Research: 31 Percent of Retail, Restaurant and Hospitality Companies Have Experienced Data Breach

New data released by Cornell University’s Center for Hospitality Research and FreedomPay, a global leader in data-driven commerce, reveals that while nearly all (96%) surveyed retail, restaurant and hospitality stakeholders are confident in their companies’ internal risk assessment processes, their satisfaction (95%) in the security of their systems is misaligned with reality, as one-third of companies (31%) have experienced a data breach in their company's history. Of companies that have been breached, 89% have been hit more than once in a year, and 69% of retail businesses have been breached upwards of three times in a year.

Check Please! How Restaurant, Retail and Hospitality Businesses are Managing Cybersecurity Risks – a joint study between Cornell and FreedomPay – is based on a new survey of small, medium, and large-size enterprises across the hospitality, retail, and food and beverage sectors.

“Especially over the past two years, cybersecurity has been top of mind for businesses as we navigate a highly complex eCommerce network,” said Chris Kronenthal, President of FreedomPay. “Retailers and hospitality businesses increasingly view their payments systems as more than transaction processing – they are important sources of data and customer insights. Merchants and consumers alike need the assurance that this data is being protected and managed properly.”

"These findings provide a baseline understanding of how key decision-makers are handling cybersecurity issues and offer key insights for optimizing and fortifying systems as we continue down this path of accelerated digital transformation," said Professor Linda Canina, the Dr. Michael Dang Director of the Center for Hospitality Research at the Cornell Peter and Stephanie Nolan School of Hotel Administration.

With new cyber threats emerging daily both internally and externally, business leaders are juggling a full slate of concerns and challenges. Threats such as payment integrity (59%) and malware (58%) are the most cited concerns, with risk management (57%) cited as the biggest challenge leaders say their systems face. Companies also fear internal threats, with hospitality companies most frequently citing human error (86%) and lack of employee education (81%) as negatively impacting cybersecurity systems.

Businesses’ best efforts to protect themselves and customers are spurring growing complexity and system proliferation. The findings revealed three-quarters (74%) of companies use more than one cybersecurity system. Medium merchants (80%) are significantly more likely than small merchants (67%) to use more than one system. More than half of companies (56%) have many cybersecurity systems in many locations. Overall, companies are split on whether systems are governed by a single department (51%) or multiple (49%). Small merchants (57%) are significantly more likely to keep governance to one department, while large merchants (63%) are significantly more likely to have multiple departments involved.

Businesses are challenged to balance security with customer preferences, with many implementing heightened cybersecurity measures to make their customers feel more secured and reassured when making a purchase. The study found that 91% of companies believe their customers deeply care about cybersecurity while 86% believe it increases customer loyalty. Yet, companies acknowledge the inherent tradeoffs – namely, two-thirds (65%) of leaders believe that customers are annoyed by extra security measures, and they want systems to be easy to use (67%).

Budgetary concerns may also play a factor in determining any potential system enhancements – among the few (15%) that currently do not have plans to enhance their system, they are most likely to cite preventative costs (61%) and an unwillingness to have a disruption in service (52%).

Despite these roadblocks, companies have said they are increasing or have increased their IT budgets, calling out the COVID-19 pandemic and technology as driving forces. Other notable findings include:

  • In The Dark: More than one-third (35%) of surveyed leaders do not know how much of their company’s budget is spent on cybersecurity.
  • Bicameral Opinion: While 91% of respondents agree that their customers do care about cybersecurity, 48% also believe their customers do not care about cybersecurity.
  • Inaction: Nearly all (96%) companies say they value the importance of security systems to protect their data, and 85% agree that their customers would be more satisfied if they had extra security measures in place. Yet, half (50%) have either not increased their IT security budget or decreased their budget since 2019.
  • Show Me The Money: Still, companies are divided on what precautions and guidance are worth the cost. Four-fifths (83%) of companies who do use a third-party to manage and secure information say this option is “more cost-effective” for their business, while half (51%) of companies who do not use a third-party supplier cite it as being “more costly” than their current process.
  • Checking The Box? Almost all merchants (91%) are very or extremely confident that their company adequately trains end-users, relying on conferences and seminars (71%) to keep them trained and engaged. Notably, small (92%) and medium (95%) merchants are significantly more confident than their large (79%) counterparts, where the most common form of end-user engagement comes from training videos (82%).
  • Looking for a Leader: A majority of companies (87%) say they would welcome involvement from the U.S. government to fight cybersecurity threats as well as enhance policy (84%). Large merchants (threats-76%, policy-74%) and retail companies (threats-81%, policy-75%) are significantly less likely to want the U.S. government involved.

Featured

  • New Report Reveals Top Trends Transforming Access Controller Technology

    Mercury Security, a provider in access control hardware and open platform solutions, has published its Trends in Access Controllers Report, based on a survey of over 450 security professionals across North America and Europe. The findings highlight the controller’s vital role in a physical access control system (PACS), where the device not only enforces access policies but also connects with readers to verify user credentials—ranging from ID badges to biometrics and mobile identities. With 72% of respondents identifying the controller as a critical or important factor in PACS design, the report underscores how the choice of controller platform has become a strategic decision for today’s security leaders. Read Now

  • Overwhelming Majority of CISOs Anticipate Surge in Cyber Attacks Over the Next Three Years

    An overwhelming 98% of chief information security officers (CISOs) expect a surge in cyber attacks over the next three years as organizations face an increasingly complex and artificial intelligence (AI)-driven digital threat landscape. This is according to new research conducted among 300 CISOs, chief information officers (CIOs), and senior IT professionals by CSC1, the leading provider of enterprise-class domain and domain name system (DNS) security. Read Now

  • ASIS International Introduces New ANSI-Approved Investigations Standard

    • Guard Services
  • Cloud Security Alliance Brings AI-Assisted Auditing to Cloud Computing

    The Cloud Security Alliance (CSA), the world’s leading organization dedicated to defining standards, certifications, and best practices to help ensure a secure cloud computing environment, today introduced an innovative addition to its suite of Security, Trust, Assurance and Risk (STAR) Registry assessments with the launch of Valid-AI-ted, an AI-powered, automated validation system. The new tool provides an automated quality check of assurance information of STAR Level 1 self-assessments using state-of-the-art LLM technology. Read Now

  • Report: Nearly 1 in 5 Healthcare Leaders Say Cyberattacks Have Impacted Patient Care

    Omega Systems, a provider of managed IT and security services, today released new research that reveals the growing impact of cybersecurity challenges on leading healthcare organizations and patient safety. According to the 2025 Healthcare IT Landscape Report, 19% of healthcare leaders say a cyberattack has already disrupted patient care, and more than half (52%) believe a fatal cyber-related incident is inevitable within the next five years. Read Now

New Products

  • ResponderLink

    ResponderLink

    Shooter Detection Systems (SDS), an Alarm.com company and a global leader in gunshot detection solutions, has introduced ResponderLink, a groundbreaking new 911 notification service for gunshot events. ResponderLink completes the circle from detection to 911 notification to first responder awareness, giving law enforcement enhanced situational intelligence they urgently need to save lives. Integrating SDS’s proven gunshot detection system with Noonlight’s SendPolice platform, ResponderLink is the first solution to automatically deliver real-time gunshot detection data to 911 call centers and first responders. When shots are detected, the 911 dispatching center, also known as the Public Safety Answering Point or PSAP, is contacted based on the gunfire location, enabling faster initiation of life-saving emergency protocols.

  • Automatic Systems V07

    Automatic Systems V07

    Automatic Systems, an industry-leading manufacturer of pedestrian and vehicle secure entrance control access systems, is pleased to announce the release of its groundbreaking V07 software. The V07 software update is designed specifically to address cybersecurity concerns and will ensure the integrity and confidentiality of Automatic Systems applications. With the new V07 software, updates will be delivered by means of an encrypted file.

  • Luma x20

    Luma x20

    Snap One has announced its popular Luma x20 family of surveillance products now offers even greater security and privacy for home and business owners across the globe by giving them full control over integrators’ system access to view live and recorded video. According to Snap One Product Manager Derek Webb, the new “customer handoff” feature provides enhanced user control after initial installation, allowing the owners to have total privacy while also making it easy to reinstate integrator access when maintenance or assistance is required. This new feature is now available to all Luma x20 users globally. “The Luma x20 family of surveillance solutions provides excellent image and audio capture, and with the new customer handoff feature, it now offers absolute privacy for camera feeds and recordings,” Webb said. “With notifications and integrator access controlled through the powerful OvrC remote system management platform, it’s easy for integrators to give their clients full control of their footage and then to get temporary access from the client for any troubleshooting needs.”