In the last blog, I shared IHL Group’s findings from the “2015 Store Infrastructure Study”. Primarily, I looked at the WiFi results and the realization that stores need to upgrade their networks to support new cloud-based internal and customer-facing applications. Now let’s dig into the security part of the results.
According to the survey, 54% of respondents consider their WAN/LAN network security “currently ready.” Another 34% say they’ll be ready within 12 months.
EMV compliance is clearly a driver for network security updates. It represents the largest spend area for 2015 at 49%. Retailers are expected to enact this global standard at POS terminals and ATMs by October.
Most of a retailer’s data security budget is now focused on PCI standards. Although budgets have jumped from nearly 10% in the last two years, a majority is spent getting and staying PCI compliant.
“Retailers with fewer than 50 stores say that 57.8% of their Data Security budget is being spent on PCI compliance initiatives, leaving much less to protect against external attacks than the larger retailers,” the research group found.
Interestingly, 63% of retailers surveyed claimed they have Breach Insurance.
“The fact that Breach Insurance is currently more widely adopted than P2P Encryption and Tokenization (both considered to be table stakes in payment security at this juncture) should not be lost on the reader,” according to IHL Group.
Outside of industry mandates, retailers understand the importance of their security posture. End-to-end managed security minimizes risk to assets and lowers operation costs associated with managing, monitoring and securing infrastructure. A high level of security is essential for customer engagement and loyalty.
Proper security across the network, especially WiFi, enables you to procure valuable customer data and integrate it with loyalty programs.
But as the study found, “all of the supporting systems need to be in place as well for such benefits to accrue to the retailer.”