Cybersecurity / Data breaches

Common types of cyberattacks affecting retailers include supply chain attacks, data breaches, and phishing. These attacks can disrupt sales, lead to blocked orders, and result in empty shelves due to operational disruptions[1][5].

Retail cyberattacks can expose personal data, which may lead to future phishing and fraud attempts. This can erode customer trust and increase the risk of identity theft and financial fraud[3][5].

Unknown vulnerabilities refer to security weaknesses in a company's systems or processes that have not yet been identified or addressed by the organization. These hidden gaps can be exploited by attackers to gain unauthorized access, leading to data breaches. Because these vulnerabilities are not known, companies cannot protect against them until they are discovered and mitigated, which highlights the importance of proactive cybersecurity measures such as continuous monitoring and vulnerability assessments.

Having clarity on cyber risk means that an organization understands its specific vulnerabilities, threat landscape, and potential impacts of cyberattacks. This knowledge empowers companies to prioritize security efforts, allocate resources effectively, and implement targeted defenses to prevent breaches. Clear insight into cyber risks reduces uncertainty and enables faster, more informed decision-making, ultimately enhancing the organization's resilience against cyber threats.

Offensive security training involves learning how attackers think and operate by practicing ethical hacking, penetration testing, and other offensive techniques. This training is important for all security team members because it provides critical insights into attacker methods, enabling the entire team to strengthen the organization's security posture. It moves beyond just red teams and penetration testers, helping non-offensive roles better understand threats and respond more effectively to evolving cyberattacks.

Offensive security training helps organizations proactively identify vulnerabilities before attackers exploit them by simulating real-world attacks. It improves incident response by enabling security teams to develop more effective detection, response, and recovery strategies. Additionally, it raises security awareness among employees and supports regulatory compliance efforts, making the organization more agile and resilient against the increasing volume and sophistication of cyber threats.

Data breaches persist even with higher cybersecurity investments because many breaches are caused by human error, sophisticated cyberattacks such as zero-day exploits, and supply chain vulnerabilities. Additionally, the complexity and evolving nature of cyber threats make it difficult for organizations to fully prevent breaches despite spending more on security measures.

The average cost of a data breach reached a record high of approximately $4.88 million in 2024, reflecting significant financial losses for affected organizations. These costs include remediation, legal fees, regulatory fines, and reputational damage, which can severely impact business operations and profitability.

Machine credentials, which authenticate non-human entities like servers and APIs, are often less protected than human accounts and provide persistent access to critical systems. Attackers exploit these credentials to bypass authentication controls, move laterally across networks, and maintain long-term access without detection.

Third-party vendors often have access to organizational systems but may lack robust security measures. Compromised third-party credentials or misconfigured access permissions allow attackers to infiltrate primary targets through supply chain weaknesses, as highlighted by the Verizon 2025 report's focus on escalating breaches tied to these exposures.

Third-party involvement in cyberattacks has doubled to 30% of breaches, indicating that cybercriminals are increasingly exploiting vulnerabilities in partners and suppliers to gain access to target organizations. This trend underscores the need for businesses to enhance their cybersecurity measures by closely monitoring and securing their supply chains.

Third-party attacks often occur when cybercriminals exploit vulnerabilities in a partner or supplier's systems to gain unauthorized access to a target organization. To mitigate these risks, organizations should implement robust access controls, conduct regular security audits of their partners, and adopt a zero-trust framework to limit potential damage from compromised third-party connections.

Per-member payouts depend on class size and settlement terms, ranging from $0.50 to $12.65 per claimant. Smaller class sizes typically yield higher individual payouts, while attorney fees (often ~30% of settlements) and security improvement costs reduce available funds.

Settlements often require companies to implement enhanced cybersecurity measures, such as real-time monitoring systems and multi-year security audits, alongside identity protection services for affected individuals.