Now hackers and online fraudsters steal your credentials

Cybercrime is becoming increasingly targeted and sophisticated, with a clear objective: stealing login credentials. According to the Global Retail Report 2025 by KnowBe4, this is one of the main threats to the retail sector. Credential theft, often carried out through phishing attacks, has surpassed payment card data theft as the most common threat. In 2023, 38% of all compromised data in the retail sector was linked to credential theft, a significant increase from the 25% of stolen data related to payment cards, which was the main threat in the past. This evolution in hacker tactics is particularly concerning. Credential theft allows hackers to gain immediate access to personal accounts, easily bypassing security measures such as passwords and two-factor authentication. The rise in this type of attack has been accompanied by a significant increase in the frequency of attacks in the retail sector, which rose by 56% in 2023 compared to the previous year. The retail sector is now among the top five most targeted globally. In 2024, the situation worsened further, with the average cost of a data breach in the retail sector reaching $3.48 million, an 18% increase from the $2.96 million in 2023. This cost increase is also due to indirect costs related to the attacks, such as reputational damage, customer loss, costs associated with securing compromised systems, loss of business opportunities during downtime, and expenses for consumer protection, such as credit monitoring services. These “hidden” costs have risen by nearly 11% compared to 2023, and sometimes only manifest years after the incident, such as in the infamous Home Depot hack in 2014, where cybercriminals exploited stolen credentials to exfiltrate sensitive information.

Geographically, cyberattacks in North America represented the largest share, with 56% of global attacks on the retail sector, followed by Latin America with 32% and Europe with a significantly lower percentage of just 11%. Additionally, in the United States, the retail sector accounted for 45% of global ransomware attacks, despite the retail sector representing only 28% of the global market. This shows how vulnerable and targeted the retail sector is by cybercriminals, especially in the context of growing sophistication in attack techniques. The increased vulnerability is also due to the nature of the retail sector itself, which collects and stores large amounts of personally identifiable data such as names, addresses, phone numbers, and purchase-related information. More than 62% of purchases are made via credit or debit card, and when a consumer makes a purchase, they entrust this sensitive information to the retailer. In the event of an attack, criminals not only steal this information but also purchase tracking data, alternate shipping addresses, and even address changes. This makes the retail sector an irresistible target for cybercriminals. Credential theft is now one of the main threats, but attacks are becoming increasingly sophisticated, with the adoption of artificial intelligence-based tools that have made attacks easier to launch and harder to stop. Not only do experienced criminals use these tools, but even new attackers with limited skills can leverage these advanced technologies to carry out more targeted and effective attacks.

In response to this growing threat, KnowBe4 emphasizes the importance of reducing the so-called "human risk". Many cyberattacks, in fact, are the result of human error, such as falling victim to a phishing attack. Research has shown that employee training is one of the most effective measures to reduce the risk of data breaches. Data shows that the likelihood of an employee falling victim to phishing in a large retail company has decreased from 42.4% to 5.2% after a year of continuous training. Similarly, small and medium-sized businesses have seen a similar reduction, with rates dropping to 4.7% and 4.5%, respectively. These figures highlight the importance of ongoing training and security awareness. While adopting advanced technologies such as biometrics, encryption, and multi-factor authentication can help strengthen data protection, it is crucial that employees are able to recognize threats like phishing and know how to respond in case of an attempted breach. Overall, data security is becoming a crucial element for long-term success in the retail sector. Protecting consumer credentials and training staff will become increasingly necessary measures in the future to counter the rise of cyberattacks. The risk, now that our lives are becoming increasingly digital, along with the platforms where we share our information, can only grow year after year.