IndependentsMar 06, 2025
Wixon Jewelers to Close After 37 YearsFirst-generation jewelers Dan and Hope Wixon are retiring and will close their Minneapolis-area jewelry store in May.
SurveysAug 02, 2018
Report: US Retailers Are Top Targets for Data Breaches
According to the 2018 Thales Data Threat Report, U.S. retailers experienced twice as many IT security breaches than other retailers worldwide last year.
New York—A new report says that retailers in the United States are experiencing the most IT security breaches worldwide.
The retail edition of the 2018 Thales Data Threat Report based its findings on input from 100 senior retail IT security managers in the U.S. and 96 IT security managers from retailers in other countries to establish the state of IT security today.
It found that despite an increase in IT security spending—84 percent of U.S. retailers polled plan on upping their budgets this year, compared to 77 percent last year and 67 percent of international retailers this year—cyber-attackers are by and large staying one step ahead of companies.
Fifty percent of U.S. retailers surveyed said they experienced IT security breaches last year alone, compared to 19 percent in the 2017 report. Only 27 percent of global retailers, meanwhile, said they experienced a breach last year.
RELATED CONTENT: Saks, Lord & Taylor the Latest Hit by HackersSeventy-five percent of the respondents in the U.S. said they’ve experienced at least one breach, while 60 percent of global retailers said the same.
The retail industry, which is becoming increasingly digital, is a target for cyber attackers due to its high volume of credit card transactions. In fact, Thales says that overall, it’s the second most breached industry in the United States behind the federal government.
The results of the Thales study on IT security in retail mirror what the Jewelers Security Alliance found in its 2017 crime report. The JSA saw such a large uptick in cybercrime last year that for the first time ever, it broke the losses out separately.
The average dollar loss from cybercrime in the jewelry industry was $1.2 million last year, with JSA President John J. Kennedy calling it a “dangerous and growing crime trend.”
A Bad Investment
Despite the uptick in IT security budgets, the Thales report concluded that retailers are putting their money in places that even they recognize to be ineffective. what they themselves deem the most ineffective places.
Of available tools to battle security breaches, 91 percent of U.S. retailers said analysis and correlation tools are the most effective and 90 percent said data-in-motion— providing security for an e-mail in transit while it’s being sent, for example—is the second most effective weapon.
However, they indicated that their highest spending increases would go to endpoint/mobile defenses (77 percent), even though
Editors' Picks
Sponsored by
they ranked this as the least effective security method. Only 57 percent of retailers plan to increase the budget for data-at rest (stored data) defense, and only 62 percent for data-in-motion defenses, despite these being more effective.
Where the Money Should Go
Thales asserts that tools like discovery/classification and encryption or tokenization are key to protecting against IT security breaches today.
Only 26 percent of U.S. retailers polled said they are implementing encryption in the cloud, compared with 30 percent of global retailers.
Fifty-two percent of U.S. respondents cited a lack of perceived need as the top reason for not devoting more resources to tools like encryption and tokenization, while 47 percent also cited impact on business performance and 46 percent were put off by its complexity.
In a past interview with National Jeweler, Kennedy offered a list of cybersecurity recommendations for jewelers specifically, some of which might involve hiring an IT firm.
They include: proper firewalls, up-to-date anti-virus software, the avoidance of “risky” internet sites and the training of staff on the types of mistakes that often let in hackers.
Staff need to be told, or reminded, not to open or click into unknown or suspicious emails, and to look carefully at emails from known parties for misspellings and other anomalies as emails addressed can be spoofed.
Thales said that retailers should “re-prioritize” their IT security toolsets, focusing on ones that offer service-based deployments, platforms and automation to reduce complexity while adding protection.
It also recommended that retailers go beyond national and international compliance measures and employ security tools like encryption and tokenization. Encryption needs to be applied to all platforms, not just desktop and laptop computers.
Specifically, Thales recommends encrypting the cloud, big data, data located within containers and IoT (interconnected devices with IP addresses).
It’s likely that compliance guidelines will one day mandate these practices, the report said, so retailers can benefit from getting a head start on them, hopefully avoiding data breaches in the process.
RELATED CONTENT: JSA: Smash-and-Grab Robberies, Cybercrime Up in 2017“Traditional endpoint and network security are no longer sufficient, particularly for heavy adopters of public cloud resources such as the U.S. retail sector,” the report said, especially with the expanding use of external cloud services like SaaS (software as a service), PaaS (platform as a service) and IaaS (infrastructure as a service).
Where the Money Should Go
Thales asserts that tools like discovery/classification and encryption or tokenization are key to protecting against IT security breaches today.
Only 26 percent of U.S. retailers polled said they are implementing encryption in the cloud, compared with 30 percent of global retailers.
Fifty-two percent of U.S. respondents cited a lack of perceived need as the top reason for not devoting more resources to tools like encryption and tokenization, while 47 percent also cited impact on business performance and 46 percent were put off by its complexity.
In a past interview with National Jeweler, Kennedy offered a list of cybersecurity recommendations for jewelers specifically, some of which might involve hiring an IT firm.
They include: proper firewalls, up-to-date anti-virus software, the avoidance of “risky” internet sites and the training of staff on the types of mistakes that often let in hackers.
Staff need to be told, or reminded, not to open or click into unknown or suspicious emails, and to look carefully at emails from known parties for misspellings and other anomalies as emails addressed can be spoofed.
Thales said that retailers should “re-prioritize” their IT security toolsets, focusing on ones that offer service-based deployments, platforms and automation to reduce complexity while adding protection.
It also recommended that retailers go beyond national and international compliance measures and employ security tools like encryption and tokenization. Encryption needs to be applied to all platforms, not just desktop and laptop computers.
Specifically, Thales recommends encrypting the cloud, big data, data located within containers and IoT (interconnected devices with IP addresses).
It’s likely that compliance guidelines will one day mandate these practices, the report said, so retailers can benefit from getting a head start on them, hopefully avoiding data breaches in the process.
More on Surveys
The Latest
CollectionsMar 06, 2025
Guzema, 3.1 Phillip Lim Collab on New ‘Snake’ DesignsThe limited-edition collection, a nod to the Year of the Snake, is Ukrainian brand Guzema’s first partnership with a U.S. brand.
IndependentsMar 06, 2025
Stephen Barnes Is the New Owner of IJOAfter more than 50 years, Jeff Roberts is handing over ownership of the organization to IJO President Stephen Barnes.
Brought to you by
Have a Plan for EmergenciesEmergencies can happen anytime, anywhere , and Jewelers of America has what you need to be prepared for it all.
Events & AwardsMar 06, 2025
Borsheims’ ‘Ike-It’ Award Goes to JewelerSenior Jeweler Jay Wolff was named employee of the year.
Weekly QuizFeb 27, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
MajorsMar 05, 2025
Neiman Marcus’ Dallas Flagship Store to Close, Confirms Saks GlobalThe 111-year-old store will close following a dispute among Saks Global, a landlord, and the City of Dallas over a small piece of land.
AuctionsMar 05, 2025
Sotheby's To Auction 51 ‘Alien’ WatchesThe upcoming “Area_51” watch sale is a collaboration with heist-out, featuring vintage and modern timepieces with futuristic designs.
Brought to you by
A Diamond ETF is the Way to Reinvigorate Natural Diamond SalesThe jewelry industry faces challenges from lab-grown diamonds. A diamond ETF can restore natural diamonds' value and drive investor demand.
MajorsMar 05, 2025
Jewelers of America Unveils 3-Year Strategic Plan The trade organization, which will mark 120 years of service next year, has a refined focus and a new mission statement.
Events & AwardsMar 05, 2025
92NY Accepting 2025 Jewelry Artist Residency ApplicationsThe application period is now open for established and emerging jewelers and metalsmiths to apply to the month-long residency program.
CrimeMar 04, 2025
4 Suspects Arrested in Fatal Armed Robbery of California Jewelry Store Uc Thí Vo, who co-owned Kim Tin Jewelry in Sacramento with her husband of 40 years, was killed during the November 2024 robbery.
CrimeMar 04, 2025
NYC Diamond Dealer Pleads Guilty to Lab-Grown Diamond SwapsManashe Sezanayev pleaded guilty to grand larceny and is expected to receive five years’ probation when he’s sentenced in May.
TrendsMar 04, 2025
Amanda’s Style File: Peaceful and Powerful AquamarineThe March birthstone pairs perfectly with hues of Mocha Mousse, Pantone’s Color of the Year for 2025.
ColumnistsMar 04, 2025
The Smart Lab: Using Online Events to Supercharge Sales Emmanuel Raheb shares strategies to prepare for, publicize, and engage the audience during events on platforms like TikTok and Zoom.
EditorsMar 03, 2025
Drop Necklaces, Archival Pieces Take Over at the 2025 OscarsFrom Doja Cat to Mikey Madison and Selena Gomez, many of this year’s Academy Awards attendees donned drop necklaces.
Policies & IssuesMar 03, 2025
Customs Indefinitely Postpones Requirement to Disclose Country of MiningOriginally slated to take effect in April, official U.S. Customs and Border Protection documents now show the implementation date as “TBD.”
Events & AwardsMar 03, 2025
AGA Now Accepting Applications for Its Gemological Education Scholarship The application period for the program is now open for aspiring gemologists around the world.
CollectionsFeb 28, 2025
Piece of the Week: Ironhorse Quillwork EarringsThe work of Indigenous designer Joe Big Mountain, these earrings are similar to the pair Lily Gladstone just wore to the SAG Awards.
AuctionsFeb 28, 2025
300-Year-Old Ring With Ties to Witch Trial Judge Up for Auction A metal detectorist uncovered the ring created in memory of Sir Richard Rainsford, who presided over some of England’s last witch trials.
Recorded WebinarsFeb 28, 2025
Watch: 2025 Jewelry Trends ForecastFine jewelry consultant and publicist Francesca Simons joins Amanda Gizzi and Natalie Francisco to discuss the trends set to rise this year.
TrendsFeb 27, 2025
Model Winnie Harlow Says ‘Yes’ to 3-Stone Engagement RingHarlow’s partner, NBA player Kyle Kuzma, worked with Vobara to design the ring, which features oval and pear-shaped diamonds.
MajorsFeb 27, 2025
Winona Ryder, Iman Star in New Pandora CampaignThe Danish jeweler released the next chapter of its “Be Love” campaign, which celebrates love in all its forms.
SourcingFeb 27, 2025
Gemfields Holds Mini Auction for Higher-Quality EmeraldsThe 13 lots on offer were comprised of material that previously went unsold at the miner’s November auction.
Events & AwardsFeb 27, 2025
JA to Host Workshop During Alabama Jewelers Association ConventionThe learning workshop and the convention are both scheduled to take place April 26 and 27 in Montgomery, Alabama.
Policies & IssuesFeb 26, 2025
EU Once Again Pushes Back Deadline on Diamond Traceability The EU, like the U.S., also now will require diamond importers to provide information about where exactly the diamonds were mined.
SourcingFeb 26, 2025
De Beers, Botswana Make New Diamond Sales Deal OfficialThe formal signing of the agreement comes nearly two years after De Beers and Botswana initially announced they had reached a new deal.
Events & AwardsFeb 26, 2025
JFC Names 2025 ‘Facets’ HonoreesThe charity will celebrate Pandora CEO Alexander Lacik and Brilliant Earth CEO Beth Gerstein at its annual event in Las Vegas.
