As the holidays approach, retailers, e-commerce businesses, and logistics companies are gearing up for an unprecedented surge in customer demand. However, this surge also attracts an unwelcome group: cybercriminals. According to the International Monetary Fund, cyberattacks and data breaches have nearly doubled worldwide since 2020, with the holiday season being particularly appealing for these malicious actors.
A Semperis survey reveals that 86% of organizations experienced ransomware attacks on holidays or weekends. Given that Americans are projected to spend around $294 billion on e-commerce this holiday season—an increase of 9% compared to the rest of the year—it’s clear that cybercriminals are gearing up for their holiday “shopping spree.”
Increasing Threats during the Holiday Season
The rise in online transactions and activity during the holidays creates more opportunities for cyberattacks, especially common threats like phishing and payment fraud. A significant contributing factor is employee error, accountable for nearly three-quarters of data breaches, as indicated in the 2023 Data Breach Investigations Report. With many employees distracted by holiday festivities or taking vacation time, security protocols can slip through the cracks.
Moreover, the influx of seasonal employees, who may lack adequate training on cybersecurity best practices, adds another layer of risk. As businesses scramble to restock shelves and ship orders, their supply chains—often intertwined with various vendors and contractors—become more susceptible to cyber threats.
According to the Retail & Hospitality Information Sharing and Analysis Center (RH-ISAC), companies have reported significant increases in imposter websites, targeted phishing attempts for specific products, and phone-based social engineering tactics. Last holiday season, ransomware accounted for over a quarter of all cyberattacks— a sharp rise from 13% the previous year. Furthermore, phishing attacks, including fraudulent emails and fake billing requests, represented 15% of total cyberattacks.
Strengthening Cybersecurity Measures
So what can businesses do to fortify their cybersecurity during this critical period? Here are effective strategies to help mitigate the risks:
1. Employee Training and Awareness: It is essential that all team members, including seasonal workers, undergo comprehensive cybersecurity training. This training should aim to familiarize staff with company policies and procedures, focusing on how to recognize and report phishing attempts, protect sensitive information, and manage passwords securely.
2. Implement Multi-Factor Authentication (MFA): MFA can significantly reduce the effectiveness of both automated attacks and phishing attempts. By requiring users to provide multiple forms of identification, businesses can establish an added layer of security for critical systems and financial transactions.
3. Regular Software Updates: Staying current with software updates and security patches is vital in closing potential vulnerabilities. When technology evolves rapidly, cybercriminals often exploit outdated systems. Regular updates can help mitigate these risks.
4. Third-Party Risk Management: Given that many e-commerce operations partner with various vendors, establishing a robust third-party risk management program is crucial. Organizations should ensure that their vendors follow strong cybersecurity practices.
5. Supply Chain Security: Like third-party vendors, the entire supply chain should be assessed for security vulnerabilities. Creating secure communication channels and developing an overarching incident response plan can prepare organizations for potential threats from suppliers.
6. Monitoring and Assessment: Continuously monitoring the security posture of all business partners and vendors can help detect potential threats early. Regular assessments can reveal weak points in a company’s defenses, allowing leaders to address them before they turn into costly breaches.
Conclusion
While the holiday season can be the most lucrative time of the year for B2B leaders, the same period also heightens the potential for cyber threats. By identifying prevalent threats and implementing robust security measures, organizations can protect their operations from cyberattacks and ensure that their holiday season remains joyous and secure. In a landscape where data breaches lurk around the corner, vigilance is crucial.
