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9 Ways Online Retailers Can Protect Customer Data Privacy During the Holidays

By Sue Marquette Poremba, Posted November 16, 2015
  • 9 Ways Online Retailers Can Protect Customer Data Privacy During the Holidays-

    Third-Party Security

    Continued expansion of product lines for online retailers frequently means growth in third-party relationships (e.g., additional suppliers, merchants, marketing firms, etc.), according to Tony Buffomante, KPMG cyber consumer markets leader. These relationships may mean sharing technical platforms, data, customer information or other intellectual property. Online retailers should be concerned about information security controls of third-party vendors that store or process customer information on behalf of the online retailer.

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9 Ways Online Retailers Can Protect Customer Data Privacy During the Holidays

By Sue Marquette Poremba, Posted November 16, 2015
  • 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11
  • 9 Ways Online Retailers Can Protect Customer Data Privacy During the Holidays-10

    Third-Party Security

    Continued expansion of product lines for online retailers frequently means growth in third-party relationships (e.g., additional suppliers, merchants, marketing firms, etc.), according to Tony Buffomante, KPMG cyber consumer markets leader. These relationships may mean sharing technical platforms, data, customer information or other intellectual property. Online retailers should be concerned about information security controls of third-party vendors that store or process customer information on behalf of the online retailer.

A study conducted by KPMG last fall found that a growing number of consumers are leery of breaches and the loss of data privacy. As Forbes stated:

More than a quarter (27%) of the 1,400 U.S. consumers surveyed in November by KPMG said they would only shop at a store that previously experienced a cyber attack if they could not find the product elsewhere — with 8% refusing to shop at these stores at all.

Consumers have a reason to be concerned. Last holiday shopping season, IBM revealed that attacks against retailers are growing more sophisticated and targeted, which means that while there may be fewer attacks overall, they are gathering just as much or more data.

As we approach the 2015 holiday shopping season, it is up to retailers to do everything they can to protect their customers' data privacy. It's not an easy task, as Joe Schorr, director of advanced security solutions with Bomgar, stated in an email comment:

"Retail organizations are one of the most attractive targets for data theft due to the massive amounts of credit card information they process. Tools that allow IT departments or even outside vendors to remotely access and fix manned and unmanned systems are imperative in retail, but they're also one of the retail industry's biggest security weaknesses. Hackers are constantly looking to exploit unsecure remote access methods that turn them from outside attackers to privileged insiders and gain access to sensitive data and systems."

In this slideshow, Sue Marquette Poremba has outlined a few issues experts recommend online retailers consider before we hit the busy shopping season to better ensure their security is running smoothly.