All around the globe, retailers are scrambling to put systems and processes in place to avoid the next data breach. While you might think cyber security has made great strides, businesses are more vulnerable than ever and the threat is increasing exponentially.

Internet security firm Symantec reports that the incidence of so-called "mega-breaches" – defined as those in which at least 10 million people were exposed – jumped 700% in 2013. The good guys working on cyber security measures are smart and hardworking, but the reality is they're slipping farther behind the bad guys. Laws typically follow need.

Most American retailers have point of sale exposures because they utilize magnetic swipe cards for payments. These are far more vulnerable than European "smart cards," a system towards which American retailers are headed. However, in the meantime they are vulnerable.

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