Effective DSPM Strategies for Data Security in the Retail Industry Rob Bolton

The retail sector continues to grow rapidly, particularly following the COVID-19 pandemic, as more and more people shop online. Currently, more than 26.6 million online retailers operate globally. Many of these online businesses also have brick-and-mortar stores with staff, cashiers with physical point-of-sale (POS) systems, and extensive geographically distributed networks of logistics and payment systems.

What makes the retail industry a prime target for cyberattacks?The retail sector attracts cybercriminals because of:

Higher volumes of a variety of personal and financial data is generated, accessed, and stored in silos
Complex multicloud environments and modern services adoption lead to a huge attack surface of unregulated and unmonitored data
Relationships with third-party service providers, vendors, and suppliers, provide ample opportunities to exploit vulnerabilities
Easy-to-exploit weak points, due to dependence on traditional security infrastructure, unskilled workforces, and limited resources

The IBM Cost of a Data Breach Report 2024 reveals that data breaches are becoming more expensive for the retail segment. The average cost of a retail data breach jumped to $3.48 million in 2024, from $2.96 million in 2023—an 18% increase. An IBM threat intelligence report also revealed that 50% of retail cyberattacks include extortion, and 25% include credential harvesting.

Many retail data breaches go unreported, and the full extent of the damage is rarely publicized even in those that do make headlines.

Impact of data breachesAs they rely more on technology and digital platforms, retailers face a swell of cyberthreats targeting them for customer and financial data. Recently, a ticket sales and distribution company experienced a data breach affecting some 560 million customer records that included order history, payment information, names, addresses, and email data.

Data loss can have significant financial impact stemming from regulatory fines, business disruption, and long-term brand reputation damage.

Overcoming data security challenges in the retail industryRetailers face numerous security challenges in today’s dynamic landscape. Understanding these is critical in order to implement strong security measures to protect sensitive data and prevent financial damage. Let’s look at some common threats and challenges, and why comprehensive data security and risk mitigation are so important.

Complex environment and targeted attacksMost retail organizations deploy end-to-end technologies for their logistics and finance operations. They deal with multiple third-party providers for cloud services, POS systems, and ecommerce apps. Moreover, with large distributed networks, millions of connected devices, and reliance on third-party services, misconfiguration and vulnerabilities are common, making them easy targets. In these complex environments, security teams struggle to secure data against evolving threats and targeted attacks.

Insider threats—the human factorThe retail industry includes a large number of unskilled labor roles; untrained or unaware employees can create security risks. Following phishing links or falling for social engineering techniques are relatively common mistakes in the retail industry. The global shortage of skilled cybersecurity experts also exacerbates this.

The importance of privacy compliance in data-driven retail As retailers operate in multiple geos and jurisdictions, they are challenged to keep pace with evolving data privacy laws and regulations. Some of the key regulations include:

Payment Card Industry Data Security Standard (PCI DSS), which requires retailers to ensure the security of cardholder data
Health Insurance Portability and Accountability Act (HIPAA), which requires retailers in pharmacy operations to secure PHI and ensure privacy compliance
Federal Trade Commission (FTC) regulations, which require retailers engaged in marketing practices to protect consumer data
The Gramm-Leach-Bliley Act (GLBA), which applies to retailers that collect, store, and use financial records containing PII
EU General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), which enforce data management requirements for residents of specific jurisdictions

So, targeted attacks are rising, and the costs of breaches and fines are climbing. The acute shortage of trained security professionals continues while IT budgets are shrinking. How can ‌retail organizations deal with data security and regulatory compliance challenges and secure sensitive data?

The fundamental role of DSPM in retail environmentsSecuring data—especially sensitive and regulated data—is a top priority for retailers. Data security posture management (DSPM) is a comprehensive solution that automates the process of securing sensitive data, making it easier for retailers to meet regulations and protect customer data. DSPM provides a centralized platform for managing and monitoring sensitive data across the entire retail enterprise. It allows retailers to:

Identify and classify sensitive data
Apply appropriate security controls to protect sensitive data
Monitor sensitive data for suspicious activity
Respond to security incidents quickly and effectively

With complete visibility into data, where it lives, who can access it, and how it’s being used, DSPM safeguards retail data from external and internal threats as well as unintended exposure. Some of the key benefits include:

Complete coverage

DSPM offers complete coverage across major platforms like AWS, Azure, and GCP. It provides comprehensive visibility into file location, categorization, classification, access permissions, and compliance risks. This helps identify misconfigurations, improper access controls, and vulnerabilities that could lead to data breaches.

Risk management

To deal with supply chain risks and new threats, DSPM uses AI, machine learning, and advanced threat correlation to continuously assess, find, and fix hidden risks and prevent data leaks or breaches. This helps reduce business downtime and makes sure sensitive data is safe. It also helps security teams ‌enforce least-privileged access control.

Streamlined workflows and response

DSPM reduces the burden on security teams with automation and integration. It allows security teams to enforce consistent security policies, configure alerts and notifications regarding configuration errors, data exposure, suspicious movements, or accesses. This enables them to promptly investigate and remediate, limiting potential damage. DSPM also seamlessly integrates with existing security stacks like ITSM, SIEM, and ChatOps tools to streamline and automate workflows.

Regulatory compliance

DSPM helps retail organizations automate compliance with precise data classification based on a specific retailer’s business; regulatory frameworks such as PCI DSS, GDPR, CCPA; and more using straightforward rules and policies, helping them avoid hefty legal penalties and maintain customer trust.

Address critical data security challenges with Zscaler DSPM The non-stop nature of business, securing a high volume of sensitive data, dealing with emerging threats, and managing vulnerabilities across a diverse environment make data security in retail a challenge.

Zscaler understands the retail industry’s unique data security challenges. That’s why retail organizations should use Zscaler DSPM to secure data, control exposure and access, and meet compliance standards even as they multiply data collection, sharing, and monetization efforts.

To learn more about Zscaler DSPM, request a demo. Our team will work with you to assess your current data security posture, identify potential vulnerabilities, and share recommendations to maximize protection and efficiency.

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