The energy sector is rapidly evolving from centralized, monolithic power plants to a highly distributed, digitally interconnected system. Smart meters, distributed energy resources (DER), remote terminal units (RTUs), and industrial control systems (ICS) all contribute to a complex mesh of devices operating at the network edge.
At first glance, the point-of-sale (POS) terminals used by retailers might seem unrelated to energy infrastructure. However, the cybersecurity challenges faced by POS systems in protecting sensitive financial data offer invaluable lessons for utilities tasked with securing critical infrastructure.
POS terminals, once simple card readers, have evolved into sophisticated networked computers that are now constantly targeted by cybercriminals for data theft and financial fraud. Utilities’ edge devices are evolving along a similar trajectory, becoming more connected and more vulnerable.
This article examines the parallels between these two worlds and outlines how utilities can leverage best practices from the retail payment industry to enhance cyber resilience at the edge of the energy grid.
The Expanding Attack Surface: Why Edge Devices Are a Growing Concern
In the retail sector, POS terminals handle highly sensitive data, credit card numbers, personal information, and transaction histories, making them attractive targets. Similarly, energy edge devices collect and transmit operational data critical to grid stability and reliability.
Attackers understand that compromising edge devices often provides a stepping stone into deeper networks. In retail, breaches like the Target hack (2013) exploited vendor access through POS systems to infiltrate corporate IT networks. In energy, attackers target RTUs or communication gateways to disrupt grid operations or cause physical damage.
Utilities must recognize that edge devices are not just endpoints; they are potential pivot points that can compromise entire control systems.
Lessons from POS Security: A Framework for Energy Edge Resilience
1. Treat Edge Devices as High-Value Assets
Historically, many energy organizations treated edge equipment, smart meters, and remote sensors as low-value devices with minimal security controls. The retail industry learned the hard way that any connected endpoint can be a vector for attack.
Utilities should start by conducting a comprehensive asset inventory of all field devices with network connectivity. Each device’s risk profile should inform the security controls applied.
2. Zero Trust Is Not Just a Buzzword
The zero-trust security model, where no device or user is automatically trusted, has gained traction in IT. Retail POS systems now authenticate at every interaction to reduce risk.
In energy, zero trust means:
Mutual authentication between edge devices and control centers
Strict network segmentation that isolates field devices
Least privilege access policies to minimize lateral movement potential
3. End-to-End Encryption from Device to Control Center
Payment systems have implemented end-to-end encryption (E2EE) to secure card data from swipe to processor, preventing interception or malware scraping.
Energy utilities should apply the same principle:
Encrypt telemetry at the point of data generation (e.g., meters or RTUs)
Use authenticated encryption protocols appropriate for constrained devices, such as AES-GCM or lightweight ciphers for IoT
Avoid transmitting sensitive data in clear text, even on private networks
4. Harden Physical Security and Device Integrity
POS terminals face physical threats like skimming, tampering, or firmware replacement. Similarly, remote energy devices are often in unsecured locations vulnerable to physical attacks.
Utilities can improve resilience by:
Deploying tamper-evident seals and enclosures
Implementing firmware signing and integrity verification to prevent unauthorized updates
Using remote management capabilities to disable or wipe compromised devices
5. Automate Patch and Firmware Management
Unpatched systems remain one of the most common cyber risk factors. The retail sector has accelerated automated patch deployment for POS software.
Utilities should develop robust patch management programs for field devices:
Schedule regular updates with minimal disruption
Use rollback mechanisms in case updates cause issues
Test patches extensively in staging environments before wide release
6. Behavioral Monitoring and Anomaly Detection
Retail cybersecurity teams increasingly use AI and machine learning to detect unusual patterns indicative of compromise in POS systems.
Energy operations centers can adopt similar approaches:
Analyze device and network telemetry for anomalies, such as irregular command sequences or unexpected data flows
Combine logs from multiple sources to build a comprehensive threat picture
Integrate OT-specific threat intelligence to tune detection models
7. Secure the Supply Chain and Third-Party Vendors
Just as compromised POS devices can come from insecure vendors, energy organizations must scrutinize their supply chains. Third-party hardware and software may introduce vulnerabilities.
Best practices include:
Performing thorough security assessments of vendors
Requiring software bill of materials (SBOMs) for transparency
Limiting and monitoring third-party network access
Real-World Case Study: Cross-Sector Incident Highlights
In 2023, a cyberattack on a major logistics and energy services company began by compromising mobile POS-like terminals used for inventory and transaction processing in warehouses. The attackers escalated privileges, eventually disrupting critical heating and power control systems at multiple sites.
This incident underscores the convergence of IT and OT threats, demonstrating that attackers will exploit the weakest link regardless of industry. Utilities are ignoring lessons from retail POS security risk, similar breaches.
The Road Ahead: Integrating Retail Best Practices into Energy Cybersecurity
The energy grid of the future will be more decentralized and connected than ever. With electric vehicle charging stations, rooftop solar inverters, and smart appliances all communicating dynamically, the attack surface at the edge will only grow.
Utilities must move beyond reactive patchwork defenses and embrace proactive, integrated security architectures inspired by sectors like retail payments that have faced and adapted to similar challenges.
Conclusion
The cyber threats targeting POS terminals today mirror the challenges facing energy infrastructure tomorrow. By treating edge devices with the same respect, urgency, and security rigor, utilities can reduce risk, improve resilience, and protect the nation’s critical energy systems.
Learning from the retail sector’s successes and failures is not just advisable, it’s essential for safeguarding our energy future.