Overcoming Retail Cybersecurity Threats

December 7th, 2022



Many retail stores in Chico that find themselves going up against eCommerce giants are becoming more and more competitive by expanding their supply chains. To do this, they also depend on the technology from third parties which can be detrimental at times when dealing with sensitive customer information.

Without the right security measures in place, these retailers are increasing their risk of a data breach. To avoid this, proven mitigation strategies are needed, and today we will talk about some of those and how to overcome retail cybersecurity threats.

Refund Fraud

This is one of the major threats for retail stores back in 2017. Basically, the criminal creates a fake receipt and then goes to the retailer in Chico for a refund with that receipt for something that was never actually purchased. They also purchase an item online, say it never arrived, and then request a refund. 

Another way they commit refund fraud is by purchasing an item using a stolen credit card and then they request a refund that will be processed on a different credit card.

The Dark Web is one of the places that criminals go to generate these fake receipts. For less than $20, you can purchase forged receipts that can be used in these refund scams. To stop this kind of digital fraud from happening, you need to train employees on how to spot suspicious customers. Many of these scams are happening now through phone support, so the call representatives need to be aware of what to look out for.

IoT Vulnerabilities

The internet of things (IoT) is being used more and more in retail locations when it comes to merchandise tracking, equipment maintenance, and foot traffic analysis. However, with so many connected devices, there is more risk for cybercriminals. 

With IoT, everything needs to be kept up to date with all software patches. Retailers also need to weigh the pros and cons before using this kind of connected device usage. 

Gift Card Hacking

Another cybersecurity threat facing retailers is gift card hacking. Back in 2015, a significant vulnerability was found in many gift card systems that allowed cybercriminals to steal the funds out of the balances of unsuspecting consumers. 

First, they would collect the unloaded gift cards from the store and then learn and identify the pattern in the identification numbers on the gift cards. They then use a website to check the balance and force number combinations until something of value appears. They then use that card to make a purchase online.

It is important for retailers to stay ahead of issues like this and learn how to identify risks before they become even more complex and harder to handle.

What kind of cybersecurity do you have in place for your business? If you have any questions on the level of security you have or you want to learn more about the security solutions that are available to you to better protect your business, then contact your local security company in Chico, CA today. 

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D. Weseman, Butte County Mosquito and Vector Control District

Crime Free Living updated our old video system with a new 16 Channel HD Alibi Video Security System. The old system had been added onto by different installers which resulted in a cabling mess. There were cables that worked and cables that went nowhere. It was a mess. Tim sorted it all out and installed cameras that are very clear. He also installed a monitor for our cashiers to watch hidden areas, a monitor to watch the entry door, and a monitor that allows employees to watch the outside parking and gas pump area. All work was done on time and very professional! Will always recommend Tim and Crime Free Living.

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Steve D., Down Range Indoor Training Center

images Certifications & Training

With 16 years of experience in law enforcement, Tim Truby, CEO, is fully certified in video surveillance and training.

  • Certified Advanced Crime Prevention Specialist
  • Academy Instructor Certification
  • California POST Certification in Specialized Surveillance Equipment
  • California POST Certification in Basic Crime Prevention
    • Advanced Crime Prevention through Environmental Design
    • Certified Alibi Security Dealer
    • Enhanced Risk and Threat Assessment (FEMA)
    • Incident Command System (100 & 200)
    • Certified Cognitech Video Forensic Investigator
    • Neighborhood Watch Toolkit Trainer
    • Computer Crimes/Investigations
    • Domestic Crisis for Crisis Negotiators
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