIEM and NDR, and expertise to help detect and respond to the latest threats. Crucially, they allow retailers to maintain strong defences without needing to build large in-house security teams.

However, not all MSSPs are the same. Retailers should look for providers with deep knowledge of the retail landscape and a proven ability to protect point-of-sale systems, supply chains, and customer data. A strong MSSP partner ensures that your business remains secure, compliant, and resilient.

Why Cyber Insurance Is Not Enough

Cyber insurance can help reduce the financial impact of an attack, but it is not a replacement for effective cyber protection. Insurance cannot recover lost data or rebuild a damaged reputation. And in today’s environment, securing cyber insurance is becoming more difficult and more expensive.

Insurers are demanding higher standards from applicants, often requiring proof of MFA, employee training, and endpoint protection. Failing to meet these conditions may result in reduced cover or denied claims. Policies also increasingly include exclusions for state-sponsored attacks, further limiting their scope.

Cyber insurance is therefore only part of a wider risk management strategy. Businesses must still invest in proper cyber defences.

Retail Cyber Hygiene

Despite advances in technology, human error remains one of the biggest weaknesses in retail cyber security. Social engineering is now considered a form of organised crime, rather than opportunistic fraud.

In early 2025, there was a 74 per cent increase in ransomware attacks on UK retailers. The group known as Scattered Spider was responsible for several high-profile incidents, including attacks on Marks & Spencer and The Co-operative. M&S experienced online sales losses estimated at £3.8 million per day, while its market value fell by £700 million.

Following this surge, many retailers are now facing cyber insurance premium increases of up to 10 per cent.

This highlights the importance of proactive, well-maintained cyber hygiene practices across all areas of the business. Preventing attacks must now be considered essential to protecting revenue, reputation, and long-term viability.

Cyber Security Is Business Security

In 2023 alone, UK retailers lost an estimated £11.3 billion to cyber crime, including fraud and data breaches. High-profile brands such as Harvey Nichols have suffered incidents that shook customer trust and raised questions about the adequacy of their defences.

Despite growing awareness, many retailers still underestimate the sophistication of modern threats. Cyber security must be treated as an ongoing, strategic priority, not a one-off investment. Every member of staff plays a role in maintaining a secure environment.

Simple mistakes, like clicking a phishing link or using a weak password, can lead to massive disruption. With training, clear policies, and strong partnerships, these risks can be reduced.

Robust cyber protection is essential for operational continuity, regulatory compliance, and brand integrity. With the right support and technology in place, retail businesses can face the future with confidence.