🌿 Complete Cybersecurity Guide for Cannabis Dispensaries & Cultivators

Network Segmentation

• Isolate POS systems on a separate network segment from general business IT
• Use VLANs or physical network separation to contain potential breaches
• Restrict POS network access to only necessary systems and personnel

Access Control

• Implement role-based access control (RBAC) for POS users
• Require unique logins for each staff member (no shared accounts)
• Enable multi-factor authentication (MFA) for administrative access
• Regularly review and audit user permissions

System Hardening

• Disable unnecessary services and ports on POS terminals
• Keep POS software and operating systems up-to-date with security patches
• Use antivirus/anti-malware software on all POS devices
• Configure automatic updates where possible

Monitoring & Logging

• Enable comprehensive logging of all POS transactions and access attempts
• Implement real-time monitoring for suspicious activities
• Retain logs for audit and forensic purposes (recommended: 12+ months)
• Set up alerts for unusual transaction patterns or access violations

Payment Data Protection

• Never store full payment card numbers, CVV codes, or magnetic stripe data
• Use tokenization for recurring transactions or stored payment methods
• Encrypt payment data in transit and at rest
• Implement secure communication channels (TLS 1.3) for payment processing

Fraud Prevention

• Monitor for unusual transaction patterns (velocity checks, amount limits)
• Implement transaction approval workflows for high-value purchases
• Use address verification service (AVS) where applicable
• Track and investigate chargebacks promptly

Third-Party Payment Processors

• Vet payment processors thoroughly before integration
• Review security certifications and compliance frameworks
• Understand data handling practices and liability
• Maintain documentation of third-party security assessments

Data Minimization

• Collect only data necessary for business operations and compliance
• Define retention periods and delete data when no longer needed
• Document data collection purposes and legal basis

Access Controls

• Implement least-privilege access—users access only data needed for their role
• Use strong authentication (passwords + MFA) for systems containing customer data
• Monitor and log all access to sensitive customer information
• Regularly review access permissions and remove unnecessary access

Encryption

• Encrypt customer data at rest using strong algorithms (AES-256)
• Encrypt data in transit using TLS 1.3 or equivalent
• Implement proper key management procedures
• Consider database-level encryption for highly sensitive data

Privacy by Design

• Build privacy considerations into systems from the start
• Provide customers control over their data (access, correction, deletion)
• Maintain transparency about data collection and use
• Train staff on data privacy obligations and customer rights

Network Segmentation (OT/IT Separation)

• Separate operational technology (OT) networks from IT business networks
• Use firewalls and access control lists (ACLs) to control traffic between segments
• Implement jump hosts or bastion servers for administrative access

IoT Device Security

• Change default passwords on all IoT devices immediately
• Disable unused services and ports on IoT devices
• Keep firmware up-to-date with security patches
• Replace devices that no longer receive security updates

Monitoring & Detection

• Monitor IoT network traffic for anomalies
• Set up alerts for unauthorized device connections
• Maintain inventory of all IoT devices and their network locations
• Regularly scan for rogue or unauthorized devices

System Integration Security

• Use secure APIs with authentication and authorization (OAuth 2.0, API keys)
• Validate and sanitize all input data from external systems
• Encrypt data in transit between integrated systems
• Monitor API usage for unusual patterns or unauthorized access

Data Integrity

• Implement integrity checks (checksums, digital signatures) for inventory data
• Maintain audit trails of all inventory movements and modifications
• Use role-based permissions for inventory adjustments
• Regular reconciliation between physical inventory and system records

Third-Party Vendor Security

• Assess security practices of seed-to-sale platforms and vendors
• Review vendor security certifications and compliance attestations
• Include security requirements in vendor contracts
• Monitor vendor security posture ongoing

Incident Response Planning

• Develop written incident response procedures
• Define roles and responsibilities for incident response team
• Establish communication protocols (internal and external)
• Practice incident response through tabletop exercises

Backup & Recovery

• Implement automated backups of critical business data
• Store backups offline or in separate, isolated systems (air-gapped)
• Test backup restoration regularly
• Document recovery time objectives (RTO) and recovery point objectives (RPO)

Ransomware Defense

• Deploy endpoint detection and response (EDR) solutions
• Implement application whitelisting where feasible
• Disable macros and restrict script execution
• Train staff to recognize phishing and social engineering

Security System Segmentation

• Place surveillance cameras and access control on separate network segment
• Use strong authentication for video management systems (VMS)
• Encrypt video streams and stored footage
• Regularly update firmware on cameras and security devices

Access Control Systems

• Integrate access control with identity management systems
• Monitor and log all access events (successful and failed)
• Immediately revoke access for terminated employees
• Use strong credentials (no default PINs, weak passwords)