Cyber Threats That Could Impact the Retail Industry This Holiday Season (and What to Do About It)

As the holiday shopping season approaches, retail businesses are bracing for a surge in both online and in-store activity. However, the increased consumer traffic also attracts cybercriminals who exploit vulnerabilities in eCommerce platforms. The Imperva Threat Research team recently emphasized the necessity for retailers to prioritize cybersecurity, particularly in light of an analysis conducted between April and September 2024. This analysis reveals that AI-enhanced threats are significantly heightening risks, with retail sites facing an overwhelming average of 569,884 AI-driven attacks daily.

Among the various threats, business logic abuse has emerged as the predominant form of attack, comprising 30.7% of total incidents. This type of attack exploits the intended functions of applications to generate unauthorized outcomes, such as manipulating promotional codes or abusing return policies for personal gain. Nearly half of all retailers have reported experiencing some degree of business logic abuse, highlighting the need for stringent controls that monitor user activities. Cybercriminals can leverage AI technologies to refine these exploitative strategies; without proper security measures, businesses may incur considerable financial losses and significant reputational damage.

Similarly, Distributed Denial-of-Service (DDoS) attacks represent 30.6% of AI-driven threats and have surged in frequency, with a 61% increase in application-layer DDoS attacks on retail sites noted since last year. These attacks can cripple websites during peak shopping periods, resulting in potential revenue loss and recovery expenses for affected businesses. To counteract this threat, retailers must invest in robust DDoS mitigation strategies that enable them to identify and neutralize attacks effectively before operational disruptions occur.

Bad bot activity, notably from so-called Grinch bots, is a growing concern, accounting for 20.8% of AI-driven attacks. These automated bots, designed to mimic human interactions, can disrupt regular business functions by scraping data, engaging in credential stuffing, and creating fake accounts. Grinch bots specifically target high-demand items, purchasing them en masse to resell at inflated prices. As their sophistication increases, detecting and mitigating these bot attacks becomes more challenging, making it vital for retailers to bolster their monitoring and detection systems.

In addition to these issues, API violations are on the rise, making up 16.1% of AI-driven attacks. Cybercriminals can exploit API vulnerabilities using AI, leading to unauthorized access to sensitive information and causing potential data breaches. Retailers are currently facing an average of 5,570 API attacks each day. Thus, implementing strict access controls and conducting regular security assessments is crucial for maintaining customer trust and preventing financial fraud.

To safeguard against rising cyber threats, retailers are advised to adopt several cybersecurity measures. They should prepare for escalated online traffic by enhancing their infrastructure, using solutions like content delivery networks (CDN) and waiting room systems to manage traffic effectively. Developing a comprehensive bot management strategy is essential to differentiate between legitimate users and malicious traffic. Key tactics include evaluating traffic risks and implementing robust monitoring systems for automation indicators.

Furthermore, to combat business logic abuse, retailers must enhance validation processes for user inputs and utilize anomaly detection to identify unusual activities. Regular audits of business processes can also reveal vulnerabilities that may be exploited by cybercriminals. Investing in advanced DDoS protection solutions is vital for maintaining website accessibility during peak periods by employing machine learning technologies that can detect and mitigate malicious traffic in real time.

Lastly, securing APIs is essential. Retailers should establish a baseline for normal API usage, allowing them to identify anomalies indicative of malicious activities. Implementing rate limits and maintaining an audit trail for user activity can significantly aid in monitoring potential threats.

By thoroughly understanding the landscape of AI-driven cyber threats and implementing robust protective measures, retailers can better safeguard their operations and provide a secure shopping environment for their customers. Vigilance and advancements in cybersecurity technologies will be imperative to keep pace with the evolving tactics employed by cybercriminals, ensuring both retail operations and customer experiences remain protected throughout the holiday season.