E-commerce is one of the fastest-growing industries in the world today. Online purchases accounted for 32.4% of all online sales in 2020, with consumers spending over $800 billion. For cybercriminals, it means that there is more money to steal and weak spots as opportunities to exploit.
Bad actors can also extract the data from the e-commerce and payment enterprise databases and then sell it to the highest bidder. One datum is worth approximately $0.36 in this digital age.
Cybercriminals are targeting various industries, including finance, healthcare and energy. Cybersecurity threats and risks are more likely to be posed by e-commerce because of its nature. Unauthorized individuals may access customer information and system controls if networks or platforms are not entirely secure. Cybercrime can cause small and medium businesses financial losses, reputation damage, data leakages, and monetary damages of up to $2.2 million.
E-commerce businesses can reduce cybersecurity risks by increasing awareness and strengthening cybersecurity. E-commerce businesses can learn about cybersecurity threats and avoid common human errors that lead to security breaches. Integrating cybersecurity solutions such as digital signature authentication into online platforms helps prevent fraud in the long run.
Although there are no guarantees that cyber attacks will be entirely prevented, security measures and safeguards can reduce the risk for both customers and the enterprise. Businesses can be sure to stay up-to-date with the most recent tools to protect themselves against the next major cybersecurity threat.
Privacy is a primary security measure that limits access to confidential information between bound parties. It is why no one should have access to an account or any other personal information except the customer and seller.
Cybersecurity experts recommend that companies collect only the necessary information. The fewer data a company holds, the less attractive it will be to hackers and cybercriminals. E-commerce companies should also post privacy policies to inform customers about their rights and limitations in providing crucial information.
Cyberattacks rose by 300% in November 2020 amid the increased e-commerce transactions and online purchases. Online retailers usually bear the most damaging effects from cyberattacks, such as supply chain attacks, ransomware attacks, and phishing.
Due to the increased risk, businesses must secure access points to their database systems and increase authentication measures to ensure control. Another solution to consider is frictionless payment authentication with a FIDO2 certification security mechanism for payment transactions. This solution is easy to integrate, compliant with regulations and offers a higher level of security against bad actors in the online world.
For more information about cybersecurity in the e-commerce/payments industry, here is an infographic from Login ID.