How cybersecurity threats are targeting retail network infrastructures

As digital technology expands ecosystems, the retail industry stands at the forefront of payments innovation, integrating advanced systems such as cloud computing, Internet of Things (IoT) devices, and sophisticated Point of Sale (PoS) platforms to enhance customer experiences and streamline operations.

While these advancements offer significant benefits, they also introduce various cybersecurity challenges that retailers must navigate to protect sensitive customer data and sustain operational integrity.​

The increasing reliance on interconnected technologies has expanded the attack surface for cybercriminals, making retail networks more susceptible to cyber threats. Recent reports indicate a surge in device vulnerabilities across IT, IoT, Operational Technology (OT), and the Internet of Medical Things (IoMT), underscoring the urgency for robust cybersecurity measures in the retail sector.

Furthermore, the financial implications of cyber incidents are substantial. The average data breach cost in the retail industry has escalated, reflecting the growing sophistication of cyberattacks and the critical need for comprehensive security strategies.

According to the latest WEF Global Cybersecurity Outlook 2025, organisations prioritizing cybersecurity collaboration and advanced technologies are better equipped to handle the complexities of the current threat landscape. ​

As retailers adapt to the digital age, understanding and mitigating cybersecurity threats are paramount to safeguarding assets, ensuring customer trust, and sustaining long-term business success.​

Legacy Hardware and Network Exploits: A New Attack Vector

Cyber adversaries are increasingly targeting outdated network infrastructure components, such as legacy routers and switches, which often lack the latest updates on modern security features and are no longer supported by manufacturers.

A notable example is the Chinese state-sponsored group UNC3886, which exploited end-of-life Juniper Networks MX Series routers to deploy custom backdoors, enabling persistent access and espionage activities. This campaign, identified by Mandiant in March 2025, underscores the critical risks of maintaining obsolete hardware in retail environments. ​

Rising Threats: Ransomware and Credential Theft in Retail

The retail sector has witnessed a significant uptick in ransomware attacks, in which malicious actors encrypt critical data and demand ransom payments for its release. According to IBM's recent 2024 Cost of a Data Breach Report, the global average data breach cost reached $4.88 million, marking a 10% increase from the previous year. These escalating costs highlight the financial impact of ransomware incidents on retailers. ​

Credential theft has also emerged as a prevalent threat, with attackers using stolen credentials to gain unauthorized access to retail systems. Verizon's 2023 Data Breach Investigations Report indicates that compromised credentials were involved in nearly 38% of breaches analyzed, emphasising the need for robust authentication measures in the retail industry. ​

Operational Disruptions and Omnichannel Vulnerabilities

Cyberattacks targeting network infrastructure can cause severe operational disruptions in retail settings. For instance, in February 2025, Raymond Limited, a prominent textile and apparel conglomerate, reported a cyberattack affecting some of its IT assets. The company promptly initiated containment and remediation measures, ensuring that core systems and customer operations remained unaffected. ​

The interconnected nature of omnichannel retail strategies further amplifies vulnerabilities. A breach in one component, such as an e-commerce platform or supply chain management system, can have cascading effects across the entire network. A report by DNV in March 2025 revealed that half of critical infrastructure organisations lack sufficient visibility into their supply chains, exposing them to potential cyber threats introduced by third-party vendors. ​

Proactive Defence Strategies for Retailers

To mitigate these evolving threats, retailers must adopt proactive and comprehensive cybersecurity strategies:

●      Zero Trust Architecture: Implementing a Zero Trust model ensures that no entity, whether inside or outside the network, is trusted by default. This approach requires continuous verification of user identities and device integrity, significantly reducing the risk of unauthorised access.

●      Regular Hardware and Software Updates: Maintaining up-to-date hardware and software is crucial. Replacing end-of-life equipment and applying timely patches can close vulnerabilities that attackers might exploit.

●      Employee Training and Awareness: Human error remains a significant factor in security breaches. Regular training programmes can educate staff about recognising different types of phishing attempts and following best practices for data security.

●      Incident Response Planning: Developing and regularly updating incident response plans enables retailers to respond swiftly and effectively to security incidents, minimising potential damage.

Modern PoS platforms like the SpotOn’s PoS system are designed to enhance operational efficiency in high volume dining environments, where speed and security are critical. It is standard for reputable PoS systems to integrate encryption and adhere to PCI DSS compliance to protect transaction data.

Additionally, incorporating software hardening features is a common practice to enhance system security further. These systems often support functionalities that contribute to operational agility and help maintain compliance with industry standards.

Building Resilience Through Collaboration and Advanced Technologies

Enhancing cybersecurity resilience requires collaboration across the retail industry and the adoption of advanced technologies:​

●      Industry Collaboration: Sharing threat intelligence and best practices with industry peers can provide early warnings about emerging threats and collective strategies for mitigation.​

●      Artificial Intelligence and Automation: Leveraging AI driven security solutions can improve threat detection and response times. According to IBM's 2024 report, organisations that extensively used security AI and automation experienced an average cost savings of $2.22 million versus  those that did not. ​

Strengthening Retail Cybersecurity in a Dynamic Threat Landscape

​As cyber threats targeting retail network infrastructures evolve in complexity and frequency, retailers must adopt a proactive and comprehensive cybersecurity strategy. This includes implementing robust security architectures, such as Zero Trust models, which ensure that no entity is trusted by default, thereby minimizing unauthorized access risks.

Regularly updating and patching systems, especially replacing end-of-life hardware, is crucial to close vulnerabilities that cybercriminals might exploit. Additionally, investing in employee education programmes can significantly drop the risk of human error, which remains a leading cause of security breaches.​

Collaboration within the retail industry and with cybersecurity experts is also vital. Sharing threat intelligence and industry best practices can provide early warnings about emerging threats and collective mitigation strategies. Leveraging advanced technologies in the context of security, such as artificial intelligence (AI) and machine learning, can significantly enhance threat detection and lower response times, providing a more resilient defence against sophisticated cyberattacks.

As the retail sector becomes increasingly digital, the importance of cutting-edge, robust cybersecurity measures cannot be overstated. By addressing vulnerabilities in legacy systems, implementing comprehensive security frameworks, fostering industry collaboration, and embracing technological advancements, retailers can safeguard their operations, protect sensitive customer data, and keep trust in an era where cyber threats are an ever present challenge.