As a growing number of consumers choose to do their shopping from the convenience of their smartphones and home computers, a number of industries are increasing their digital presence. The home furnishings sector is no exception; in recent years, e-commerce has comprised a dramatically increasing portion of furniture sales. From 2009 to 2015, furniture businesses saw a 168 percent increase in online sales, with e-commerce activity making up 15 percent of all furniture industry sales in 2015. During the same period, brick-and-mortar business increased by just 13.8 percent.
While the rapidly expanding world of e-commerce is providing new growth and marketing opportunities for furniture business leaders, it is also presenting a number of new risks. When interacting with customers in the digital realm, companies must contend with a myriad of threats to the efficiency and overall stability of their operations. The threat of malicious activity perpetrated by cybercriminals should be chief among the concerns of both newly digital and established e-commerce companies. When paired with a lack of due diligence regarding cybersecurity, a successful cyberattack results not only in financial losses, but also significant damage to a brand’s image and consumer confidence.
These are a few tips that retail leaders should be aware of as they navigate the increasingly digital business landscape:
The rate of cybercrime is climbing.
It is important for leaders in the furniture industry, as well as professionals throughout every sector, to understand current trends in cybercrime. As more industries choose to interact with customers via a broader array of digital touchpoints, they provide new motivation for criminals to attempt to compromise their online operations. Even as cybersecurity measures become more advanced, instances of cybercrime in the retail sector are increasing in their scope, frequency, and severity. In 2015, over 500 cases of cybercrime impacted the retail sector, causing 164 instances of large-scale data loss. In 2016, the BDO Retail RiskFactor Report identified data breaches and similar cyber threats as the most pressing challenges currently facing the retail sector, noting that each retailer studied experienced an average of eight cyberattacks per year. More recently, the WannaCry ransomware attack demonstrated the potentially devastating impact of a well-orchestrated global cyberattack, bringing down major companies and public utilities around the world while highlighting the importance of concentrated cybersecurity efforts.
Ransomware is an increasingly prevalent digital threat.
As cryptocurrencies such as Bitcoin become a more commonplace method of carrying out secure, anonymous digital transactions, cybercriminals are seizing the opportunity to extort these untraceable funds from unsuspecting victims. Many tech experts cite Bitcoin as a driving force behind the prevalence of ransomware attacks, in which criminals compromise a firm or individual’s data and hold it hostage for ransom. The attackers threaten to leak or destroy their victims’ data unless they receive a lofty amount of Bitcoin, forcing individuals to pay up or risk losing highly sensitive information. Ransomware attacks frequently infect networks via successful phishing attempts, and for this reason, they can be difficult to detect. Oftentimes, a company or individual does not realize that they are the target of an attack until they are locked out of their systems. To prevent instances such as these, preemptive cybersecurity measures are absolutely necessary.
A diligent backup strategy is your best defense.
In the digital business landscape, data is a key component of business success. A company’s informational resources not only drive its day-to-day operations but provide the tools and insights to spur long-term innovation. Naturally, this valuable asset is most often the target of a cybercriminal’s schemes.
Organizations that take measures to copy, save, and protect their data lessen their risk of suffering operational interruptions or financial losses in the case of a cyberattack. A professional backup service can be the most effective solution to a company’s data redundancy needs, as these firms are equipped to provide off-site, consistently monitored storage services. The automated processes facilitated by a dedicated backup firm can remove some of the threats associated with alternative storage methods, such as cloud storage or onsite backups. While a firm may find it convenient to back up their data using onsite external storage, such methods run the risk of damage or theft and may violate cybersecurity standards governing the management of sensitive data. In addition, a company’s own external backups will rarely be sufficient to restore the entirety of their data should a breach occur.
Consider all potential vulnerabilities.
Even if a furniture retailer does not currently operate an e-commerce platform, it likely uses a number of digital tools to serve customers and operate efficiently. Business leaders must consider every digital access point when assessing their operations for potential vulnerabilities, ensuring that each digital touchpoint is adequately defended by anti-virus and anti-malware applications. For example, point of sale (POS) systems have recently become popular targets for cyberattacks, as they are integral to a firm’s operations and contain a great deal of sensitive contact information and financial data. Moreover, a successful attack on a POS system can grant a hacker access to additional devices throughout an organization’s digital network.
Education is key.
While employees are the driving force behind a business’ success, they can easily become an organization’s greatest liability if not properly educated on cybersecurity threats. In addition to ensuring that only necessary and qualified individuals have access to a firm’s most sensitive data, business leaders should also ensure that their employees are aware of the most common forms of cybercrime and proper strategies to avoid them. They should know how to identify potential phishing attacks and understand the importance of safety filters on e-mail platforms and web browsers. Additionally, businesses should encourage both employees and customers alike to create strong passwords, which can provide an extra line of defense against cybercrime.