Cyber-attacks which can “harm brand reputation overnight” will only increase, says retail experts at audit, tax and consulting firm RSM UK.
The warning was issued after retailers M&S and Co-op became the latest big businesses to be targeted by hackers.
Research released last week by Maru, showed that snapshot polling of 500 people revealed there was a 14% drop in the number of consumers who would recommend M&S to others, falling to 73% from 87%, before the attack.
Now, retail firms are advised to review their cyber risk controls to ensure they are as robust as possible.
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Jacqui Baker, partner and head of retail at RSM UK, said: “The recent wave of cyber-attacks adds another critical layer of risk, one that can significantly damage consumer trust, disrupt operations, and harm brand reputation overnight.”
“In a sector where customer loyalty is hard-won and competition is high, ensuring data security and operational continuity is paramount.”
She added that cyber risk “continues to move at speed, particularly due to advancements in technology, meaning attacks are becoming increasingly sophisticated”.
“Quite often, it’s a case of when, not if, one takes place, so it needs to be high up on retailers’ risk register,” she said.
“Retailers must now view cyber resilience not only as a technical requirement but as a core component of customer experience and brand protection.”
In April, the government launched its National Cyber Security Centre (NCSC) Cyber Governance Code of Practice, providing organisations with clear guidance and best practice on managing cyber risks.
Sheila Pancholi, technology risk partner at RSM UK, said it was a welcomed move, “which supports businesses in governing their cyber risks to enhance operational resilience”.
“The Cyber Governance Code of Practice states that half (50%) of businesses and two thirds (66%) of high-income charities experienced some form of cyber security breach or attack in the last 12 months, with the prevalence of attacks being even higher amongst medium businesses (70%) and large businesses (74%),” she said.
“This serves as a stark reminder that there’s more to be done to improve cyber resilience and keep pace with new emerging threats.”
RSM UK said the first line of defence against cyberattacks is often employees, so it is important to ensure staff are regularly trained to spot attempts to access systems, via increasingly sophisticated phishing emails (e.g. ClickFix Phish), or links to bogus websites.
