Rise in Retail Fraud: Insights and Precautions for Holiday Season
Understanding the Surge in Retail Fraud During Holidays
As we approach the busy holiday shopping season, alarming statistics have emerged highlighting the surge in retail fraud. Recent data reveals a staggering 96% increase in cyber attacks targeting retailers during the Labor Day weekend. These insights, provided by Cequence, a pioneering company in API security and bot management, underscore the seriousness of the threat retailers face as they prepare for the holiday rush.
Insights from Cequence's Research on Retail Attacks
Cequence’s threat research team, known for its expertise in monitoring cyber threats, analyzed billions of transactions across its retail clients, which include some of the biggest names in the industry. Their findings illustrate that malicious activity has ramped up significantly, posing substantial risks to businesses and their customers.
Key Findings from Cequence's Security Analysis
The data gathered by Cequence paints a vivid picture of the escalating challenges faced by retailers:
- Retailers Under Siege Labor Day Weekend: Retailers experienced an alarming 96% surge in attack traffic this holiday compared to the previous year.
- Bots Up Their Game for the Holidays: In addition, there was a 79% increase in blocked bot traffic hitting retail systems.
- Cybercriminals Target Retailers with Account Takeovers: Cequence successfully thwarted over 26.69 million attempts at account takeovers during this busy shopping period.
- Attack Traffic Soars for Major Retailer: A notable retailer reported a 435% increase in blocked bot traffic during a recent sales event, with malicious traffic skyrocketing by 2,724% above normal levels, highlighting the severity of the threat.
- Cybersecurity Gaps Prove Costly for Retailers: Without robust security measures, retailers stand to lose an estimated $60,000 every hour during high-traffic seasons.
- Latest iPhone Drives Spike in API Calls: The launch of the iPhone 16 resulted in Cequence managing over 6.7 billion API calls, with 37% of that traffic identified as malicious.
The Vulnerability of Retailers During Holiday Shopping
William Glazier, Director of Threat Research at Cequence, noted that the holiday season often creates an environment laden with vulnerabilities. Reduced staffing levels combined with increased online activity due to sales and promotions creates a prime opportunity for cybercriminals to take advantage. Such vulnerabilities can result in serious financial impacts for retailers without a solid attack prevention strategy.
Recommendations for Retailers to Enhance Cybersecurity
To counter these threats, Cequence advises retailers to prioritize their cybersecurity measures proactively. Here are some essential steps they recommend:
- Practice, Practice, Practice: Retailers should regularly assess their security policies and procedures and conduct drills tailored to their unique circumstances to prepare for potential attacks.
- Know What to Protect: Keeping an updated inventory of all public-facing applications and APIs is crucial, as many attacks exploit unprotected endpoints.
- Prioritize Business Goals: Identifying key drivers of success is essential - whether improving speed or user experience should dictate security measures.
- Leverage Security Systems: Multi-factor authentication and regular monitoring for unusual activity can greatly reduce the likelihood of a successful attack.
- Monitor User Activity: Retailers should closely track user login patterns for signs of any irregularities, such as excessive login attempts from different global IP addresses.
Glazier emphasizes the importance of urgent action in enhancing security measures, stating, 'Now is the time for retailers to establish robust strategies to outpace threat actors as the peak shopping periods approach.'
About Cequence Security
Cequence stands out as a trailblazer in API security and bot management. Their Unified API Protection (UAP) technology seamlessly blends discovery, compliance, and protection against attack and targeted fraud across various APIs. Designed to meet the demands of organizations, including Fortune 500 and Global 500 companies, Cequence safeguards billions of daily API interactions and protects over three billion user accounts. Their solutions can be easily deployed in under 15 minutes without needing extensive coding or app integration, offering flexibility through SaaS, on-premises, or hybrid models.
Frequently Asked Questions
What does the rise in retail fraud signify for businesses?
The 96% increase in retail fraud highlights the need for businesses to enhance their cybersecurity measures to protect against potential losses.
How can retailers prepare for the upcoming holiday shopping season?
Retailers should conduct assessments of their cybersecurity practices and ensure they have layered defenses against potential attacks.
What role does bot traffic play in retail cyber attacks?
Increased bot traffic can overwhelm systems and lead to unauthorized account access, making it crucial to block malicious bots effectively.
Why are retailers particularly vulnerable during holiday sales?
High traffic and reduced staffing levels during peak sales lead to increased vulnerability, making them easier targets for cybercriminals.
What can retailers do to monitor user activity effectively?
Retailers should analyze login patterns and implement systems to flag unusual behavior that could indicate compromised accounts.
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