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Retail Security: A Critical Need


By Keith Bird, Managing Director, Europe, SonicWALL.

The nature of Internet-based threats have changed. Attackers have more sophisticated weapons at their disposal, and the nature of the attacks themselves have shifted. Hackers armed with Trojans, spyware programs, keygrabbers, sniffers and other tools of Internet destruction seek out vulnerabilities, wreaking havoc not just for the thrill of destruction, but for the purpose of financial gain.

Famous bank robber Willie Sutton, when asked why he robbed banks, responded plainly, "because that's where the money is." The emergence of the Internet as an important tool of commerce would have today's Willie Suttons forsaking bank robbery for Internet thievery, because today, that's where the money is. Nowhere is this more evident than in the retail sector.

The Age of Retail Connectivity
Wireless technology has come of age in retail, but in order to take advantage of its benefits, strong security must be implemented.

The need to compete on a global scale causes price pressures on the retail scene, as does the transparence afforded consumers by the Internet. Forced by these competitive pressures, retailers must drive prices downward to stay in business. With price differentials decreasing rapidly and prices gravitating towards the bottom end of the scale on all fronts, retailers must do two things:

1. They must differentiate their business through means other than price. This means offering reassurances to customers that their personal information and transaction data is kept absolutely secure.

2. They must turn to Internet-based automation methods to become more efficient and drive a bottom-line advantage.

Internet connectivity has become pervasive at the retail level. Besides the fact that most brick-and-mortar retailers also have an online presence, networking across the physical stores and with headquarters also demands new technology. Most retailers are moving away from private-line frame relay networks to IP-based VPNs over low-cost broadband connections to connect stores, because of the enormous cost advantages.

Other areas where Internet technology has enabled the retail environment include:

Customer/partner portals. These portals allow customers and partners a great many conveniences. Customer portals could, for example, be built in such a way that when a customer logs in, a custom opening page greets the customer by name, and remembers details such as purchase history, shipping address, and other particulars. Similarly, partner portals may offer efficiencies that would allow suppliers to look directly into inventory systems to determine whether or not a given product should be shipped.

Wireless POS terminal applications. Wireless is revolutionising the retail environment with things like "line busting" applications, which let sales associates serve a customer waiting in line or on the sales floor. With this type of application, sales are rung up with a mobile device, and data is transmitted wirelessly to the cashier who processes the payment.

Supply chain automation and B2B exchanges. Efficiencies in the retail supply chain have come largely on the back of Internet technology, with VPNs and other connectivity tools giving supply partners an integrated connection into your supply chain. Similarly, procurement has changed to a much more dynamic model due to the presence of large-scale B2B exchanges, also conducted largely over the Internet.

Security risks in the retail environment are substantial. A vulnerability can cause a retailer embarrassment, not to mention loss to the bottom line due both to downtime that occurred as a result of the breach, and loss of customers that occurred as a result of the negative publicity.

All of these retail applications, from the B2B exchange on the back end to the wireless POS on the front end, use the Internet as its very foundation, and are therefore vulnerable to all of the flaws, malware, and vulnerabilities every other Internet user faces every day.

Security recommendations
First of all, retail establishments should definitely take full advantage of all the technology available to them. Wireless POS technology, Internet credit clearing, and VPNs all bring competitive advantages that are not only useful, they have become an absolute necessity just to stay in business. But these new technologies must be deployed carefully, and with security built in from the very beginning.

Firewalls have become easier to administer, but despite claims of "plug and play," no firewall vendor can offer a device that works flawlessly without any set-up. And while some modern firewalls do have greater intelligence built in, that computer intelligence still requires at least a modicum of human intelligence behind it. Start with following common sense best practices. A surprising number of breaches have occurred simply because a firewall was installed without changing the default configurations and passwords.

New retail POS terminals are often based on open systems, and are therefore subject to the same vulnerabilities as your desktop PC and corporate network. But in the retail environment, there's no room for downtime. Besides the firewall, this network must also be protected from other threats through integrated anti-virus and intrusion prevention systems. Similarly, web filtering must be part of the equation. Web filtering helps keep the workplace free from objectionable material, but it also helps keep it safe. Malware often comes in through rogue web sites, and many of these attacks could be prevented with URL filtering.

That said, good security that incorporates best practices, sound policy, education, and unified threat management (UTM) can make even the largest retail organisation secure from attack. You never know where your next threat will come from, or what it will be. A well-designed security policy that uses all the technology described therein, along with user education, and a UTM environment that enhances the firewall with tight integration to other services such as anti-virus, anti-spyware, intrusion prevention and content filtering will provide more peace of mind for you and your customers.


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