The festive season is a whirlwind of excitement, but for UK retailers and their customers, it’s also a time when cyber criminals ramp up their efforts to exploit vulnerabilities. According to the National Cyber Security Centre (NCSC), the UK retail sector saw a 32% spike in cyber attacks during the 2023 Christmas period, with phishing scams and ransomware attacks at the forefront.

Whether you’re snagging Boxing Day deals or running an online store, being aware of these threats is half the battle. Let’s dive into the 5 most common tactics cyber criminals use during the festive season – and how to prevent falling victim to them.

Phishing scams: Too good to be true? It probably is

In December, email inboxes are flooded with promising promotions. But let’s face it: if the deal seems too good to be true, it probably is. Cyber criminals send phishing emails disguised as trusted retailers, hoping customers will click on malicious links or provide sensitive information.

According to Action Fraud, over £15 million was lost to online shopping scams during the 2023 festive season in the UK. Phishing isn’t limited to email – fake texts and social media ads are also wide spread. 

For retailers, cyber criminals know your team is overwhelmed, making them more likely to fall for fake invoices, “urgent” account updates, or even holiday-themed promotions.

These emails often impersonate trusted entities like shipping/delivery companies, payment platforms, or even your own employees. With just one click, a malicious link can compromise sensitive customer data and give hackers access to your internal systems.

How to prevent it:

• • Training & awareness: Provide staff with updated cyber security training that highlights the latest phishing tactics, especially during peak shopping periods.
  • Email protection tools: Use AI-driven email filters to block phishing emails before they reach inboxes.
  • Threat Intelligence: Leverage threat intelligence services to stay informed about current phishing campaigns targeting UK retailers.

Fake websites: Scammers disguised as you

A surge in pop-up websites and ads on platforms like Instagram and Facebook is another hallmark of the season. Fake websites are a growing problem in the UK, with over 12,000 malicious sites reported by the NCSC during the 2022 festive period. These sites impersonate legitimate retailers, luring in unsuspecting customers with fake deals.

Beyond harming your customers, fake websites damage your brand reputation and could even lead to legal liability if customers blame your company for the scam.

Even worse, some fake sites mimic internal portals, targeting your employees for login credentials.

How to prevent it:

• • Monitor for impersonators: Use threat intelligence services to identify and report fraudulent sites pretending to be your business.
  • Secure your website: Regularly update your SSL certificate and encourage customers to shop only through verified links.
  • Customer and staff education: Share tips on how to spot fake sites in your newsletters or social media.

Ransomware: Don’t be held hostage 

Retailers are a prime target for ransomware attacks during peak seasons. Cyber criminals know businesses are busy, desperate to avoid downtime, and more likely to pay substantial ransoms to recover critical systems.

The NCSC reports that in December 2023, ransomware attacks on UK retailers increased by 24%, often leading to supply chain disruptions and delayed orders. For small businesses, the average ransom demand reached £76,000 – a staggering figure for any retailer, let alone those operating on tighter margins.

How to prevent it:

• • Use of a SIEM solution: Monitor systems 24/7 to help detect ransomware attacks early, and respond before significant damage occurs.
  • Regular back-ups: Ensure that all critical data is backed up securely and regularly, with at least one back-up stored offline.
  • Proactive assessments: Regularly conduct a security risk assessment to identify vulnerabilities in your environment.

POS system breaches: Retail’s weak link

Point-of-sale (POS) systems are under increasing attack, with hackers deploying sophisticated malware to steal customer card information during transactions, or even disrupt entire POS networks. According to KPMG’s 2023 Cybersecurity Report, POS breaches in the UK retail sector surged by 35% in Q4 2023, with attackers often targeting small, independent retailers with less robust security measures.

The damage from a POS breach is two-fold: retailers face financial penalties under GDPR for mishandling customer data, and they lose customer trust.

How to prevent it:

• • End-to-end encryption: Ensure your POS system encrypts all payment data from the moment of the transaction.
  • Regular security audits: Conduct security assessments of your POS system to identify potential vulnerabilities.
  • Managed services: Work with a trusted managed security service provider (MSSP) to monitor and secure your POS systems.

Insider threats: A growing concern

The festive season often means temporary staff and longer hours for existing employees, both of which increase the likelihood of insider threats. According to a survey by Cifas, insider-related fraud and data breaches rose by 23% during the 2023 holiday season, with many incidents stemming from untrained or careless employees.

Whether it’s an employee accidently falling for a phishing scam or deliberately leaking data, insider threats can have devastating consequences for your business.

How to prevent it:

• • Segregation of duties: Divide responsibilities between different employees/teams to reduce the risk of fraud, errors, and conflicts of interest – minimising the risk of any individual having complete control over critical processes or systems.
  • Temporary staff training: Provide temporary staff with focused cyber security training to reduce accidental errors.
  • MDIR service: Monitor internal systems for unusual activity with real-time detection tools.

Proactive cyber security: Your best defence

The festive season should be a time to celebrate business success – not scramble to recover from a cyber attack. From phishing scams to ransomware and fake websites, the risks are real, and UK retailers are firmly in hackers’ sights.

With proactive measures like managed detection response, security assessments, and staff training, you can stay one step ahead – not only during peak seasons, but throughout the year. Cyber security isn’t just a technical investment; it’s a commitment to your customers, your business, and your future.

Longwall Security can help protect your business with tailored security solutions and consultancy. Get in touch to find out more.