Omnichannel Retail In South Africa- A Hacker's Paradise?

Calin Cloete, enterprise security solutions lead at ESET Southern Africa. Image supplied

Cybercriminals can use a variety of sophisticated tactics to breach a business's security systems at vulnerable points and gain access to sensitive customer data.

Omnichannel retail has become essential for customer retention, with consumers expecting a consistent experience across in-store, online, and mobile platforms. But as convenience grows, so do cybersecurity risks.

The more interconnected commerce becomes, the more opportunities there are for cybercriminals to target valuable customer data. For South African retailers, this highlights an urgent need to secure their network to avoid damage to both profit and reputation.

Omnichannel retail networks are more susceptible to cyber threats

Omnichannel strategies require extensive customer data collection across multiple touchpoints to deliver a seamless experience. The increasing reliance on interconnected technologies has expanded the attack surface for cybercriminals.

Real-time data sharing between online platforms, mobile apps, and physical stores creates multiple points where data can be intercepted. As a result, omnichannel retail networks are more susceptible to cyber threats.

Retailers make attractive targets for cybercriminals because they hold highly monetisable personal and financial information on their customers.Cybercriminals can use a variety of sophisticated tactics to breach a business's security systems at vulnerable points and gain access to sensitive customer data.

This includes login credentials, card details, and even purchase history. Once this data is compromised, cybercriminals can use it for identity theft, financial fraud, or other malicious activities.

Since omnichannel requires openness and accessibility across platforms, retailers may have the perception that the restrictions imposed by cybersecurity will hinder the process, especially when it comes to the customer experience – for example, multi-factor authentication, CAPTCHA, or complex password requirements.

However, for most consumers, strong security builds confidence and trust, which are vital when it comes to making purchases.

Retail businesses can also be made vulnerable through the third-party platforms and software they rely on to power the integrated shopping experience.

In 2022, pharmacy retail giant Dis-Chem suffered a cyberattack as a result of a third-party service provider, which compromised the data of over 3.6 million South Africans.

Strong security builds confidence and trust

Payment processors, marketing integrations, and customer service tools can introduce security gaps if not properly vetted and monitored. A breach in any of these systems can compromise customer data, even if the retailer’s own security measures are strong.

Retailers need to audit all suppliers, including digital partners and software vendors, to ensure their security posture is up to scratch.

Last year, the average cost of a data breach for South African companies reached R41m, according to the 2024 IBM Cost of a Data Breach Report, driven by business disruption and post-breach response activities.

For many retailers, comprehensive cybersecurity may seem like an unnecessary expense – until they experience a cyberattack. Prevention is far cheaper than remediation.

In many cases, organisations suffer reputational damage, legal liability and operational downtime that far exceed the cost of implementing cybersecurity. Plus, with the range of ready-made and purpose-built software available, it doesn’t have to be a difficult task.

As South African retailers continue to innovate in customer experience, balancing security with convenience will be crucial for sustainable growth.

Those who view security as an enabler of their omnichannel strategy, rather than a separate requirement that conflicts with it, will not only protect their customers' data – but also strengthen brand trust and loyalty in an increasingly competitive marketplace.