Written by 11:45 am News Views: [tptn_views]

Unmasking the Retail Industry: Know Your Customers and Partners

Indonesia’s retail industry is facing significant challenges in terms of data privacy and security. The success of the industry is often overshadowed by losses due to cybercrime, which can be intimidating. Without a proper digital solution, these issues could hinder the industry’s success.

Data privacy and security are top concerns for online retailers as they navigate the digital age. This concern has only intensified in recent months due to news of a major data leak, which resulted in the misuse of online account credentials and caused significant material and intangible losses. Regulators have had to intervene to prevent such occurrences from happening again. To address this issue, it is essential to anticipate and prevent future data leaks. In the following review, we will explore what actions can be taken to ensure data privacy and security.

Navigating the tides of Indonesia’s retail market

Over the past few months, Indonesia’s retail industry has seen steady growth, with a 0.6% increase in September 2022, bringing the growth rate to 5.5%. However, this success has been overshadowed by the significant losses caused by the proliferation of cyber crimes. According to a survey conducted by Verizon Data Breach in 2016, there are three primary types of cyberattacks that are frequently encountered:

  • Website application attacks, also known as Web App Attacks, are a common form of cybercrime aimed at stealing sensitive data or exploiting software vulnerabilities. These attacks often involve the installation of malware to extract sensitive information and may also utilize techniques such as DDoS (Distributed Denial of Service) attacks.
  • POS (Point of Sale) attacks target the vulnerabilities in POS systems by spreading malware, allowing perpetrators to access and steal financial information stored on the system.
  • Card skimming, another common form of cybercrime, involves the unauthorized copying of credit or debit card information from the magnetic stripe on the card, enabling the perpetrators to obtain sensitive financial information.

In addition to these types of cybercrime, there are also several forms of fraud specific to the retail industry. One such form is return fraud, in which goods purchased online are returned for a fraudulent refund. Another common issue is fake accounts, which are often created to quickly acquire large numbers of customers online. Account takeover (ATO) attacks involve the perpetrator taking control of a user’s online account, and these attacks can result in financial losses for merchants and damage customer loyalty. Gift card fraud involves the theft and reselling of gift cards, which can be difficult to detect as they allow access to credit card information virtually.

The root of this issue

You may be wondering why this is a common issue in the retail industry. According to IFSEC Global, one of the main reasons is that retail companies often have weak security measures in place. Additionally, the interconnected nature of the retail industry means that any technology system within the business can potentially affect all other elements and parts of the company if it is hacked. The adoption of IoT (Internet of Things) technology in business also creates vulnerabilities that can be exploited by cyberattacks.

Various Solutions for preventing cyber attacks in the retail industry

It is anticipated that cyber attackers will continue to devise new methods of exploiting vulnerabilities. To stay ahead of these threats, it is crucial to be proactive and diligent in anticipating and preventing attacks. To address this challenge, ASLI RI has developed a technology system that has been proven to effectively defend against various types of cyber attacks. Some of the key features of this system include:

  • Biometric Verification System
    This is a modern method of identity verification that utilizes unique biometric characteristics of an individual, such as their face, iris, or fingerprints. This system helps to prevent illegitimate users from impersonating identities and is considered a highly secure method.
  • Biometric Authentication System
    This system is used to verify an individual’s identity by utilizing their biometric characteristics. In the online retail industry, biometric authentication systems are often implemented in the online transaction process, particularly at the confirmation stage to provide approval.
  • Digital Signatures
    Digital signatures are electronic versions of traditional signatures that offer a convenient and secure way for users to provide digital authorization. Equipped with advanced technology and the highest security mechanisms (level 4 according to KOMINFO), the digital signature system helps to protect against potential cyber-attacks.

What we do to enhance security & convenience in the retail industry

ASLI RI’s digital system not only helps retail companies maintain security but also enhances the customer experience. Are you interested in learning more about how our digital system can benefit your company? We are here to answer any questions you may have and provide a consultation on the digital solutions that would best fit your business needs. Simply contact us through the provided link to get started.

Last modified: December 21, 2022