Cyber risks and information security

As with all online operations, omni-channels are exposed to multiple cyber risks that could undermine their integrity and functionality. The proliferation of cloud-based platforms, smart mobile devices, and exponential growth of data transmitted by omni-channel players has produced the perfect storm. Businesses are increasingly moving their IT infrastructure to the cloud, with data transactions stored remotely, and in many cases, they are managed by a third party IT vendor. Such data can be sensitive and personal. Therefore, it is important that firms operating online understand the cyber risk involved. With increasing connectivity between smart devices, users are more vulnerable and prone to cyber crimes such as hijacking and data leaks. These invisible background hacks mean that omni-channels are at risk.

Cyber crime can disrupt or even disable businesses. Online systems can crash and services become unavailable. Typical is Distributed Denial of Service, or DDoS for short. DDoS is a simultaneous attack on a system by a number of machines connected to the internet. In recent years, there have been many cases of commercial and governmental web portals disabled by DDoS attacks. It is clear that multiple touch points make omni-channels quite vulnerable to cyber attacks. Research has suggested a few cyber security guidelines. Firstly, protecting multiple points of exposure- smart devices create extra touch points that must be secure. Second, enhancing security visibility- IT departments need to understand that cyber security no longer is limited to their own infrastructure.

They need to be aware of who is online, from where, with what device, and for how long. Lastly, continually addressing new risks- cyber criminals are becoming inventive. Increasingly, they are using sophisticated techniques to attack new points of connectivity. With the proliferation of omni-channel retailing, it is critical for businesses to stay ahead of cyber risks.