Cybersecurity risks in retail and service industries

The digital transformation of the service and retail sectors has increased vulnerability to cyberattacks due to the high volume of sensitive customer and employee data processed through e-commerce, mobile apps, and loyalty programs.

In Canada, the restaurant industry faces significant financial risks. By 2025, Canadian companies paid an average of $6.98 million per breach, with phishing-related incidents averaging $7.91 million. While attack volumes for small and medium-sized organizations showed a downward trend between 2022 and 2026, large organizations experienced a sharp increase in incidents. The Canadian Centre for Cyber Security emphasizes the necessity of integrating security into business processes to protect data such as credit card numbers and loyalty program details.

Globally, research indicates that 87% of retail companies have experienced cyber incidents within a 12-month period. Common threats include phishing (21%), cyber espionage (19%), and web application exploits (18%). Attackers increasingly use social engineering tactics, including deepfakes (13%), invoice fraud (13%), and vishing (8%), often to steal client or employee personal data.

Recent developments show that attackers are utilizing AI to rapidly identify vulnerabilities within customer-facing applications and APIs. Security gaps are frequently created when marketing or business departments deploy digital services through third-party contractors without full oversight from central IT departments. Such vulnerabilities have led to significant leaks, including the exposure of approximately 2.15 million Lawson ID records.