A new study from IDC predicts retailers will spend $5.9 billion this year alone on artificial intelligence (AI) tools like automated customer service and product recommendations. Furthermore, 79 percent of retail and consumer products companies expect to use intelligent automation to learn more about their customers by 2021. Yes, retailers are making big investments in machine learning and automation, and the returns so far are strong — but they're unevenly distributed. The biggest beneficiaries of these trends are the already powerful retail giants like Amazon.com, Walmart or Target. That’s because these powerhouses have one, the largest pools of consumer data to feed their models and, two, the resources to build, test and deploy AI at scale. Click Read More below for additional information.
A new study from Verizon indicates retailers are facing new cyberattack trends.
According to the 2019 Verizon Data Breach Investigations Report (DBIR), 97% of 234 analyzed cyberincidents in the retail industry (139 with confirmed data disclosure) were financially motivated. The remaining 3% were committed for fun or espionage purposes.
One of the biggest developments tracked by the DBIR is a movement away from “card present” attacks on physical card payments. POS compromises represented 6% of retail incidents in 2018, compared to 63% in 2014. The percentage of incidents represented by payment card skimmers fell to 3% from 6% in the same time period.
However, cyberattacks involving web applications comprised 63% of incidents in 2018, compared to 5% in 2014. Privilege misuse increased to 10% of incidents from 3% in the same time period. This shows that hackers are clearly shifting their attention to e-commerce payment applications, as opposed to physical POS or card reader systems located in a store or attached to a gas pump.
Most attacks (81%) involved external actors breaching retailer security systems, as opposed to internal compromises. Payment data was most frequently compromised (64%), followed by credentials (20%), and personal information (16%).
Verizon analysis suggests that EMV regulations requiring chips to authenticate transactions with physical payment cards have diminished the value proposition of card-present fraud for cybercriminals, who are instead targeting e-commerce transactions.
Moving forward, Verizon offers three recommendations for retailers seeking to avoid being victimized by cybercriminals:
more at source: https://www.chainstoreage.com/operations/study-cybercriminals-shift-approach-to-retail/