Singapore's retail sector faces increased cyber threats this holiday season

The majority of breaches were caused by system intrusions and social engineering.

The retail sector in Singapore is bracing for an increased risk of cyberattacks as the 2024 holiday shopping season begins.

According to Verizon's 2024 Data Breach Investigations Report (DBIR), the period from late November to January, which includes Black Friday, Christmas shopping, and end-of-season sales, is a crucial time for retailers, driving a significant portion of their annual revenues. However, this season also marks an uptick in cyberattacks targeting companies handling vast amounts of customer data.

The report analysed over 725 incidents in the retail industry, with 369 resulting in data theft.

The majority of breaches were caused by system intrusions, social engineering, and web application exploits, with external actors accounting for 96% of the attacks. Pretexting, a form of social engineering, is now more common than traditional phishing.

Retailers, now more reliant on online sales, digital transitions, and loyalty programs, must take proactive steps to strengthen their cybersecurity infrastructure, the report said.

It also cited the importance of investing in updated IT solutions and employee training to mitigate the risks of data breaches.

Failing to do so could lead to both direct financial losses and long-term damage to a company's reputation, particularly regarding consumer trust in the security of personal and payment data.