SECURITY/RISK

Amazon’s newest acquisition has taken steps to replace vulnerable checkout systems that cyber-thieves used to pilfer customer data.

As cyber-threats become more prolific, consumers believe fraud has become an inevitable part of shopping online.

Pizza Hut is the newest chain to be compromised by cyber-thieves.

Though many types of theft deterrent equipment exist, one of the most effective and affordable approaches is preventing retail shoplifting is by avoiding “blind spots” in the store layout.   In this regard, one of the hardest places for supermarket or mass merchandise cashiers to control and easily view has been under the shopping basket, which is usually blocked by a basketful of other items above it.  Failing to ring up items under the basket before customers leave the store can be extremely costly to retailers.

Cyber-thieves have found their way into Whole Foods Markets’ payment network.   The natural foods grocer, which Amazon purchased for $13.7 billion in August, learned that payment card information processed at certain venues within some of its stores, such as taprooms and full table-service restaurants, has been breached. These venues use a different point-of-sale system than the company’s primary checkout systems.   

Sonic has been targeted in a cyber-attack.   The restaurant chain, which is known for drive-up ordering kiosks and roller skating waitresses, has confirmed it has suffered a data security breach. Specifically, the incident has jeopardized the security of credit cards from up to 5 million customers, according to KrebsOnSecurity, which first broke the news.  

Merchants’ fraud costs are a growing expense — and the pace shows no sign of slowing.   Fraud losses and management eat 8% of the average e-commerce retailer’s revenue, up from 7.6% in 2016, according to “2017 Financial Impact of Fraud Study: Exploring the Financial Impact of Fraud in a Digital World.” The report is from Vesta Corp. and Javelin Strategy & Research.  

Despite the ramping up of global data regulations, most consumers are concerned about how companies collect and use their information.   In fact, an overwhelming 96% of consumers are "somewhat" to "extremely" concerned about data collection and usage. This is understandable, as more than 75% engage in digital payment transactions at least once a month.