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Why newsagents can’t afford to run old software anymore

Software security has changed more in the last eighteen months than in the previous five years, and small retailers, like newsagents, are squarely in the firing line.

Newsagents handle sensitive data: EFTPOS transactions, lottery and gift card sales, loyalty accounts, customer details. Running old software is a commercial risk to your business and to the people who shop with you.

What’s changed

Cyber criminals have worked out that small businesses are easier targets than large ones, and just as valuable.

According to the Australian Signals Directorate’s Annual Cyber Threat Report for 2024–25, the average cost of a cyber incident to a small business rose 14% to $56,600. The ACSC’s cyber security hotline took more than 42,500 calls that year, up 16% on the year before, and the agency issued over 1,700 warnings about malicious activity targeting Australian organisations, an 83% jump. Read the full report.

Payment security rules have tightened. PCI DSS 4.0, the standard that governs how businesses handle card payments, made a set of new requirements mandatory from April 2025, including multi-factor authentication for anyone accessing systems that touch card data. If your POS provider hasn’t talked to you about this, it’s worth asking.

Attackers are going after software supply chains too. Industry research on retail breaches found close to a third involved a compromised third-party vendor rather than a direct attack on the retailer, nearly double the rate from the year before. A weakness in a POS provider, a payments processor, or an IT support company can expose every retailer connected to them.

And a lot of small business software is older than it should be. Security researchers still find point-of-sale systems running operating systems that stopped receiving security patches years ago, because “it still works” felt like a good enough reason to leave it alone. Unsupported software is an open door. Nobody is watching for weaknesses in a system the vendor stopped maintaining, and attackers know it.

The businesses ransomware groups target most aren’t the ones with the least valuable data. They’re the ones with the least resistance.

Why this matters more for newsagents specifically

Most newsagents have grown beyond newspapers and magazines. Gift cards, loyalty programs, mobile recharge, lottery accounts and card payments all run through the same till, and all of it depends on software that’s connected to the internet, connected to your bank, and often connected to a support provider with remote access to your systems. That’s real exposure. It’s a profile attackers look for: valuable transactions, limited in-house IT support, and a temptation to delay updates because the shop is busy and the software “still works fine.”

What keeping software up to date means

Keeping software current is more than clicking “update” when a pop-up appears. A few questions worth putting to your POS provider or IT support:

  • Is your point-of-sale software still actively supported, with regular security patches, or is it running on an older version the vendor no longer maintains?
  • Is multi-factor authentication switched on for anyone who can access your systems remotely, including your support provider?
  • How quickly does your provider apply security patches after they’re released, and do they tell you when they do?
  • Are your backups tested, and stored somewhere separate from your main system, so a ransomware attack on your till doesn’t take your records with it?

A short checklist for your shop

None of this requires becoming a cyber security expert. A few habits make most of the difference:

  • Turn on multi-factor authentication on every account that offers it, not just your bank login.
  • Keep the operating system and browser on any device connected to your POS current.
  • Treat unexpected “urgent” emails about supplier invoices or EFTPOS settings with suspicion, and verify by phone before acting.
  • Back up your data regularly, and keep at least one copy separate from your main system.

Treat your POS software the way you’d treat your shop’s front door: locked, current, and not something you put off dealing with because business is busy. The retailers who get hit hardest are usually the ones who assumed it wouldn’t happen to a shop their size.

Now, here are some valuable sources:

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Newsagency management

The sale that walked out the door

A customer walks into a local shop looking for NeeDoh, one of the best-known names in sensory play. Out of stock. The assistant holds up a generic off-brand substitute when asked of they have NeeDoh.

No but, we have these off-brand products.

Right next to that substitute, on the same shelf, sits a full range of Crazy Aaron’s Putty, a premium brand that does exactly what Nee-Doh does. They don’t point it out. The don’t ask what the customer actually wants, or offers to let them try it.

If you’d rather head about this, here’s a video that I made today reflecting on the experience.

The shopper turns and leaves with nothing

The shop has lost a sale it didn’t need to lose.

Why how we engage matters

Shoppers rarely walk into a local store for one planned purchase. They browse, and they react to whatever catches the eye. People buy sensory and novelty lines for all sorts of reasons: arthritis relief, sensory needs, or just something to fidget with at a desk.

That’s exactly why these products deserve better than a spot near the counter as an afterthought. Stock the brands people recognise, know the range, and be able to talk about it like you mean it. That’s what turns a browser into a buyer.

What went wrong

A team that doesn’t know its stock, its trends, or its alternatives well enough to mention them naturally will lose sales like this one and never notice it happened.

An out-of-stock answer with no real alternative can be enough to lose a customer for good, along with every repeat visit and word-of-mouth recommendation that would have followed.

Independent retailers compete on service. Every interaction either builds the relationship or ends it, and there’s rarely a moment in between.

What good service looks like instead

It doesn’t take much to turn this around: a mention of the putty on the same shelf, a question about what the customer actually needs it for, an offer to try before they buy, or just a heads-up that new stock is on its way.

The takeaway

Train every team member to treat a stock shortage as a chance to offer something else, not a dead end.

Independent retailers can’t compete with the majors on price, but they can out-curate and out-serve them, provided staff know the range well enough to make a recommendation without having to think about it.

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5 ways your newsagency can profitably deal with the award wage increase, a rent increase and the surcharge ban

Award wages went up 4.75% on 1 July. Rent is tracking 4–5% higher for most. From 1 October, the RBA surcharge ban means card fees you were recovering from customers need to be absorbed or built into prices. The combined hit is around 1.5% of turnover for a typical newsagency — real money when margins are already thin.

Here are five ways to recover some of it, using tools already in  newsagency software.

1. Reprice the stock you control

Magazines and newspapers are priced for you. Stationery, gifts, art supplies and general merchandise are not. If you have not looked at those prices recently, there is a reasonable chance you are undercharging.

A smart stock manager lets you update prices across a category in one pass, in bulk, accurately, safely. Some newsagencies mark up stationery at 100%; others run 125% and see no drop in sales. Worth checking where you sit.

A small increase of 1% across what you control might get you nicely into positive ground.

2. Stop entering invoices by hand

Five to ten hours a week on manual invoice entry is a full day of wages, every week, on admin. AI invoice arrivals imports supplier invoices directly — no typing, fewer errors, no chasing up mistakes.

Those hours go back to the counter or to something that actually earns revenue.

3. Clear dead stock

Stock that has not sold in six months typically accounts for 10–15% of total inventory value. It is taking up shelf space, paying rent per square metre, and returning nothing.

The software flags these lines. Get them out through clearance, supplier return or bundling, and the capital goes back into stock that moves.

4. Find your stockouts

Missed sales are invisible unless you look for them. The insights dashboard makes them visible: it shows the dollar value of sales lost because a product was not in stock when a customer wanted it.

Match that with automated reordering and the lines that drive your sales stay on the shelf.

5. Use theft detection tools

Theft typically accounts for 3% – 5% of newsagency turnover. Most of the volume is customer theft; the highest individual losses tend to be internal.

The audit log and early detection tools in the software catch discrepancies well before a stocktake would. Earlier detection means a smaller problem to deal with.


Contact the Tower Systems team at sales@towersystems.com.au.

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Newsagency management