Consumer products cybersecurity: Protecting data, building consumer confidence

As retailers and other consumer products companies increasingly rely on technology to enhance customer experiences and streamline operations, they must also contend with sophisticated cyberthreats that can compromise sensitive data and disrupt business operations.

Threats and regulatory concerns

One of the most significant threats facing many consumer products companies today is credential theft. Cybercriminals target consumer login information, such as usernames and passwords, to gain unauthorized access to accounts. In addition, ransomware attacks continue to be a major concern for businesses.

According to the RSM US Middle Market Business Index Special Report: Cybersecurity 2025, 26% of survey respondents experienced at least one ransomware attack or demand in the last year, with larger companies more at risk. Ransomware can lock down critical systems and demand hefty ransoms for their release, causing significant financial and operational damage.

“Protecting consumer data remains a top priority for retailers and other consumer products businesses,” says Peter Ramer, a consumer products senior analyst at RSM US LLP. “With the increasing use of artificial intelligence and other advanced technologies, businesses must ensure that their data governance practices are robust and compliant with regulatory requirements. Failure to secure customer data can lead to severe reputational damage and legal consequences.”

The rise of AI has introduced new challenges in the cybersecurity landscape. According to Ramer, while AI can enhance threat detection and response capabilities, it can also be exploited by cybercriminals. AI-driven attacks, such as using AI to predict passwords, have become more prevalent, making it crucial for businesses to stay ahead of these emerging threats.

Consumer products businesses must also navigate a complex web of regulatory requirements to ensure the security of their operations and customer data.

One area of concern is the regulation of platforms for international shopping and social media. Some of these platforms have been associated with consumer fraud, Ramer says, and resulting regulatory actions could affect the retail landscape. Retailers and other consumer products companies must stay informed about evolving regulations and adapt their practices accordingly.

Likewise, he adds, consumer products businesses often rely on third-party vendors for various technology solutions, such as websites, point-of-sale systems and data warehouses. It is essential for companies to assess the cybersecurity measures implemented by these vendors to mitigate potential risks. Ensuring that third-party vendors have robust security protocols in place can help protect sensitive data and maintain customer trust.

Key considerations

To stay ahead of cyberthreats, businesses should adopt a comprehensive cybersecurity approach. Here are some best practices to consider:

• Invest in advanced threat detection: Leveraging AI and machine learning technologies can enhance threat detection capabilities. These technologies can identify anomalies and potential threats in real time, allowing businesses to respond swiftly and effectively. 
• Implement strong data governance: Businesses must prioritize data governance to protect customer data. Effective governance includes ensuring compliance with regulatory requirements and implementing robust security measures. 
• Educate employees and customers: Cybersecurity awareness is crucial for both employees and customers. Companies should provide regular training to employees and educate customers on how to protect their information when shopping online. 
• Conduct regular security audits: Regular security audits can help identify vulnerabilities and ensure that security measures are up to date.
• Develop a response plan: Companies should establish protocols for responding to data breaches, ransomware attacks and other cyberthreats to minimize disruption and protect customer data.

The takeaway

Implementing robust cybersecurity measures is crucial for consumer products companies, not only to protect sensitive data but also to foster growth and build trust with consumers. By safeguarding customer information and ensuring compliance with regulatory requirements, companies can enhance their reputation and reliability. This, in turn, helps to attract and retain customers, as consumers are more likely to engage with and remain loyal to a brand they trust.

Additionally, a strong cybersecurity posture can prevent costly disruptions and financial losses, allowing businesses to focus on innovation and expansion. Ultimately, prioritizing cybersecurity is a key factor in driving sustainable growth and maintaining a competitive edge in the market.