Cybersecurity in physical stores

For many years, concerns about IT security have focused almost exclusively on digital environments: websites, e-commerce platforms, cloud databases, etc. However, the modern retail ecosystem also includes a physical component that is becoming increasingly digitized. In physical stores, devices like payment terminals (POS devices) and Wi-Fi networks play a key role in both the customer experience and operational efficiency. But just like in the online world, these systems can also become targets for cybercriminals and their attacks.

How secure are payment terminals?

The payment terminal, also known as a POS (Point of Sale) terminal, has become the epicenter of in-person transactions. Its use allows for payments via debit and credit cards, mobile devices, and in some cases, even cryptocurrencies. What many fail to consider is that, when processing these payments, the device handles extremely sensitive data: card numbers, CVV codes, EMV chip information, names, and other credentials linked to bank accounts.

Although most modern terminals are designed to comply with Payment Card Industry Data Security Standard (PCI DSS), their actual level of security heavily depends on how they are implemented, configured, and managed within the store's infrastructure.

What are the risks?

One of the most important protection mechanisms in these devices is Point-to-Point Encryption (P2PE). This system ensures that card data is encrypted the moment it is inserted or swiped and is only decrypted once it reaches the payment service provider. This greatly reduces the risk of interception, even if an attacker manages to compromise the network through which the information travels.

However, there are multiple attack vectors. One of the most common is skimming, which involves installing an external device that captures magnetic stripe data without visibly altering the terminal. While this type of attack has declined with the adoption of chip cards, it remains viable on poorly secured or outdated devices. Another risk is malware injection into the terminal's firmware, which can happen if the device does not receive regular security updates or is physically tampered with by unauthorized personnel.

Even simply connecting the terminal to a shared, unsegmented network can open a door to attackers looking to intercept communications between the terminal and the payment provider. In fact, there have been documented cases in which cybercriminal groups exploited vulnerabilities in poorly segmented internal networks to distribute spyware across multiple terminals simultaneously, silently and persistently harvesting large volumes of banking information.

Cybersecurity tips to protect payment terminals

• Use certified models with Point-to-Point Encryption (P2PE).
  
  
• Physically inspect devices daily for signs of tampering.
  
  
• Regularly update firmware with the manufacturer's security patches.
  
  
• Restrict physical access to authorized personnel only.
  
  
• Segment the network: payment terminals should operate on a VLAN isolated from other systems.
  
  

Cyber Risks of Wi-Fi Networks in Physical Stores

The other major exposure point in physical stores is the Wi-Fi network. It’s common for both employees and customers to use wireless connections within the store. Offering free Wi-Fi has become a business differentiator, but few stores implement this service with the necessary security measures.

The risk begins when the guest wireless network is not properly isolated from the internal network. In many cases, the router or access point simply creates an additional network with a different password, but without any real separation. This means an attacker connected as a “guest” could scan the network for internal devices such as security cameras, POS terminals, or even local servers.

Additionally, misconfigured Wi-Fi networks are susceptible to Man-in-the-Middle (MitM) attacks. In these scenarios, an attacker can intercept communications over the network, capturing sensitive information like login credentials, transaction data, or internal communications between devices. This kind of attack can even be carried out on networks protected by outdated protocols like WPA or WEP, which can be broken in minutes using freely available tools online.

Another latent threat is the creation of fake access points, known as “Rogue APs.” An attacker can set up a Wi-Fi network with the same name (SSID) as the store’s legitimate one. When customer or employee devices connect to this network unknowingly, the attacker can capture all traffic that passes through it. This method is highly effective and difficult for the average user to detect. It has been responsible for numerous cases of personal data theft in public and commercial settings.

How to Improve Cybersecurity in Physical Stores

Protecting a physical store from digital threats is not just about technology—it also requires a shift in mindset. Many business owners still believe that cyberattacks are limited to large companies or online platforms, when in reality, small businesses are increasingly being targeted.

To reduce these risks, the first step is to perform a comprehensive audit of the store’s IT infrastructure. This includes checking how payment terminals are connected, what kind of network they use, whether they are up to date, and whether there are any unauthorized or unnecessary access points. The same goes for the Wi-Fi network: it’s essential to segment it into at least two independent networks (one for customers and one for internal operations) and to use modern encryption protocols like WPA3.

In addition, keeping all devices updated is crucial. This includes not only payment terminals but also routers, access points, IP cameras, inventory systems, and any device connected to the internet. Many of these run outdated firmware versions with known and exploitable vulnerabilities.

Staff training also plays a critical role. Employees should know how to identify signs of tampering on terminals, how to respond to unusual network behavior, and have clear procedures in case of a security incident. Internal awareness is one of the best defenses against cyber threats.

In a world where the physical and digital are increasingly interconnected, cybersecurity must be seen as an essential part of any store, no matter how small. Payment terminals and Wi-Fi networks, if not properly secured, become vulnerable points that can compromise not only the business’s finances but also customer privacy and trust.

At ESED, we offer auditing, risk analysis, and infrastructure protection solutions specifically designed for physical businesses. If you want to make sure your terminals and networks are protected against current threats, contact us today and let’s talk about how we can help you shield your store from the digital world.