Individuals planning to buy the bulk of their Christmas presents online this Monday will be relying, perhaps even unthinkingly, on retailers' cybersecurity and anti-malware systems to protect them. But whilst consumers may feel physically safer buying goods from their living room, they are actually more at risk of fraud than if they were joining the throngs in stores on Black Friday. Online shoppers need to be more vigilant than ever.
To help stay protected against increasingly sophisticated cyber fraudsters consumers should:
• Make sure that all malware and security software on desktop, mobile and tablet devices are up-to-date
• Don’t share personal or financial information over an unsecured Wi-Fi network - this is a common issue in mobile shopping where free unsecure Wi-Fi is offered
• Look for the closed padlock on the web browser before entering credit card or personal information – if the lock in the search bar or page doesn’t appear then the transaction may not be secure
• Save records of online transactions to create a paper trail
• Frequently check bank statements and transactions to immediately report any discrepancies
Advice for retailers
“Given the pervasive nature of cyber-attacks on UK companies, retailers will be on high alert over this long weekend of sales for attacks or data breaches on their online store or mobile purchasing app. Whilst the immediate concern will be against anything that prevents bumper Christmas sales, they will be fully aware of the mid to long term reputational damage any attack could cause.
“In light of the data breach at Carphone Warehouse and recent attack on TalkTalk, the value of cybersecurity is well known, and CEOs and FDs will be paying ever increasing attention to cyber threats this Monday. With the sprawling supply chains of large companies, scrutiny of third party contractors’ internal cyber security systems will increase too. The fact is, whilst retailers can make every effort to protect their own online systems, they cannot account third party suppliers’ security and this way can be attacked via the back door. A critical element of cover in cyber policies is that the policy pays out even if a vendor causes the issue. Most forward thinking companies no longer view cyber insurance as merely optional, but rather a critical weapon in their cyber risk management arsenal. It will interesting to see how this year’s Cyber Monday plays out, but data breaches are highly likely to take place and businesses will need to ensure they are adequately covered in this event.”
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