As Retailers gear up for the biggest sale day in the run up to Christmas experts are warning that cyber threats, many driven by artificial intelligence are set to ramp up.

Managed security services giant LevelBlue, has raised concerns as it published its 2025 Spotlight Report: Aligning Cyber Resilience and Business Goals in Retail.  The report comes as retailers gear up for “black Friday” traditionally one of the most active shopping days of the year.

The report explores how the retail industry is building a proactive stance in protecting itself from increasingly sophisticated attacks. Amid pressure to integrate AI-powered personalised shopping experiences, expand into third-party marketplace platforms, or pursue new revenue streams through re-commerce models, retailers face the challenge of establishing cyber resilience at a time when the threat landscape is intensifying.

The company  warned as the threat landscape rapidly evolves retailers are facing substantial attacks. The report reveals 44% of retailers say they are experiencing a significantly higher volume of attacks and 34% say their organization has suffered a breach in the past 12 months. While many retailers are aware of new threats they may face, many of them remain unprepared, especially when it comes to AI-powered attacks, deepfakes, and synthetic identity attacks. Specifically, only 25% say they are prepared for AI-powered threats, even though 45% expect them to happen, and 33% say they are prepared for deepfake attacks, even though 44% expect them to happen.

“Beyond AI and deepfakes, supply chain security remains a major challenge,” the report added. “Nearly half (47%) of executives say they have very low to moderate visibility into their software supply chain, and only 22% say that engaging with suppliers about their security credentials is a top three priority in the next 12 months.

“As a result of these increasing threats, retailers are forced to take cybersecurity more seriously and make cyber resilience a priority. 67% of executives reporting high-profile breaches have pushed cybersecurity up the C-suite agenda, and executives say that increasing boardroom engagement in cyber-resilience discussions will be a top five priority for the next 12 months.”

However the report found retailers are looking to be proactive:

• 60% of executives say their cybersecurity team is integrated with lines of business.
• 51% say that leadership roles in their organization are measured against cybersecurity performance indicators.
• 44% say they have effectively aligned business risk appetites with cybersecurity risk management.
• 40% say they have an effective company-wide cybersecurity culture.

Additionally, retailers say they are most likely to invest significantly in the following areas to prepare for evolving threats:

• Application security (66%)
• Cyber-resilience processes across the business (65%)
• Generative AI for social engineering attacks (63%)
• Machine learning for pattern matching (63%)

“With the evolution of threats today’s retailers face, cyber resilience is critical for innovation and security,” said Kory Daniels, chief security and trust officer, LevelBlue. “Retailers’ success requires the trust of consumers and suppliers, and there is still an opportunity for organisations to close critical gaps. While many organisations are taking proactive steps, challenges indicate the need for ongoing investments and continued cyber-resilient culture to be effective in an evolving threat landscape.”

Nearly half (47%) of executives say they have very low to moderate visibility into their software supply chain, and only 22% say that engaging with suppliers about their security credentials is a top three priority in the next 12 months.