Future-Proofing Retail Security: Preparing for Tomorrow's Cyberthreats

• The cybersecurity threat landscape is rapidly evolving, with AI-powered attacks, Internet of Things (IoT) vulnerabilities, ransomware attacks, and quantum computing threats creating unprecedented challenges for retail organizations.
• Traditional cybersecurity strategies are becoming obsolete as sophisticated threat actors leverage machine learning, deepfake technology, and automated attack tools to bypass conventional defenses.
• Emerging technologies such as behavioral analytics, AI-driven threat detection, and Zero Trust security applied to edge computing, offer powerful new defenses — but they demand significant investment and organizational change.
• Building adaptive security organizations and cyber resilience requires continuous learning, talent development, and integration of security practices into every aspect of business operations.
• Industry collaboration through threat intelligence sharing and public-private partnerships is becoming essential for defending against nation-state malicious actors and organized cybercrime syndicates.

In the first two parts of this series, we explored the critical needs to assume breach for internal systems and extend security thinking across supply chain networks. But as retailers implement these foundational strategies, a new reality is emerging: The threat landscape itself is evolving at a pace that outstrips traditional defense mechanisms and security measures.

The numbers tell a stark story. In 2024, the number of global web application and API cyberattacks surged to 311 billion — a staggering 33% year-over-year increase. Commerce bore the brunt of this assault, facing more than 230 billion attacks, which represents more than 40% of all global cyber incidents. To put this in perspective, commerce faced nearly triple the attacks of high technology, the next most targeted sector.

Consider this emerging scenario: A retail organization receives what appears to be a legitimate video call from their payment processor's security team, warning of an urgent vulnerability requiring immediate system access. The voice, face, and even speaking patterns are perfectly authentic — because they're generated by artificial intelligence (AI) that has analyzed hours of the real executive's public appearances.

Within minutes of granting access, automated attack tools are mapping network architecture, identifying high-value targets, and establishing persistent backdoors across multiple systems. By the time human analysts detect the intrusion, the attackers have already exfiltrated customer data and deployed ransomware or malware across critical infrastructure.

This isn't science fiction — it's the emerging reality of AI-powered social engineering combined with automated attack platforms that can accomplish in minutes the kind of large-scale data breaches that previously took human operators weeks to achieve.

The sophistication of social engineering attacks is reaching unprecedented levels. Modern deepfake technology can now generate convincing audio and video content in real time, enabling attackers to impersonate executives, IT personnel, or trusted partners during live conversations. 

These AI-enhanced attacks bypass traditional security awareness training because they exploit fundamental human psychology rather than technical knowledge gaps. A single convincing deepfake call or an AI-generated phishing email to a store manager could result in fraudulent refunds, unauthorized system access, or the compromise of point-of-sale terminals.

More concerning is how threat actors now use AI tools to scan retail APIs, pinpointing unique vulnerabilities and creating custom attacks designed specifically for each target's weaknesses. This automated attack scaling significantly reduces the time and effort needed to identify and exploit security gaps across retail systems.

Bot attacks represent one of the fastest-growing threat vectors, with AI-driven bot fraud spiking by 137% in January 2024 alone. These sophisticated bots serve as enablers for broader attack campaigns, engaging in inventory hoarding, price scraping, account takeover, and payment fraud.

Unlike traditional bots that follow predictable patterns, AI-powered bots can mimic human behavior, making them extremely difficult to detect and block. During peak shopping periods like Black Friday, these bots can overwhelm systems while simultaneously stealing inventory from legitimate customers and gathering competitive intelligence.

The retail sector's embrace of IoT devices — from smart shelving systems to connected payment terminals — has created an exponentially larger attack surface. Each connected device represents a potential entry point, and many retail IoT implementations prioritize functionality over security.

Edge computing, while offering performance benefits, distributes sensitive data processing across numerous locations where physical security may be limited. A compromised edge device in a remote store location can provide attackers with a foothold that's both difficult to detect and challenging to remediate.

While still emerging, quantum computing represents a fundamental threat to current encryption standards. Retailers who rely on today's cryptographic protocols for protecting customer data face a future in which these defenses may become obsolete overnight.

The transition to quantum-resistant encryption will require massive infrastructure changes. Intelligence agencies and sophisticated cybercriminal organizations are already collecting encrypted data with the expectation of future decryption capabilities.

Just as attackers are leveraging AI, defensive technologies are evolving to provide unprecedented visibility into subtle attack patterns. Advanced behavioral analytics can identify anomalous activities that would be impossible for human analysts to detect across the vast data streams of modern retail operations.

These systems learn normal patterns for individual users, devices, and network segments, then flag deviations that may indicate compromise. Unlike signature-based detection systems that rely on known attack patterns, behavioral analytics can identify novel attack techniques and zero-day exploits.

The speed of modern attacks demands automated response capabilities that can react faster than human operators. Security orchestration platforms can automatically isolate compromised systems, block malicious traffic, and initiate recovery procedures within seconds of threat detection.

These automated responses are particularly critical for retailers that operate across multiple time zones, where human security teams may not be immediately available to respond to incidents. However, automation must be carefully balanced with human oversight to avoid disrupting legitimate business operations.

Static security assessments are becoming obsolete in the face of rapidly evolving threats. Organizations need continuous monitoring and assessment capabilities that provide real-time visibility into security posture across all systems and locations.

This requires integration of security metrics into business intelligence platforms, enabling executive teams to make informed decisions about risk tolerance and security investments. Security can no longer be treated as a purely technical function — it must be integrated into strategic business planning.

The cybersecurity skills shortage is becoming more acute as threats become more sophisticated. Retailers must invest in developing internal capabilities rather than relying solely on external consultants and vendors.

This includes creating career development paths for security professionals, providing ongoing training in emerging technologies, and fostering a culture in which security is viewed as an enabler rather than an impediment to business objectives.

Individual organizations cannot defend against sophisticated threat actors who operate at global scale. Industry collaboration through threat intelligence sharing consortiums is becoming essential for early threat detection and coordinated response.

Retailers must participate in industry-specific information sharing organizations while also contributing to broader cybersecurity intelligence efforts. This includes sharing indicators of compromise, attack techniques, and defensive best practices.

Government agencies are recognizing that cybersecurity is a shared responsibility requiring unprecedented cooperation between public and private sectors. Retailers must engage with law enforcement and national security agencies to both receive threat intelligence and contribute to broader defensive efforts.

These partnerships can provide access to classified threat intelligence and specialized technical assistance during major incidents but also create new obligations regarding information sharing and compliance.

Modern retailers need security solutions that can evolve with the threat landscape while maintaining operational efficiency. Akamai's comprehensive security portfolio spans from cloud and edge protection to network security and threat intelligence, providing adaptive defense capabilities that use machine learning, behavioral analytics, and global threat intelligence to protect against both known and emerging threats.

This integrated approach enables retailers to defend against sophisticated attack vectors across their entire technology stack — from protecting customer-facing applications and APIs to securing internal networks and IoT devices with unified visibility and coordinated response capabilities.

For retailers that are managing extensive IoT environments with connected devices across multiple locations, Akamai Guardicore Segmentation offers microsegmentation capabilities that can isolate and protect IoT and operational technology (OT) systems. This is particularly critical as retailers deploy more smart shelving, connected payment terminals, and automated inventory systems that could serve as entry points for attackers seeking to move laterally through networks.

Akamai Hunt provides advanced threat hunting capabilities that combine human expertise with machine learning to identify sophisticated attacks that evade traditional detection systems. By continuously analyzing network traffic and system behaviors, Hunt enables security teams to proactively identify and respond to emerging threats before they cause significant damage.

To address the growing bot threat, Akamai Bot Manager uses behavioral analysis to distinguish legitimate customers from malicious bots to protect against inventory hoarding, scraping, and automated fraud while ensuring that genuine customers can complete their transactions seamlessly.

• Conduct comprehensive assessment of current AI and automation capabilities within your security program
• Implement advanced endpoint detection and response solutions with behavioral analytics
• Begin pilot programs for automated incident response in low-risk scenarios
• Establish relationships with threat intelligence sharing organizations
• Start planning for quantum-safe cryptography transitions

• Deploy AI-enhanced security monitoring across all critical systems
• Implement continuous security posture assessment tools
• Develop comprehensive playbooks for emerging threat scenarios
• Create cross-functional teams that combine security, business, and technology expertise

• Build internal capabilities for threat hunting and advanced incident response
• Implement organization-wide security culture transformation programs
• Develop proprietary threat intelligence capabilities
• Create resilient security architectures designed for quantum computing threats

As cyberthreats become more sophisticated and pervasive, superior cybersecurity capabilities will increasingly become a competitive differentiator. Retailers with robust, adaptive security programs will be able to maintain customer trust, operate more efficiently by avoiding costly security incidents, and attract talent who value working for security-conscious organizations.

The investment required to build these capabilities is substantial, but the cost of falling behind is existential.

The cybersecurity landscape is evolving at an unprecedented pace, driven by AI, quantum computing, and increasingly sophisticated threat actors. Retailers who view cybersecurity as a static technical function will find themselves defenseless against adversaries who are already preparing for tomorrow's battles.

Building future-ready cybersecurity requires organizational transformation, industry collaboration, and a commitment to continuous adaptation. The retailers who thrive will be those who embrace cybersecurity as a core business capability rather than a necessary evil.

The window for building these capabilities is narrowing. The threat actors of tomorrow are investing heavily in next-generation attack capabilities today. The question facing every retail CISO or security leader is simple: Will your organization be prepared for tomorrow's threats, or will you be fighting yesterday's battles with obsolete defenses?

This concludes our three-part series on retail cybersecurity resilience. We've explored the foundational need to assume breach, the criticality of supply chain security, and the emerging threats that will define tomorrow's cyber landscape.

If you missed either of the previous posts in this series, you can read The Reality of Modern Cyberattacks: Lessons from Recent Retail Breaches and Understand the Attack Surface: Retail Supply Chain Cybersecurity Risks now.