Saks' Scandal is a Lesson For All Retailers - SuiteRetail
In recent years, we've seen countless headlines about data and security breaches in retail stores, and some of us may have even fallen victim to them. The most recent data breach at department store chains Saks Fifth Avenue, Saks on Fifth, and Lord & Taylor has released about 125,000 customer records for sale on the dark web.
Most of this boils down to sloppy (legacy) point-of-sale solutions and the insistence of some retailers to store information on their own self-managed cloud servers or even their own servers.
Legacy POS systems run risks to business by allowing company and customer information to be stored on a physical server rather than a world-class managed cloud-based system that has "unbreakable" security. This makes it easier for hackers to get access to company or customer information such as telephone numbers, credit card information and email addresses.
Another issue with legacy POS systems is that the software typically will not integrate smoothly with other retail management tools such as an inventory management system or a CRM. By having all of these business functions operating on separate silos, retailers are allowing more access points for hackers to glean data.
According to Dmitry Chorine, Gemini Advisory's Co-founder and Chief Technology Officer, the breach began about a year ago and there is evidence that the hacking group directly targeted the point of sale system to gather information. He has also stated that these stores might not have adopted the updated and more secure credit card payment systems that have been installed in many other retail stores.
It is without question that these stores will suffer from this breach, both from a business recovery standpoint and losing customer loyalty.
All this is avoidable and retailers know it. The question is, are they willing to make the investment?
It is important for retailers today, especially high-end and big-box retailers, to make sure their technology is up-to-date and provides the security needed for their sales and transactions. When upgrading to a cloud-based point of sale system and back-office solution, retailers are not only implementing better technology to help them run their business, but they are taking steps to keep customer data safe and secure.
If you are a larger retailer and are interested in protecting your customers you can contact our sales team today.