CYBERSECURITY
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Garett Seivold Garett Seivold is senior writer for LPM. A trained journalist, he has spent the majority of his career writing about security, risk management, supply chain, and loss prevention topics. He can be reached at GarettS@LPportal.com.
How Internet of Things Security Is Impacting Retailers I
Itzik Feiglevitch
nternet of Things (IoT) security is a growing concern for retailers. “IoT is one of the biggest trends in the market today,” said Itzik Feiglevitch, product manager for Check Point Software Technologies, at the RSA Conference in May 2021. Huge numbers of devices are expected to be added in the coming years to company networks. And while Feiglevitch said they’re great—they increase operational efficiency and move companies into the digital world—a retailer also needs to take into consideration that “all of those IoT devices are now part of our networks, and they bring with them lots of security risks.” According to Check Point’s research, a typical enterprise of 5,000 employees could have as many as 20,000 IoT devices. “I know it seems like a huge number, but think of all the IP TVs, printers, surveillance cameras, or the sensors inside the buildings, the smart elevators, smart lighting—everything is connected to the enterprise network.”
digital signage; for insight into customer preferences and behavior; and for loyalty and promotion—using sensors to identify the time and place of the customer to better target assistance or incentives. Connected sensors are being used for managing energy and detecting equipment problems, especially in grocery, and in warehouses and stores to optimize supply and fulfillment, as with RFID and smart shelves. The global Internet of Things in retail was valued at $31.99 billion in 2020 and is expected to expand at a compound annual growth rate of 26 percent from 2021 to 2028, according to market analysis by Grand View Research. “IoT is expected to revamp the retail industry, transforming traditional brick and mortar shops into advanced digital stores,” according to the report.
The surge in the number of interconnected devices in retail outlets and the decreasing prices of IoT sensors are expected to propel the growth. “Retailers’ commitment to IoT innovation is contributing to the growth of connected devices, including both RFID tags and beacons … and the proliferation of smartphones and the use of mobile applications are driving the retail software segment growth.” Problematically, many IoT devices are unmanaged. “They are connected to our network, but we don’t have any way to control those devices, to view them, and define what those devices can and cannot do inside our network,” said Feiglevitch. “If we go and search for those devices inside our Continued on page 62
IoT in the Retail Sector
Software
Market Size by Solution, 2017–2028 (USD Billion)
Hardware
IoT Uses in Retail IoT sensors are increasingly being used in retail to enhance the customer experience, such as with smart mirrors and July–August 2021
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2021
2022
Source: Grand View Research
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