The Challenge
The retail industry is booming, with e-commerce sales projected to reach $6.8 trillion by 2028. However, this digital transformation brings increased cybersecurity risks. Retailers face growing threats from data breaches, cloud vulnerabilities, and third-party risks.
Background
In December 2013, during the peak of the holiday shopping season, cybercriminals singled out Target Corporation, a major American retailer with over 2000 physical stores and a massive online presence, resulting in a major data breach.
Attack
- Attackers exploited a vulnerability in Target's supply chain, gaining access through a third-party HVAC vendor.
- Weak passwords and insecure remote access at the vendor allowed attackers to infiltrate Target's network.
- Malware was installed on point-of-sale (POS) terminals.
- 40 million payment cards and 70 million customer records were compromised.
Impact
- Over $200 million in direct costs to Target.
- Estimated total losses around $1 billion.
- Numerous lawsuits and settlements exceeding $134 million.
- Eroded customer trust and decline in sales.
- Resignation of Target's CEO and CIO.