Retail Cybersecurity: The Dangerous Confidence Gap
New research from LevelBlue reveals a troubling disconnect in retail cybersecurity. While 49% of retail executives claim they're highly competent at defending against cyber adversaries, only 25% say they're actually ready for AI-powered threats and just 33% feel prepared for deepfake attacks.
This confidence gap is dangerous. Organisations that believe they're adequately protected may delay essential security investments or overlook emerging threats until it's too late.
The Threat Landscape is Intensifying
LevelBlue’s 2025 Spotlight Report: Aligning Cyber Resilience and Business Goals in the Retail Sector surveyed 220 retail executives across 14 countries and paints a concerning picture. 44% are experiencing significantly higher attack volumes than twelve months ago, while 34% faced breaches in the past year. The complexity of threats continues to grow, with GenAI-driven technologies making attacks more believable and better able to bypass defences. 63% of executives say it's becoming harder for employees to identify real threats.
Looking ahead, ransomware tops the list of concerns at 55%, followed by business email compromise at 49%, personal information exfiltration at 47%, and phishing attacks via QR codes at 47%. Yet preparedness remains worryingly low across all categories, with business email compromise showing the highest readiness at only 61%.
Supply Chain: The Dangerous Blind Spot
Software supply chain attacks represent one of the most dangerous threat vectors facing retailers today. Once attackers compromise a supplier, they can move laterally through networks, steal credentials, gain control of valuable systems, and distribute malware to potentially thousands of victims. These attacks often go undetected until compromised software has spread widely.
Despite the risks, retailers show limited visibility and poor prioritisation. Nearly half of executives admit having very low to moderate visibility into their software supply chain, and only 22% say engaging with suppliers about their security credentials ranks as a top three priority for the next 12 months.
This complacency is concerning. Retailers increasingly depend on complex networks of third-party software, APIs, integrations, and services. Each connection point is a potential entry route for attackers, yet organisations often neglect proper vetting, monitoring, and risk management procedures.
Organisational Readiness Remains Weak
Building cyber resilience requires more than technology investments. Organisations need a company-wide culture where everyone understands their role in cybersecurity. The research shows progress in some areas but significant gaps remain.
While 60% report their cybersecurity teams work with lines of business, only 40% claim to have an effective company-wide cybersecurity culture. Even more concerning, just 35% say they have effective business continuity and incident response plans in place.
Retailers also underinvest in workforce education. Only about one-third have engaged external support for training and awareness in the past twelve months. This limited investment in human defences leaves organisations vulnerable to social engineering, phishing, and insider threats.
Four Steps to Building Cyber Resilience
Based on its findings, LevelBlue recommends four priorities for retailers looking to close these gaps.
- Push cyber resilience up the organisation by enhancing engagement across leadership and incorporating security considerations into high-level business decisions.
- Embed cybersecurity responsibilities throughout the organisation by promoting a culture where staff at all levels adopt safe online behaviours and feel empowered to report potential threats.
- Be proactive, not reactive by adopting Zero Trust Architecture, investing in advanced threat detection capabilities, and engaging external providers for expertise and training.
- Prioritise resilience in the software supply chain by requesting evidence of suppliers' security credentials and conducting regular assessments across your third-party ecosystem.
The Opportunity for Irish MSPs
This research highlights significant opportunities for Irish MSPs to help retail clients address critical security gaps. Retailers increasingly recognise they cannot build comprehensive security capabilities in-house and are actively seeking external expertise.
LevelBlue, the world's largest pure-play managed security services provider, combines AI-powered security operations, advanced threat intelligence, and expert human skills to help organisations build resilience. Through Renaissance, Irish MSPs can access LevelBlue's managed security services, threat intelligence, and strategic advisory capabilities. Contact us to discuss your options.
LevelBlue's partner program provides MSPs with the tools, training, and support needed to deliver enterprise-grade security solutions to retail clients. Contact us to discuss your options.