Wireless in Stores: Savings, Efficiency, and an Open Nose

This report by Steve Rowen, Research Analyst from the Retail Systems Alert Group, makes interesting reading.

Wireless technology is everywhere. In fact, as I write this piece, I am currently using two wireless devices, and there's a good chance you may be utilizing one or two while reading it.

In stores, wireless technologies have become so pervasive that often times retailers take them for granted. They reduce costs. They increase efficiency. They make the customer's shopping experience more enjoyable. But without proper consideration to security, they are incredibly dangerous.

Take for instance the unfortunate souls over at TJX Corporation. As more is unearthed on the events of that company's breach, it appears that the entire affair began from a simple interception of an unsecured wireless signal from a single retail location.

The criminals allegedly sat outside of Marshall's store near St. Paul, MN, picking up the signal that bounced freely between employee handhelds, wireless POS devices, and the store's mainframe system. Once they had decrypted the signal's simple encryption, the perpetrators are then reported to have installed software on TJX's central database in Framingham, MA, siphoning (at least) 45.7 million credit cards, with projections that number may climb to as many as 200 million. And while issuing banks prepare their legal case, the Wall Street Journal reports that the total cost over five years could exceed $1 billion.

RSAG has had the opportunity to interview several individuals closely involved in the TJX case, and while we thoroughly believe the retailer's bill will not reach anywhere near the $1 billion mark, it is a fair to predict that the company's ultimate financial beating will be exponentially greater than the jab it would have taken to pre-emptively shore up wireless security.

Which brings me to this point: Today's technology vendors are racing to find better, more cost effective ways to secure the wireless signals of devices that retailers are already using both in the store and the distribution center: those which they simply cannot revert to living without. Legacy hardware: wireless payment systems, computers, POS systems, anti-theft systems, hand-held devices, phones, PDA's - even 900 MHz devices (yes, they're still out there) - each of these posts a real, viable threat to each and every retailer who has come to leverage their value.

This race ultimately benefits retailers who are already diligently working toward their PCI compliance mandate, and is being led by such players as Aruba Networks, Cisco Systems, AirDefense, Columbitech - the list goes on and on. And while it is only a short matter of time until the next high-profile data security breach resulting from wireless signaltheft, we strongly urge retailers to pay due dilligence: aligning the IT and corporate vision, researching the available solutions, and most importantly, transforming the security of customer data into a Board Room discussion.

If you would like further information about this subject, click on the link below and download the report: Retail Systems still vulnerable. Please leave your comments.......

http://www.esterlinavinyards.com/report-retail-systems-still-vulnerable_43162.html




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