IoT smart retail: Security issues and solutions
IOT SMART RETAIL: SECURITY ISSUES AND SOLUTIONS
SVTH: Hoàng Nguyễn Thùy Dương,
Đào Đức Giang
GVHD: ThS Hoàng Thị Kiꢀu Hoa
Tó m tắt - Với sự tiến bộ của cô ng nghệ, Internet of Things đã trở thành một phần quan trọng
trong cuộc sống hàng ngày của chúng ta. Nó đã mang lại những ảnh hưởng khô ng ngờ, tiềm năng và
sự phá t triển cho xã hội loài người. IoT cho phé p cá c thiết bị đeo, thiết bị gia dụng và phần mềm chia
sẻ và giao tiếp trong một mạng bằng Internet. Do thực tế là tất cả dữ liệu cá nhâ n của người dùng sẽ
được tải lên Internet, chúng tô i phải theo dõ i cá c vấn đề bảo mật do IoT gâ y ra. Trong bài bá o này,
chúng tô i sẽ bắt đầu bằng việc giới thiệu định nghĩa về Internet of Things sau đó tiếp tục cung cấp
thô ng tin về những thá ch thức liên quan đến bảo mật. Trên cơ sở đó, một số giải phá p sẽ được giải
quyết khi kết thúc nghiên cứu
Abstract - With the advancement of technology, the Internet of Things has become a major part
in our daily life. It brought up unbelievable influences, potential and growth to human’s society. IoT
allows wearable devices, home appliances and software to share and communicate throughout a
network using the Internet. Due to the fact that all of a user's private data will be uploaded on the
Internet, we must keep an eye on security problems caused by IoT. In this paper, we will begin with
introducing the Internet of Things definition then continue with providing information of security related
challenges. On the basis of that, several resolutions will be addressed at the end of the research.
Key words: Internet of Things, Security problems, Smart Retail
I. Introduction
The Internet of Things (IoT) has gained wide acceptance and popularity among citizens
with regards to smart devices and high-speed networks. Specifically, “things” will be
connected in a private or public network so that users can easily control IoT devices from
distance to undertake desired tasks. With the improvement of modern technologies such as
incorporation of cognitive radio-based networks to combat underuse of frequency spectrum,
the growth of the Internet of things keeps increasing rapidly (Khan & Salah, 2018). In
consequence, new issues related to security of IoT are rising while traditional problems are
becoming more challenging. This not only opens up opportunities for cyber-attacks and
illegal installation but also affects companies, organizations or even individuals (Zhang, et al.,
2014). Applying this into smart retail - one of IoT applications - hackers can effortlessly steal
consumer’s information without their awareness. Moreover, in the context of the outbreak of
one of the most lethal pandemics, Corona Virus disease, also known as COVID-19, has
engulfed the whole planet with its extreme causes, causing the globe to stand at ground zero
in terms of population and business transactions, putting a cap on cash flows and the
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currencies of the nations. Previously, shopping meant buying completed products from stores;
now, with online ordering and creative retailing, smart retail has become one of the fastest
growing industries. Smart retail was rising at a healthy rate prior to the pandemic due to its
features of swift and hassle-free operations; but, after the pandemic's outburst, the penetration
rate in the smart retail industry has seen a steep increase. This is an opportunity and also a
threat for every nation, especially the developing such as Vietnam since the technologies has
some difficulties to adapt to the significant movement of the market and environment.
Therefore, in this research paper, we will take an insight into diverse security challenges
occurring in the retail industry, then represent suitable solutions with the aim to resolve these
stumbling blocks.
II. The iot and smart retail definition
1. The Internet of Things (IoT)
The Internet of Things, generally known as IoT, includes everything requiring the use
of the Internet (Burgess, 2018). Matthew Evans, the IoT program head at techUK stated that
"Simply, the Internet of Things is made up of devices – from simple sensors to smartphones
and wearables – connected together".
In particular, the definition of this term varies on different people but it can be
considered as an automated network to collect information, analyze it and turn that into
actions, which helps people to gain benefits (Hassan, Ali, & Badawy, 2015). Internet of
Things allows users to create their own private communicating systems for numerous tasks.
From this point of view, IoT will be a functional tool helping our society become a connected
world - Caroline Gorski (Burgess, 2018).
Up to this point, everything people see or use can be the application of the Internet of
Things ranging from kitchen appliances, cars, thermostats to mobile devices using the Internet
including phones, tablets, watches, and the list goes on. The cloud, big data analysis coupled
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with low-cost computation has enabled and disseminate physical information in real time.
This means that the world where we are living in can easily comes to the state of globalization
without paying too much money.
The existence of the Internet of Things has brought up the opportunity for not only
money-saving connecting solutions but also the development of cloud computing and
analytics software. According to Oracle, both businesses and customers can obtain the
technology and manage services they require simultaneously without needing to keep an eye
on the whole system. Besides, the wealth of data in the cloud and analytics system also help
companies to collect insights more quickly than they could before.
2. Smart Retail (Retail 4.0)
Smart Retail, or Retail 4.0, is the latest updated version of the retail industry happening
around 1995 (Jayaram, 2017). It can be defined by the action of retailers using a designed set
of technologies so that they can bring consumers with greater, faster, and safer experience
while shopping (Jackowski, 2020). With changes in consumer behavior as well as the fast-
paced living style, retailers are now experimenting with Multichannel Marketing plans (Desai,
Potia, & Salsberg, 2013). Instead of following only one specific platform, companies would
prefer to promote their products through social media, websites, stores and so on
simultaneously. It is made possible with the help of various IoT Technology such as RFID,
Beacons, Bluetooth, and wireless connecting protocols. Besides, advances in self-checkout,
digital wallet, the customer resource management system, or dynamic pricing are also
resulting of smart retail (Jayaram, 2017). The combination of these technologies would be an
advantageous point towards retailers in capturing excellent values provided for their
consumers.
3. How IoT innovates the Retail Industry
Changes in IoT will give retailers opportunities to expand the revenue throughout three
main categories: customer experience, supply chain and new channel and revenue streams.
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First of all, based on the enormous amount of data produced by mentioned gadgets, firms
would be able to improve their in-store experience. For instance, Hugo Boss has installed a
set of heat sensors in its stores in order to track customer’s movements with the aim to
identify favored areas. Moving on to the supply chain, both the managers and even customers
can easily keep an eye on their products. RFID technologies will help them to track whether a
custom order is in production or being delivered. Last but not least, the true power of the
Internet of Things lies in helping retailers to recreate their channels, or in several cases, build
a new one. The well-known phenomenon, the Iris platform, introduced by Lowe’s can
communicate with almost every household device using only Wi-Fi, ZigBee, or Z-wave.
Connected platforms would present retailers a direct way to generate profits using collected
data of customers (Gregory, 2015).
III. Crrent security threats in iot smart retail
1. Data Violation or Data Thefts
As the Internet of Things (IoT) for both enterprises and customers is becoming a greater
part of daily life, the discussion has turned to how customer data is protected in the IoT
applications, especially for smart retail. As a result, it is crucial to understand why everyone
needs to protect personal data or information in electronic storefronts. It can be witnessed that
the Internet space has significantly increased and reached giant traffic, and we are no longer
unfamiliar with online shopping or smart retail such as Amazon, eBay, or Taobao which are
all the applications in the business of IoT. Today, with the retail stores having adopted the
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involvement of peripheral elements, intermediaries service or web extensions to their
traditional network, the extent of security risk rises, Parkhi – the principal analyst at Insight
Research explained (Rahul, 2017). Safety protocols such as authentication, entry verification,
and authorization are often not practiced with regard to IoT-enabled applications. Owing to
the exposure rich customer data provided and the amount of trade involved, electronic
storefronts are highly enticing targets for hackers. A plethora of sensitive and private data is
managed by IoT programs. In transit, data is much more prone to attacks than restful data, and
there is a lot of data flow in IoT applications (Hassija, Chamola, Saxena, & SikDar, 2019).
The assault on the credit card database of a large North American retailer due to a suspected
violation of certain peripheral login credentials is a case in point. Indeed, the ultimate aim of
the attack is to exploit data for unauthorized use or use without authorization.
As claimed by Verizon’s 2016 Data Breach Investigations Report, 93 percent of data
breach cases, hackers have successfully stolen within a minute or under. However, it takes up
to more than a week for 80 percent of businesses to realize the damage. It is significantly
hazardous for entrepreneurs when data breaches happen. The reputation of the company may
be vulnerable under these attacks. The company does not wish the fundamental emails which
contain secret information or important content are leaked, for one thing. They need these
emails to stay confidential in most situations. Customers, though, often respect their
anonymity, and consumer payment information is frequently included in abuses. An
organization with a history of shoddy data protection would be reluctant to trust future leads.
As pranksters, some hackers fancy themselves and it makes the next business’s concern
outcome of data violation which is online vandalism. In these circumstances, a security
violation on the website can only lead to a few interface changes. Although this sounds
relatively harmless, a lot of damage will potentially be caused. It is harder to detect slight
modifications, however, the consequence still interrupts the business.
To prevent the potential risk, many regulations are set, however, there is only one main
purpose that is to make sure the data in the IoT environment is used properly. The General
Data Protection Regulation (GDPR) went into practice in the European Union in May 2018.
Although the GDPR is enforceable only within the EU, where a company will be fined up to
4% of its worldwide sales for breaching the law, the borderless existence of the World Wide
Web has forced several internet-based businesses to amend their terms and conditions to
conform with these new laws and to deploy tools for consumers to access their personal data
profiles.
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2. DdoS Attacks
Any public service, such as mobile device APIs, web sites, e-mail services, or DNS
services, or in short IoT-related services, will fall prey to a DDoS attack. DDoS (Distributed
Denial of Service) and DOS (Denial of Service) attacks are targeted at undermining the
website and impacting total revenue (Razzak, 2020). During the attack, the affected service
becomes entirely disabled, which ensures that all smartphone apps, web sites, or email
systems will be inaccessible. Since e-commerce activities of Smart Retail systems have a
consistent bond with these services, the company may fall into a crisis. It can be claimed that
this form of attack introduces itself as a consequence of account enumeration, absence of
account lockout, or defective account credentials. In this case, the user interface is accessed
by an attacker using weak authentication mechanisms (either catching plain-text passwords or
enumerating accounts). The assault undermines the credibility of the device and may lead to
resources being refused (Tweneboah-Koduah, Skouby, & Tadayoni, 2017).
It is fairly inexpensive to carry out a DDoS, but the impact it has on business can be
immense. On the dark web, a mid-sized DDoS that lasts for a whole day can be acquired for
about $500 - this amount pales due to the harm done to a business provider that discovers that
24 hours of service is inaccessible. This unavailability of service harms the image of the
company, in addition to immediate financial losses, and may have a much more significant
impact in the long term (Kohout, 2016).
There are many ways to defend against DDoS, but there are limitations to any solution.
A very fast Internet connection should, technically, be used to tackle a volumetric form of
attack. Application servers, however, do not evolve fast enough to accommodate a large
number of hacker-generated links. The second technique is a deep packet analysis conducted
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between the device and the data center to check for malicious patterns within the data flow
(application logic DoS). Nevertheless, the speed of the machines is not guaranteed that they
do not become bottlenecks (Kohout, 2016).
IV. Solutions
1. The Solutions
Connecting to the Internet often involves communicating with possible cyber-attacks.
Internet-enabled trade is now a priority for cybercriminals. The growth of the IoT market
raises the number of possible threats that could impact the productivity and protection of
devices and thus our privacy (Tawalbeh, Mubeidat, Tawalbeh, & Quwaider, 2020). With
more sophisticated hackers and applications, it should not come as a surprise that some
additional protection may be needed for your Smart Retail system. Several large companies
have recently suffered security breaches that have led to the leakage of their consumer data,
especially credit card information, or it may come as an attack aiming at the website.
The initial action can be taken such as authorities’ efforts to introduce laws or
regulations. However, with more technologies and the development of IoT, there are many
ways to break into the system. Hence, further security performances needed to be done to
make the e-commerce environment safe. It can be considered as self-defense, which means
such actions might be taken before and to prevent rather than to solve the issues.
Deployment of encryption techniques: strong and up-to-date encryption techniques will
improve cybersecurity. The encryption protocol is applied in both cloud and application
contexts. Thus, hackers could not grasp and misuse unreadable secure data formats
(Tawalbeh, Mubeidat, Tawalbeh, & Quwaider, 2020).
Increase the frequency of updates: software vendors should create minor patches rather
than major updates. Such a technique may reduce the difficulty of patch installation. In
addition, regular patches can help consumers escape cyber-attacks from several outlets
(Tawalbeh, Mubeidat, Tawalbeh, & Quwaider, 2020).
Human Resources must be the most oriented factor to address security threats in IoT
Smart Retail in developing countries such as Vietnam (Miazi, Erasmus, Razzaque, Zennaro,
& Bagula, 2016). In order to have a highly skilled workforce, local authorities should pay
attention to train IoT engineers and scientists. So final consumers will benefit from this new
technology without fear of being attacked. In addition, policymakers need to consider what
advantages they can obtain from the abundance of data from IoT networks, especially the
growth of Smart Retail.
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2. The future of the Retail Industry through IoT
For most retailers, as consumers become more connected to technology, it is clear that
the retail landscape will continue to evolve towards IoT technologies in the next decade and
beyond. This makes it a must to have a long-term IoT strategy. The digital consumer of the
future will probably expect their shopping to be an engaging journey enabled by their devices,
even demand. These and other novel scenarios will include the future of shopping. Consumer
engagement will continue to drive greater personalization and contextualization of
experiences as part of the digital transformation. Undoubtedly, several technologies will be
developed and the wireless connection will reach a peak. As a result, along with that
technology growth, we should take action and research to protect a secure IoT Smart Retail
environment (Ghasemi, 2017).
V. Conclusion
The rise in popularity of the Internet of Things in Smart Retail as well as its complexity
makes it much more difficult for retailers to prevent the damages. For this reason, this article
will address both the problems and ways to deal with them. Several issues specifically in
Vietnam are also discussed.
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