Do you know that e-comm stores are fast becoming cybercriminals' favorite hangout spots?
Cybersecurity threats will always be a constant menace to e-commerce websites. They include vast amounts of financial and private information that would-be thieves can exploit. The impact can be both in terms of data compromise and the loss of client trust.
Owners of e-commerce businesses are increasingly ramping up their security procedures due to their intimate understanding of these problems. In the VMWare Carbon Black 2020 Cybersecurity Outlook Report, 77% of the organizations examined had bought new security products in the previous year, and 69% had hired more security personnel.
Nowadays, a lot of people prefer online shopping options to conventional ones. Unfortunately, this continual expansion of the e-commerce industry also increases the risk of e-commerce security breaches.
You are exposed to these breaches if your e-commerce security isn't optimized. Also, you stand to lose sales, consumers' trust, and your company's reputation when they compromise private client information.
To reduce online dangers and strengthen your e-commerce security, you can adopt the recommended practices and tactics described in this article.
Let's dive in!
Table of Contents
Common security threats most e-commerce businesses face
An internet security breach may have severe repercussions for businesses and their customers. When hackers gain access to sensitive information, such as personal consumer data, credit card data, or company info, they can cause various harm.
You must be cautious of multiple risks when operating an internet store. Security issues can take the form of phishing attacks, credit card fraud, personal data exploitation, hacking, financial theft, and the exploitation of personal data. Now let's look at a few of the most common ones impacting online businesses, aka e-commerce stores.
1. Card Not Present (CNP) fraud and online phishing
Online, telephone, and postal fraud fall under the card-not-present fraud (CNP) category. In instances where a store doesn't receive a card for a spot inspection, it is, therefore, a fraudulent payment.
For a better understanding, card-not-present fraud occurs when the consumer makes a fraudulent purchase without actually handing the merchant their card. Theoretically, it is more difficult to stop than card-present fraud. That's because the store cannot directly check the credit card for indicators of potential fraud, including a defective microchip or changed credit card number.
Fraudsters can commit card-not-present fraud if they can access a cardholder's name and card details. Cybercriminals frequently steal credit card information from business customers via online phishing and CNP fraud.
CNP fraud and online phishing are the most prevalent threats most online businesses encounter. For this reason, this article dedicates an entire section to providing ways to avoid falling victim to these sinister acts.
2. Distributed Denial-of-Service (DDoS) attack
A Distributed Denial-of-Service attack is a type of cybercrime when the perpetrator saturates a server with internet traffic to keep people from accessing linked websites and online services.
DDoS attacks are on the rise, and even some of the biggest international businesses are susceptible to them. The most significant attack in history, surpassing the attack on GitHub two years earlier, happened in February 2020 against none other than Amazon Web Services (AWS). DDoS implications include a decrease in actual traffic, lost revenue, and reputational harm.
Hackers are increasingly using techniques similar to DDoS to conduct lower-intensity "degradation of service" attacks that cause expensive service slowdowns without completely shutting down resources. These assaults can potentially avoid DDoS defense systems' detection over lengthy periods.
3. Malware
Malicious software, also known as "malware," refers to any software created to attack, harm, or compromise a system. These programs seek to use your computer or personal information for their gain, which is typically the case. The threat of malware programs is enormous, and some can be very unpleasant.
Cybercriminals often use it to obtain the information they can exploit to manipulate victims for profit. There is an unlimited variety of information that can now be easily compromised. They include financial information, medical records, personal emails, and passwords.
Hackers can manipulate the server and make changes to the eCommerce website through malware. It gives hackers access to information on the server and allows them to divert your website's visitors.
Why security is crucial for your e-commerce store
If you're looking for a good reason to tighten up the security of your online store, here's one: in 2018, 32.4% of successful cyberattacks targeted e-commerce websites.
Cybercriminals are putting in more time to identify more security weaknesses.
Serious companies must implement a strong eCommerce digital security strategy and procedures to protect the business and its clients from online threats. Doing this makes it possible to run your business without being concerned about being shut down by cybercriminals.
One of the significant benefits of using security for e-commerce is that you'll be in a better position to gain your customers' trust. Since you are implementing the appropriate precautions to safeguard their personal information, they feel more secure while purchasing from your company. Customers will immediately leave your website and go to a competitor's website if they even have the slightest worry that their transactions aren't safe. It will cost your business sales eventually.
Elements of a good e-commerce security strategy
A robust security system must shield the assets on an e-commerce website from illegal use, access, tampering, or loss. A solid infrastructure and foundation are necessary to support a safe and prosperous e-commerce business.
Online stores must develop an effective e-commerce security protocol around the following six frameworks:
- Integrity: Integrity describes techniques for guaranteeing that the data is authentic, correct, and protected from unwanted user alteration. Users need to be able to trust information. Hence, data integrity is a crucial aspect of information security.
- Non-repudiation establishes whether or not the two parties received the information transferred between them. It guarantees that the individual who performed the transaction will be unable to cancel the purchase. In other words, it ensures that no one can contest the transaction's legitimacy.
- Availability: The concept of availability states that clients must constantly have access to data. For the e-commerce site to consistently satisfy visitor needs, it must be operational around the clock.
- Privacy: Privacy prohibits any business from sharing customer data with unauthorized parties. No one else should access a customer's personal or account information except the selected online vendor.
- Confidentiality: Confidentiality refers to preventing data from being accessed by an outsider. In other words, only those permitted can see, alter, or use any sensitive data belonging to a customer or a business.
- Authenticity: The vendor and the customer must be actual people to comply with the authentication concept in eCommerce security. They ought to be who they claim to be. The company should be able to provide evidence that it is legitimate, deals in actual goods or services, and fulfills its commitments.
SEON tips to avoid online phishing
With these SEON tips on how to avoid CNP fraud, any e-commerce site can limit CNP fraud's effects. CNP fraud prevention safeguards your company's and your customer's interests. By eliminating CNP activities in the first place, you can avoid the embarrassment of having to inform your customers that they must cancel and renew their credit cards.
Without further ado, here are some vital tips on how to deal with CNP fraud:
1. Know your customer well enough
There's almost nothing that beats having adequate knowledge of your customers. A grasp of your customer's details is beneficial for nipping CNP fraud in its bud. For instance, it may be a warning sign if a transaction uses your credit card number but originates from an IP address other than where you have seen it before.
2. Have a multi-factor authentication process
Companies should establish multiple procedures to confirm a buyer's identification. An Address Verification Service (AVS) is part of these stages. An AVS is a tool that compares the buyer's address to the address stored on the credit card. The credit card company sends the merchant an approval number to complete the transaction if the match is accepted quickly.
3. Watch out for abnormal activities
Various e-commerce companies have different perceptions of suspicious transactions. However, there are sure broad warning signs to be observed. They include inappropriate browser and device movements, unusual changes in location and billing addresses, etc.
5. Keep the basic data commandments
Adopting the most recent data encryption and internet security measures is critical to keep you and your clients safe. You can prevent credit card information from getting into the wrong hands by using essential tools like SSL, particularly on payment pages.
6. Dispute chargebacks
Identify the primary causes of disputes and take action to reduce their impact. Only then can sellers take advantage of the anticipated boom in online sales without worrying about growing chargebacks. Numerous solutions exist that can assist merchants in preventing refund requests, enhancing their financial standing, and improving consumer satisfaction.
Wrapping it up
The success of your company depends heavily on developing strong e-commerce security. You can't afford to expose your consumers' sensitive information and risk losing their trust. By using contemporary e-commerce security solutions, you gain the edge of spending more time expanding your organization and less time fretting about threat detection and upkeep.
To constantly ward off security risks, businesses should use a variety of e-commerce security protocols and safeguards. Using SSLs, multi-factor authentication is crucial in addition to the fundamental authentication mechanisms like usernames and passwords.