How Reliable Retail Data Security Builds Consumer Trust

Hackers breached 97% of major U.S. retailers in 2023. These attacks exposed vast amounts of customer data despite retailers’ heavy investment in point-of-sale systems and inventory tracking. Retail data security extends beyond firewalls and encrypted payments; protecting customer information requires securing thousands of touchpoints across mobile payments, loyalty programs and inventory systems.

IT operations teams must now defend an ever-expanding network of edge computing nodes that process transactions and track inventory in real time. Modern retail’s distributed architecture creates specific security vulnerabilities that standard data center protections fail to address.

This guide outlines the security controls needed to protect payment data, customer records and inventory systems, plus practical steps for IT teams to prevent breaches and maintain customer trust through multi-layered data protection.

What is retail data?

Modern retailers collect and manage vast quantities of sensitive data across their operations, from stores to warehouses to e-commerce . This data includes:

• Payment information: credit card numbers, bank details, digital wallet IDs
• Personal identifiers: names, addresses, phone numbers, loyalty program IDs
• Transaction records: purchase history, returns, warranty claims
• Store operations data: inventory levels, supplier information, employee records
• Customer behavior data: browsing history, wish lists, shopping preferences

Each piece of data serves specific business purposes. Payment data enables transactions and refunds, while personal identifiers and customer behavior data enable loyalty programs and personalized marketing. Transaction records help optimize inventory and pricing, and store operations data drives supply chain efficiency. 

The challenge? Every data point requires protection. A breach in any system, from a point-of-sale terminal to an inventory database, can expose sensitive customer information and lead to devastating consequences: financial losses from fraud, regulatory fines, suspended payment processing capabilities and permanent damage to brand reputation.

Why is retail data at risk?

Retail networks face unique security challenges. A typical store contains dozens of connected devices, from card readers to inventory scanners. Each device processes sensitive data at the edge of the network. This decentralized structure creates data and retail security gaps that traditional data center protections miss.

Three key vulnerabilities make retail networks susceptible to attacks.

Number of edge devices

Every retail store operates a network of interconnected devices. Point-of-sale terminals capture payment data while digital displays analyze foot traffic. Security cameras record transactions as inventory systems track stock levels. Public Wi-Fi adds another layer of network activity. For IT teams, protecting this technology ecosystem means securing hundreds of access points across every store location.

Profitable targets

Cybercriminals target retail databases because they contain immediately valuable data. Payment details enable direct fraud. Customer records support identity theft. Purchase histories reveal spending patterns. Employee credentials unlock deeper system access. Attackers who breach retail systems gain instant access to valuable, marketable data.

Vendor dependencies

Retail operations require external partnerships. Payment systems need processors. Inventory requires supply chain connections. Analytics demand cloud services. Each vendor integration creates new access points to protect. More connections mean more vulnerabilities for IT teams to monitor and secure.

The biggest retail data security risks

Retail IT teams must protect against numerous attacks targeting stores and their customer data.

Payment terminal attacks

Hackers install hidden programs on payment terminals to steal credit card numbers during checkout. These programs grab card details before the system can encrypt them. Old terminals or those with weak security settings are most at risk.

Connection security gaps

Store systems need to talk to each other. This includes cash registers, inventory trackers and customer rewards programs. Each connection between systems creates a potential security gap. Attackers look for these gaps to break in and steal data from multiple systems at once.

Supplier system breaches

Hackers often break into retail networks through trusted suppliers’ systems. One weak password or unprotected supplier login can give attackers access to multiple stores’ data. Most stores focus on protecting their own networks but forget about securing connections to supplier systems.

Employee account misuse

Store employees need access to multiple systems to do their jobs. This creates risks when login details get stolen or misused. Sometimes employees accidentally misconfigure settings and expose data. In rare cases, unhappy employees deliberately misuse their access to cause damage.

Smart device attacks

Attackers target the growing network of smart retail devices, such as price scanners and security cameras. These connected devices can lack strong security controls, making them easy entry points into retail networks. When compromised, these devices give attackers a hidden foothold to access customer data.

Payment system fraud

Criminals use sophisticated tools to attack retail payment systems at multiple points. They target card readers in stores, online payment portals and payment processing systems. These attacks aim to steal customer payment data or redirect transactions to fraudulent accounts.

Email scams and ransomware

Attackers send convincing fake emails to store employees, pretending to be suppliers or corporate IT. When opened, these emails either steal login details or lock up critical store systems with ransomware. Stores must then pay to regain access to their own data.

Long-term hidden attacks

Some attackers play the long game. They quietly enter retail networks through weak points and stay hidden for months. During this time, they map out store systems, steal customer data and plant more access points. These patient attacks often cause the most damage because they’re hard to detect.

Essential retail data security solutions

IT teams can’t rely on a single security fix to protect retail data. Success requires multiple layers of protection working together. Here’s what makes the difference.

Update everything, always

Old software harbors security holes. Fresh updates plug those holes. It’s simple math: current systems = fewer breaches. IT teams need tools to push updates across all store systems fast, before attackers can exploit known weaknesses.

Lock down access points

Not everyone needs keys to every door. Give staff access to exactly what they need — nothing more. Strong passwords matter. And remote connections need extra protection. When employees move on, their access should, too.

Protect data on the move

Customer data needs protection everywhere — during checkout, in storage, moving between systems. Think of it like an armored car service for digital information. Smart security solutions create this protection automatically.

Watch the watchers

Automatic alerts catch suspicious behavior fast. Tracking who touches sensitive data helps spot potential breaches early. The right monitoring tools turn thousands of data points into actionable security insights.

Make security part of store culture

Store teams form the first line of defense. They need to spot scam emails, handle customer data properly and know exactly what to do if something looks wrong. Regular training turns awareness into action.

Trust but verify vendors

Third-party partners need access to store systems. They don’t need unlimited access. Clear security requirements, regular testing and strict access limits keep vendor connections from becoming security liabilities.

How compliance and data security in retail build trust 

Strong data security for retail businesses does more than prevent breaches — it builds lasting customer relationships. When shoppers know their data stays safe, they spend more freely and share more information. This trust creates measurable business benefits.

Better customer engagement

Customers readily join loyalty programs and share shopping preferences when they trust a retailer’s data practices. This deeper engagement helps stores personalize experiences and build stronger relationships. Shoppers stick with retailers who protect their information.

For example: A shopper who initially hesitated to join a store’s loyalty program becomes a highly engaged member after seeing clear data protection policies. They go from anonymous transactions to sharing preferences, enabling personalized offers and using the store’s mobile app — all because they trust how their data is handled.

Competitive advantage

Data breaches cost retailers customers. Stores with strong security keep customers. A retail solution that maintains reliable security becomes a key differentiator in a crowded market.

For example: When multiple retailers in a shopping district offer similar products at similar prices, customers increasingly choose the store known for protecting customer data. During industry-wide security concerns, they maintain steady foot traffic while competitors struggle to retain cautious shoppers.

Revenue protection

Security failures hurt sales two ways: immediate revenue loss during system outages and long-term customer exodus after breaches. Solid security prevents both. Protected systems keep transactions flowing. Protected customer data keeps shoppers coming back.

For example: During a busy shopping season, a store’s robust security systems prevent a potential breach that could have taken payment systems offline. By maintaining continuous operations and protecting customer data, they avoid losing both immediate sales and long-term customer trust.

Brand value growth

News of retail data breaches spreads fast. So does word of retailers who handle customer data responsibly. Maintaining strong retail data risks management and security builds brand trust that pays off for years.

Modern retail runs on customer data. Protecting that data isn’t just about avoiding problems — it’s about building the trust that powers retail growth. Reliable security and consistent compliance create the foundation customers need to shop confidently.

Achieve retail data security with SUSE

SUSE provides the tools IT teams need to protect retail industry data security across their entire network. Our retail solutions secure every point where data lives and moves.

Complete edge protection

SUSE Edge Suite protects data at every store location. It secures payment systems, inventory tracking and customer analytics at the point of creation. Built-in edge computing use cases let stores process sensitive data locally, reducing exposure during transmission. Malignant actors attempting to breach a retailer’s systems and exfiltrate personal data are detected and stopped in real time, from achieving their goals. 

Automated security controls

Our systems automatically enforce security policies across all retail devices. They monitor for threats, push critical updates and control access — all from one management point. This automation helps IT teams maintain consistent protection without constant manual oversight.

Proven compliance tools

SUSE helps retailers meet strict data protection requirements. Our security solutions include built-in controls for PCI DSS, GDPR and other retail compliance standards. Regular audits verify these controls stay effective.

Vendor security management

Our platform helps IT teams verify and control third-party access to retail systems. Clear security requirements, automated monitoring and granular access controls keep vendor connections secure without blocking necessary collaboration.

Retail data security: Final thoughts

Retail data security requires more than just preventing breaches. It demands protecting customer information at every point — from payment terminals to inventory systems to third-party connections. When retailers get security right, they build customer trust that drives business growth.

IT teams need tools that make this protection practical. Tools that automatically update systems, control access, monitor for threats and maintain compliance. Tools that work across entire retail networks, from individual store devices to company-wide systems.

Ready to strengthen your retail data security and build lasting customer trust? Contact our team to learn how SUSE’s retail security solutions can protect your operations and power your growth.

Retail data security FAQs

Why do retail businesses gather data?

Retail businesses need data to run modern stores effectively. They collect payment details for transactions, shopper preferences for personalized experiences, inventory data to keep shelves stocked and store performance metrics to boost efficiency. Each data point helps retailers serve customers better and operate more profitably.

Why are retail businesses at risk of cybercrime?

Every swipe, tap and click in retail creates valuable consumer data that attracts cybercriminals. Connected store systems, payment processing and customer databases offer multiple ways in for attackers. Third-party vendors add more potential weak points. With customer data flowing through so many systems, retail networks need constant protection.

How can retail businesses protect their data?

Protecting retail data requires a complete security strategy. Keep systems current with regular updates. Control who accesses what data and when. Watch for unusual activity. Train store teams to spot security risks. Monitor vendor connections carefully. Most importantly, layer these protections to create defense in depth — because a single security gap can compromise an entire retail network.