Like many U.S. industries, retail’s business model has fundamentally changed with the advent of the internet and mobile technologies, which has allowed the industry to better communicate with the customer, for example. But with this digital expansion has come greater exposure to digital security risks, such as cyberterrorism, hacktivism, and internal digital threats. According to a 2019 data threat study, 62% of U.S. retailers say they have experienced a digital security breach at some point in their history. That’s 8% less than healthcare companies, but a similar rate to U.S. financial services and federal government verticals who reported 62% and 60%, respectively.
U.S. retailers also expressed a significant level of concern over their data security vulnerabilities compared to their global counterparts. 39% of U.S. retailers said they were “very” or “extremely” vulnerable to security threats compared to 34% of global retailers.