15+ Retail Cybersecurity Statistics for 2026: Threats and Protection

Retailers face escalating cyber risk, and the newest retail cybersecurity statistics confirm what many store owners already suspect: the threat landscape continues to fundamentally shift. Independent retailers now manage more cloud tools, payment options, and digital touchpoints than ever before, and every new integration expands the attack surface that criminals can exploit.

Each new year seems to bring a new inflection point. Sophisticated phishing campaigns, ransomware operations, and third-party platform vulnerabilities that once targeted only big tech and major banks are now hitting retailers of all sizes.

This article examines the concrete data that shows how significant the risk has become—and offers practical next steps small and midsize (SMB) retailers can implement without enterprise-level budgets.

Key retail cybersecurity statistics for 2026

Data breaches have become dramatically more expensive, and US retailers face the highest costs on earth. Globally, the average data breach costs $4.44 million, while breaches affecting US organizations averaged $10.22 million each in 2025—an all-time high. For the 15th consecutive year, the US has led the world in average costs for data breaches. Even when a retailer’s incident is far smaller than an enterprise-scale event, the per-record costs, legal exposure, and remediation expenses can be punishing.

Total cybercrime losses are accelerating rapidly. The FBI’s Internet Crime Complaint Center reported $16 billion in losses for 2024, a 33% increase from the $12.5 billion reported in 2023. This year-over-year surge signals that 2025 has not been business as usual: criminal operations are scaling faster than defenses.

For retailers, one of the most troubling patterns involves what attackers actually steal. Nearly half of all breaches (46%)involved customers’ personally identifiable information (PII), including names, email addresses, payment details, and purchase histories. This is data that independent retailers collect every day through their ecommerce platforms, point-of-sale (POS) systems, and loyalty programs. Breaches don’t just hit abstract corporate databases—they expose the customers who trusted you with their information. Strong fraud prevention strategies have become essential for protecting customer data, customer relationships, and revenue.

These numbers raise the question: why has retail become such a frequent target? The answer lies in the industry’s unique vulnerabilities.

Why is the retail industry a prime target for cyberattacks? 

Retailers sit at the intersection of payment data, personal data, and always-on digital traffic—a combination that makes them attractive to financially motivated attackers. Understanding why the retail sector draws so much attention is the first step toward building effective defenses.

Several structural factors make retail environments particularly vulnerable:

• High transaction volume in card-not-present environments: Ecommerce retailers process thousands of online transactions where the physical card never appears. Each transaction represents a potential fraud opportunity, and the sheer volume creates statistical cover for criminals testing stolen credentials.
• Sprawling attack surfaces: A typical omnichannel retailer operates POS terminals, an ecommerce platform, mobile apps, inventory management systems (IMS), and connected IoT devices like smart displays, near field communication (NFC) payments, or security cameras. Each system represents a potential entry point, and many SMBs lack the IT resources to monitor them all continuously.
• High staff turnover and credential exposure: The retail sector’s traditionally high employee turnover means credentials are constantly being created, shared, and (often inadequately) revoked. Former employees may retain access longer than they should, and seasonal hires may receive broader permissions than necessary to speed up onboarding during peak seasons.
• Third-party vendor dependencies: From payment processors to marketing-automation tools to fulfillment partners, retailers rely on dozens of external services that may touch customer data. Each vendor relationship expands your security perimeter—and your risk.
• Seasonal spikes that strain resources: Holiday rushes, flash sales, and promotional events create periods of intense activity when security teams—if they exist at all—are stretched thin. Attackers know that November and December offer prime opportunities to slip through overwhelmed defenses.

According to the Retail and Hospitality Information Sharing and Analysis Center (RH-ISAC), annual retail security incidents increased from 725 to 837 between 2023 and 2024, while confirmed breaches rose from 369 to 419. Retail now ranks as the seventh-most targeted industry by incident count. Consumer-facing sectors including retail, restaurants, hospitality, and travel consistently appear among the most frequently attacked.

RH-ISAC's data also shows that customer PII is among the most commonly compromised record types—which explains why retail POS systems, loyalty programs, and ecommerce accounts are especially valuable targets. Attackers follow the money and the data, and retailers have both in abundance.

Effective retail risk management requires understanding not just whether you’re a target, but exactly which threats and attack types you’re most likely to face in 2026.

The most common retail cybersecurity threats

Retail cybersecurity threats have evolved. Today’s attackers deploy sophisticated, often automated campaigns that target everything from employee credentials to third-party software dependencies. 

Understanding each threat category—and the specific defenses to counter it—allows SMB retailers to prioritize their limited security resources effectively.

Credential phishing attacks

Phishing is a form of social engineering that exploits human error rather than network weaknesses.

Criminals use fake emails, texts, or calls to pose as trusted people or brands and trick victims into sharing data, clicking on harmful links, or downloading malware.

The FBI’s Internet Crime Complaint Center recorded 193,407 phishing and spoofing complaints in 2024, making it the single most reported cybercrime category for the year. For retailers specifically, RH-ISAC data shows phishing accounted for 25% of reported threats—retaking first place in 2024 after briefly dropping behind other attack types.

The attack chain typically unfolds in predictable stages:

1. A retail employee receives an email that appears to come from a trusted source—a vendor, a payment processor, or even their own IT department.
2. They click a link.
3. They enter their credentials on a convincing fake login page.
4. Unwittingly, they hand attackers the keys to ecommerce admin panels, POS back-end systems, email accounts, or payroll platforms.

Phishing campaigns range from mass “spray-and-pray” efforts to highly targeted business email compromise (BEC) attacks. BEC schemes often focus on finance and HR staff, impersonating executives to authorize fraudulent wire transfers or payroll changes. A single successful BEC attack can cost tens of thousands of dollars before anyone notices.

Effective defense against phishing requires multiple layers:

• Phishing-resistant multi-factor authentication (MFA) on all critical systems, particularly hardware security keys or authenticator apps rather than SMS-based codes that can be intercepted
• Email security filters that scan for malicious links, suspicious sender patterns, and known phishing infrastructure
• Simulated phishing training that gives employees practice identifying attacks in a low-stakes environment
• Strict approval workflows requiring out-of-band verification (such as a phone call to a known number) before processing any request to change bank accounts, payment methods, or login credentials

Implementing strong account security practices across your organization significantly reduces the likelihood that a phishing email will lead to a full breach.

Malware and data theft

Malware (or malicious software), such as Trojans and viruses, infiltrates retail systems through third-party software downloads, phishing emails with compromised links or attachments, or supply chain vulnerabilities.

Once it’s in your network, malware can steal customer information such as credit card details, login credentials, and financial data. POS systems are particularly vulnerable. 

The RH-ISAC 2025 industry report documented 4,712 threat events published to its Malware Information Sharing Platform (MISP) during 2024, containing 51,094 unique indicators of compromise. Notably, malware families like FAKEUPDATES—which tricks users into downloading malicious files disguised as browser updates—increased exponentially throughout the year.

There are many ways for malware to enter a retail environment:

• “Malvertising” campaigns place infected ads on legitimate websites that employees or customers visit. 
• Compromised plugins for ecommerce platforms can contain hidden back doors. 
• Pirated software installed on back-office machines often includes bundled malware.
• Macro-laced email attachments remain a persistent threat, particularly for finance and operations staff who regularly receive invoices and spreadsheets.

Once inside a network, malware targets the data that commands the highest prices on criminal marketplaces: payment card numbers, login credentials for banking and ecommerce platforms, and customer PII that enables identity theft and account takeover fraud.

Effective malware defenses include:

• Endpoint detection and response (EDR) software on all back-office machines and servers, not just employee workstations
• Strict software whitelisting that prevents unapproved applications from running
• Automated patching that closes known vulnerabilities before attackers can exploit them
• Vendor hygiene protocols that vet ecommerce themes, plugins, and apps before installation and monitor them for suspicious updates

Ransomware encryption

Ransomware is a tool criminals use to encrypt company data and demand ransom payment for decryption. Many businesses just agree to pay to avoid extended disruptions.

Ransomware has evolved from a rare nightmare scenario into an everyday operational risk—one that increasingly targets midsize and specialty retailers rather than just enterprise corporations. Ransomware prevalence rose 37% from 2023 to 2024, and ransomware or extortion now accounts for 44% of all breaches across industries.

For SMB retailers, a ransomware attack can be existential. Encrypted POS servers block in-store sales. Locked ecommerce platforms prevent online orders. Frozen inventory and fulfillment systems mean no shipments. Beyond operational paralysis, modern ransomware gangs practice “double extortion”—stealing customer data before encrypting systems, then threatening to publish it unless additional ransoms are paid.

The steps that make up a cyberattack are known as the “kill chain.” Understanding the ransomware kill chain helps retailers identify intervention points:

• Initial access through phishing, exposed remote desktop services, or vulnerable software
• Privilege escalation as attackers move from a single compromised account to administrative control
• Data exfiltration as attackers copy sensitive files to external servers
• Encryption and extortion as attackers lock systems and demand payment

Defending against ransomware requires preparation across multiple fronts:

• 3-2-1 backup strategy, meaning three copies of critical data, on two different media types, with one copy stored offsite or in immutable cloud storage that attackers cannot delete
• Network segmentation that limits an attacker’s ability to move laterally from a compromised system to critical infrastructure
• Rehearsed incident response plans that define exactly who does what when an attack is detected

DDoS attacks

Distributed denial of service (DDoS) attacks happen when attackers flood websites with traffic using botnets (connections of infected machines), creating downtime and revenue loss. 

These attacks increasingly piggyback on bot traffic and AI-driven scripts, with retailers facing particularly intense pressure around peak shopping windows. Between April and September 2024, retailers faced over 560,000 AI-driven automated attacks per day—a category that includes fraudulent purchase attempts, account takeover efforts, and DDoS campaigns.

A successful DDoS attacker can knock out ecommerce storefronts during flash sales, disable payment gateway connections at checkout, disrupt in-store Wi-Fi that POS terminals depend on, or overwhelm APIs that connect inventory systems across channels. Every minute of downtime during peak traffic translates directly into lost revenue and frustrated customers.

DDoS attacks come in two primary forms:

• Volumetric attacks flood network connections with more traffic than infrastructure can handle.
• Application-layer attacks are more sophisticated, targeting specific functions—like submitting endless cart additions or search queries—that consume server resources without obviously overwhelming bandwidth.

Protecting against DDoS requires infrastructure-level defenses:

• Content delivery networks (CDNs) that absorb volumetric attacks across distributed global infrastructure
• Web application firewalls (WAFs) with DDoS protection rules that identify and block malicious traffic patterns
• Rate limiting that prevents any single IP address from overwhelming specific endpoints
• Preconfigured “under attack” modes with hosting providers that can be activated quickly when an attack begins

Web app vulnerabilities

Hackers exploit weaknesses in ecommerce platforms to steal customer information through malicious code injection, database query manipulation, or cookie tampering. Exploitation of vulnerabilities as an initial access vector grew 34% year over year to account for 20% of all breaches in 2024.

For retailers, this trend means a number of concrete risks:

• Outdated plugins on your ecommerce platform may contain known vulnerabilities with publicly available exploit code.
• Themes that haven't been updated in years can harbor security flaws.
• Custom integrations built by agencies or freelancers may lack basic security controls.
• Exposed admin panels with default or weak credentials offer attackers direct access.

The rise of headless commerce and API-first architectures has expanded the attack surface further. Inventory APIs, pricing endpoints, loyalty program integrations, and third-party shipping connections all represent potential entry points that must be secured.

Essential defenses for web application security include:

• Automated patch management that applies security updates within days rather than months
• Dependency scanning tools that identify vulnerable libraries and components in your ecommerce stack
• Regular web application penetration testing—at minimum annually, and after any major platform changes
• Least-privilege access to admin panels, limiting who can make configuration changes
• WAF rules specifically tuned for retail traffic patterns, protecting cart, checkout, and login endpoints from common attack techniques

Social engineering

Social engineering uses tactics like spear phishing (targeted phishing attacks) and whaling (phishing aimed at top executives) to trick someone in a company into revealing sensitive information or granting network access. In 2024, 60% of all breaches involved a human element—primarily stolen credentials obtained through social engineering—though this share has declined slightly over the last few years as other attack vectors have grown.

While most people are familiar with email phishing, that’s only one type of social engineering. Other attacks can look like:

• An attacker calling retail locations posing as IT support, persuading employees to install “remote assistance” software that grants full system access
• Fraudsters impersonating card processors, claiming they need to verify account details to prevent service interruptions
• Fake vendor representatives initiating onboarding processes designed to harvest credentials or install malware
• “Whaling” attacks targeting executives and owners directly, using detailed research to craft convincing impersonations

The outcomes of successful social engineering are diverse and damaging: bypassed MFA through SIM swapping or social pressure, fraudulent refunds processed by manipulated customer service staff, and malicious configuration changes to ecommerce and POS systems.

Defending against social engineering requires process-based controls:

• Strict verification workflows requiring call-backs to known phone numbers before processing any sensitive request
• Dual approval requirements for high-risk actions like bank account changes, large refunds, or customer data exports
• Least-privilege access that limits what any single compromised account can do
• Security awareness training integrated into onboarding—not just annual compliance checkboxes

Supply chain vulnerabilities

Third-party software, cloud platforms, and service providers now represent an enormous share of retail cyber risk. Thirty percent of all breaches in 2024 involved a third-party compromise—nearly double the rate from 2023.

Retailers are exposed through every external integration that touches customer or payment data: 

• Payment processors
• Ecommerce platform providers
• Marketing automation tools
• Loyalty program platforms
• Analytics services
• Cloud data warehouses 

A vulnerability or breach at any of these vendors can cascade into your environment, even if you have robust security measures in place.

Mitigating supply chain risk requires ongoing vigilance:

• Vendor risk assessments before onboarding any new service that will access customer or payment data
• Data minimization that limits what information you share with third parties to only what they genuinely need
• Strong contract language requiring vendors to maintain specific security standards and notify you promptly of any incidents
• Regular access reviews that verify which vendors still need access and revoke permissions for those that don't

Recent retail data breaches: Learning from real-world examples

These real-life incidents reveal how theoretical threats translate into operational crises—and what we can all learn from other retailers’ painful experiences. Studying real breaches helps prioritize which controls matter most and exposes the common patterns that lead to compromise.

Forever 21

Clothing and accessory retailer Forever 21 experienced a data breach between January and March 2023, affecting more than half a million past and current employees.

A third party gained unauthorized access to sensitive information including names, dates of birth, Social Security numbers (SSNs), bank account numbers, and Forever 21 health plan details. 

The company assured affected people that the stolen data was erased after the breach, which was believed to be a ransomware attack. Forever 21 also offered the victims one year of free fraud and identity theft protection. 

For retailers, the Forever 21 incident highlights critical lessons:

• Segment HR and payroll systems from customer-facing and POS infrastructure, limiting the range of damage from any single compromise.
• Implement strict logging and anomaly detection that can identify unauthorized access within days rather than months.
• Reduce detection and response windows through continuous monitoring rather than periodic security reviews.

Neiman Marcus

Luxury department store Neiman Marcus reported a data breach in May 2024. The breach—part of a larger incident involving cloud storage company Snowflake—exposed customer names, contact information, birthdays, and gift card numbers. Payment card PINs were reportedly not compromised.

Attackers exploited weak authentication on Snowflake customer accounts, accessing vast quantities of data stored in the cloud service. Litigation records from the resulting multidistrict lawsuit document a $3.5 million settlement tied to the incident.

A hacker named Sp1d3r claimed to have demanded ransom from the retailer, which the latter refused. The hacker allegedly sold the database for $150,000, asserting it contained additional information such as partial Social Security numbers.

Have I Been Pwned founder Troy Hunt analyzed the data, revealing that more than 31 million customers’ email addresses were compromised in this hack.

For retailers, the Neiman Marcus case reinforces the growing importance of third-party risk management:

• Avoid "set it and forget it" cloud configurations. Any platform storing customer data requires ongoing security attention, not just initial setup.
• Implement IP allowlists that restrict which network addresses can access cloud dashboards and APIs.
• Require strong MFA on all cloud platform accounts—not just your primary ecommerce system.
• Enforce role-based access that limits which employees can view or export customer data.
• Conduct regular access reviews to verify that only current, authorized personnel retain access to sensitive customer data.

The Neiman Marcus incident demonstrates that third-party platform breaches can expose your customers just as thoroughly as a direct attack on your own infrastructure. Every vendor that touches customer data extends your attack surface—and your responsibility.

Neiman Marcus experienced several data breaches over the past decade and a half, including in 2013, 2015, and 2020.

How to protect your retail business: Key strategies and solutions 

Small businesses don’t need Fortune 500-level budgets to build meaningful defenses against cyberthreats. What they need is a layered security baseline that combines technology, people, and process—prioritized by the threats most likely to affect retail environments.

Think of security as a roadmap: Start with technical controls that close the easiest gaps, lock in policies and training that address human factors, ensure compliance with payment and data protection rules, and then leverage unified commerce architecture to reduce complexity across your entire operation.

Implement technical security measures

Start by hardening your core tech stack: 

• Ecommerce platform
• POS systems
• Payment processing
• Cloud accounts

These are the systems attackers target most aggressively, and they’re where foundational controls deliver the greatest protection.

The financial case for technical investment is clear: organizations that extensively deployed security AI and automation across prevention workflows saved an average of $2.2 million per breach compared with those that didn’t, according to IBM.

Essential security solutions for retailers include:

• Enabling MFA everywhere: Ecommerce admin panels, email accounts, payroll systems, banking portals, and cloud dashboards should all require a second authentication factor. Hardware security keys offer the strongest protection, but authenticator apps significantly outperform SMS codes.
• Deploying a web application firewall and content delivery network: WAFs filter malicious traffic before it reaches your site, while CDNs provide basic DDoS protection while also improving the experience of your actual users.
• Enabling security AI and behavior analytics where available: Modern ecommerce platforms increasingly offer unusual login detection, fraud scoring on orders, and automated alerts for detecting ecommerce fraud and suspicious patterns. Turn these features on.
• Maintaining regular, tested backups: Back up both your store configuration and transaction data, store copies in multiple locations (including immutable cloud storage), and test recovery procedures at least quarterly.
• Implementing endpoint detection and response on back-office machines: EDR software monitors for malware and suspicious activity on the computers where employees access sensitive systems.
• Segmenting IoT devices from critical systems: Smart displays, inventory trackers, and security cameras should operate on isolated network segments that can't reach POS or payment infrastructure.
• Automating patching for all software: Security updates should be applied as soon as possible after release, not left until someone remembers to check manually.

Establish strong internal policies and employee training

Technology fails fast when employees don't understand how attackers actually operate. Human error remains central to many breaches, which means policy and training directly reduce your cybersecurity risk.

Translate the threat landscape into concrete policy requirements, such as:

• Requiring out-of-band verification for high-risk requests: Any request to change bank accounts, process refunds above a threshold, or export customer data should require verification via a phone call to a known number, not a reply to the email making the request.
• Documenting password and MFA policies realistic for retail environments: If employees share devices, implement individual logins tied to unique PINs. If front-of-house staff need quick access, balance security with usability through session timeouts rather than complex password requirements.
• Building micro-training into onboarding and seasonal peaks: Short, focused training modules—5 to 10 minutes covering specific attack types—integrate better into retail workflows than annual hourlong compliance sessions. Include real incidents like the Forever 21 and Neiman Marcus breaches to make threats concrete.
• Creating onboarding and offboarding checklists to reduce insider threats: New employees should receive only the minimum access they need, while departing employees should lose access immediately, not days or weeks later.
• Running periodic phishing simulations: Third-party services can send realistic test phishing emails to your staff, identifying who needs additional training before real attackers find the same vulnerabilities.

Ensure regulatory compliance (PCI DSS, GDPR)

Compliance isn't the whole of security, but the Payment Card Industry Data Security Standard (PCI DSS) and data protection laws define a minimum standard that retailers can’t afford to ignore. Failing to meet these standards exposes you to regulatory penalties, increased liability in the event of a breach, and potential loss of your payment processing capabilities.

PCI DSS fundamentals for retailers

The Payment Card Industry Data Security Standard applies to every business that processes, stores, or transmits card data. For most merchants, the goal is scope reduction: minimize the systems that touch card data, so fewer systems require the full weight of PCI compliance.

• Use tokenization to replace actual card numbers with tokens that have no value if stolen.
• Partner with PCI-compliant payment processors that handle card data in their environment, not yours,
• Never store card data on local systems unless absolutely necessary—and if it is, encrypt it rigorously.
• Understand PCI DSS 4.0 requirements, which introduced new controls around authentication, encryption, and security testing that took effect in 2024.

Data protection laws affecting US retailers

Even domestic retailers may face obligations under the General Data Protection Regulation (GDPR) if they sell to customers in the European Union, and state privacy laws (particularly California's CCPA/CPRA) impose requirements around disclosure, consent, and data subject rights. Collecting customer emails, addresses, and purchase histories triggers these regulations.

A practical compliance checklist includes:

• Documenting what customer data you collect, where it’s stored, and how long you retain it
• Implementing encryption for sensitive data both at rest and in transit
• Establishing data-retention limits—don’t keep customer information longer than you need it.
• Creating a breach response plan that satisfies notification requirements (typically 72 hours for GDPR; varies by state for US laws)
• Training staff on how to handle data subject access requests

Leverage unified commerce for enhanced security

Consolidating your retail stack into a unified commerce platform like Shopify doesn't just improve operations—it can fundamentally strengthen your security posture. Fewer integrations means fewer attack vectors. Centralized data means less shadow data. Unified access control means clearer visibility into who can reach what.

According to IBM, 35% of breaches involve “shadow data”—information stored in unmanaged or unknown locations—and these breaches cost 16% more on average than those involving properly managed data. Additionally, 40% of breaches involved data spread across multiple environments, complicating both protection and response.

Retailers commonly accumulate duplicate customer and order data across disconnected systems. Each copy represents both a potential target and a potential blind spot. Unified commerce architecture reduces the risks by:

• Concentrating data in fewer systems that attackers must target and defenders can monitor
• Eliminating shadow data that exists outside official security controls
• Enabling consistent access control across all channels rather than managing permissions in multiple disconnected systems

Take these practical steps toward unified commerce security:

1. Inventory every system that stores customer or payment-related data, including spreadsheets and cloud drives that might not seem like “real” databases.
2. Consolidate where possible, designating a single platform as the source of truth for customer records.
3. Decommission unused integrations—every connector you no longer need is an attack surface you no longer have to defend.
4. Enforce role-based access consistently across all channels, making sure staff permissions in-store match their permissions online.