By PYMNTS  |  January 9, 2025

Digital transformation is a double-edged sword.

From cloud computing and Internet of Things (IoT) to artificial intelligence-driven analytics and real-time payment systems, the connectivity ushered in by technological advances has unlocked opportunities for innovation and growth.

The more connected the economy becomes, however, the more vulnerabilities there are for fraudsters to exploit.

This makes cybersecurity increasingly crucial, as evidenced by the White House deploying a Cyber Trust Mark for connected consumer devices Tuesday (Jan. 7). The initiative has been supported by major manufacturers and retailers, including Amazon, Google, Best Buy, Samsung and LG Electronics. It’s set to be administered by the Federal Communications Commission and is based on security features and criteria approved by the U.S. National Institute of Standards and Technology.

The interconnected nature of consumer and business technologies means that a breach in one area can have cascading effects across an organization or household.

“The White House launched this bipartisan effort to educate American consumers and give them an easy way to assess the cybersecurity of such products, as well as incentivize companies to produce more cybersecure devise, much as Energy Star labels did for energy efficiency,” the U.S. executive branch said in a statement.

Read also: What 2024’s Worst Cyberattacks Say About Security in 2025

Cyber Threats in a Hyperconnected World

The economy’s connective tissue is increasingly digital, so the question is not whether vulnerabilities will arise but how prepared organizations will be to address them.

The PYMNTS Intelligence report “Multitasking Consumers Want to Shop — and Work — at the Same Time” found that the average consumer now owns six connected devices, a number that climbs to seven among millennials and bridge millennials.

To comply with the new, voluntary standard, devices may need embedded protections like secure software updates, encryption and default password protocols. For companies that have historically prioritized speed-to-market over security, this may necessitate a redesign of existing workflows.

At the same time, building cybersecurity features into devices from the ground up could increase production costs. Smaller manufacturers or startups might find these requirements particularly challenging due to resource constraints. Separately, ensuring that components sourced from third-party suppliers also meet the cyber standards could further complicate manufacturing processes, but also aligns with the broader marketplace trend of emphasizing security across supply chains.

For the initiative to succeed, consumers must recognize, understand and prioritize the Cyber Trust Mark. However, it isn’t just consumer-facing manufacturers that need to take steps in 2025 to prioritize cybersecurity. The business landscape is also undergoing a digital transformation.

This sea of technological change could have unanticipated consequences if not navigated adroitly.

AI-Powered Cybersecurity Reshapes Business Resiliency

For B2B enterprises, where sensitive financial data, proprietary information and critical supply chain operations are at stake, failing to prioritize cybersecurity could lead to devastating consequences — not only in terms of financial loss but also reputational damage and legal repercussions.

The democratization of technologies like AI has made complex tools available to virtually anyone, making it easier for cybercriminals to carry out attacks, Finexio Chief Strategy Officer Chris Wyatt told PYMNTS in an interview posted in August.

But the use of AI isn’t solely reserved for fraudsters. The PYMNTS Intelligence report “The AI MonitorEdge Report: COOs Leverage GenAI to Reduce Data Security Losses” showed that 55% of companies employ AI-powered cybersecurity measures. The report, based on an August survey, marked a sharp increase from the 17% of chief operating officers who reported using AI-driven security tools in May.

In interviews for the “What’s Next in Payments” series, a panel of executives explained to PYMNTS that a multilayered security strategy, also known as defense in depth, reduces risks at various levels.

“The surge in cyberattacks targeting enterprise operations highlights a shift in how hackers approach their targets,” PYMNTS wrote last month. “Rather than casting wide nets through ransomware campaigns, cybercriminal groups are focusing on critical infrastructure that serves as the backbone of corporate data exchange.”