While American shoppers say they are very concerned about the safety of their personal information following the massive security breach at Target, many aren’t taking steps to ensure their data is secure. Just 37 percent of surveyed consumers have tried to use cash for purchases rather than pay with plastic, and only 41 percent have checked their credit reports. Even fewer have changed their online passwords at retailers’ websites, requested new credit or debit card numbers, or signed up for a credit monitoring service.
33 percent of terrorism attacks in 2013 affected the retail sector, and 18 percent of attacks took place on the transportation sector. Retail environments, such as public markets, remain vulnerable to attack, as seen in the Kenyan mall shooting.
Merchandise returns in 2013 cost U.S. retailers more than $267 billion in lost sales, and retail fraud and abuse accounted for $9.1 billion to $16.3 billion in the United States, an increase of 2.6 percent from 2012, according to The Retail Equation’s 2013 Consumer Returns in the Retail Industry report.
The Cisco 2014 Annual Security Report reveals that threats designed to take advantage of users’ trust in systems, applications and personal networks have reached startling levels.
Retailer Neiman Marcus said that thieves stole some of its customers' payment card information and made unauthorized charges over the holiday season.
Ginger Reeder, spokeswoman for Dallas-based Neiman Marcus Group Ltd., said in an email that the retailer had been notified in mid-December by its credit card processor about potentially unauthorized payment activity following customer purchases at stores, said AP. On Jan. 1, a forensics firm confirmed evidence that the upscale retailer was a victim of a criminal cyber-security intrusion and that some customers' credit and debit cards were possibly compromised as a result, said AP.
Reeder wouldn't estimate how many customers may be affected but said the merchant is notifying customers whose cards it now knows were used fraudulently. Neiman Marcus, which operates more than 40 upscale stores and clearance stores, is working with the Secret Service on the breach, said AP.
"We have begun to contain the intrusion and have taken significant steps to further enhance information security," Reeder wrote.