Credential Theft Emerges as Leading Cyber Threat to Retail Sector, New Report Finds

Credential harvesting has become the primary cybersecurity threat facing retailers, accounting for 38% of all compromised data in 2023, according to KnowBe4's "Global Retail Report 2025." This marks a significant shift in cybercriminal tactics as payment card theft declined to 25%. Implementing robust multi-factor authentication solutions has become crucial for protecting retail operations.

The retail sector has experienced an alarming 56% increase in cyberattacks compared to the previous year, placing it among the top five industries targeted by cybercriminals. The average cost of a retail data breach reached $3.48 million in 2024, representing an 18% increase from 2023. Organizations must prioritize comprehensive data security measures to protect against these growing threats.

Geographic Distribution of Attacks

North America bears the brunt of retail cyberattacks, accounting for 56% of all incidents. Latin America follows with 32% of attacks, while Europe experiences 11%. The United States retail sector is particularly vulnerable, suffering 45% of global ransomware attacks despite representing only 28% of market share.

Training Shows Promise in Attack Prevention

Security awareness training has proven highly effective in reducing employee vulnerability to phishing attempts. Organizations implementing year-long security awareness training and simulated phishing evaluations saw dramatic improvements:

• Large retail organizations reduced employee susceptibility from 42.4% to 5.2%
• Small and medium-sized retailers achieved similar results, with rates dropping to 4.7% and 4.5% respectively
• Continuous training proved effective across all organizational sizes

Enhanced Security Measures

The rising threat of credential harvesting presents significant challenges for retail operations. Companies must now allocate more resources to cybersecurity measures and employee training programs. This shift requires retailers to implement essential password security best practices alongside:

• Implementing robust authentication systems
• Regularly updating security protocols
• Investing in continuous employee training
• Maintaining vigilant monitoring of credential-based threats

According to the National Institute of Standards and Technology, organizations should implement a comprehensive security awareness program that includes regular training sessions, security assessments, and incident response planning to effectively combat emerging cyber threats.

The findings highlight the critical need for retailers to adapt their security strategies to address the growing threat of credential harvesting while maintaining protection against traditional payment card theft schemes.