In 2023, E-commerce sales accounted for over 15 percent of total sales, according to the US Census retail report. As markets rapidly transition to online platforms, business owners must pay special attention to their security protocols.
The evolving nature of cybercrime means that cybersecurity isn't a one-and-done chore. It requires constant management and updating to remain effective. Otherwise, you may fall victim to a new technology or black-hat strategy.
E-commerce security encompasses all tools and protocols used to protect online transactions, customer data, and the overall integrity of Internet markets. The goal is to create a reliable digital environment that customers can engage in without fear of cyber threats.
Preventing Data Leaks & Breaches: E-commerce security aims to keep hackers and scammers out of all systems. This includes protecting software, networks, customer accounts, and real-world hardware.
As more advanced protection features arise, new criminal strategies develop in response. This is an unchangeable rule of the field. Recent trends are using artificial intelligence to enhance the speed and efficiency of cyberattacks greatly.
However, although the technology behind each attempt is improving, attacks can generally be categorized into a few types:
Social engineering uses deceptive and manipulative tactics to trick people into revealing sensitive information. Criminals often target employee login credentials as a starting point to access business servers. Customers are targeted for login credentials as a starting point in initiating identity theft schemes.
Malware is malicious software designed to steal sensitive data or disrupt operations. Falling for malware attacks without proper e-commerce security measures risks consumer information. These programs run in the background and provide very few indicators of compromise in the initial phases.
Attackers target weaknesses in a network infrastructure to disrupt transactions and intercept sensitive data. Tactics, including Distributed Denial of Services (DDoS) attacks, can shut down operations and lead to significant financial losses for an e-commerce business.
Payment fraud uses deceptive tactics to manipulate payment processes or steal from a business. E-commerce businesses estimated $48 billion in losses due to fraud in 2023. On a smaller scale, every $100 in fraudulent orders costs a company twice as much in other costs.
There isn't a universal solution to e-commerce security. The many types of cyberattacks demand an equal number of protective measures. However, owners can achieve an acceptable baseline coverage through the following methods:
Encryption is the process of converting data into a seemingly random format using a hidden cipher. Only authorized personnel can view the decrypted version, preventing hackers from using the information even if they successfully intercept or steal it.
The most accepted and widely used encryption protocols are AES-256 and ChaCha20. If you choose another option, ensure it uses an appropriate key length and is acceptable for PCI DSS standards.
Multi Factor Authentication should be implemented for both customers and employees. It requires users to submit multiple forms of identification, such as text or email verification, before accessing an account. Hackers need more than a person's login details to commit identity fraud or access restricted servers.
Popular versions of MFA in 2024 include tokenization, biometrics, and time-based passwords.
Firewalls and IDSs are like Swiss army knives of online security, serving multiple functions. These tools control access, filter incoming data, and analyze individual network connections to isolate issues. Quality versions employ artificial intelligence to scan for dangerous patterns and user behavior and give businesses more time to prepare for an incoming attack.
SSL/TLS certificates establish encrypted connections between individual clients and the e-commerce server. This session is created through asymmetric key encryption, preventing malicious actors from accessing transmitted data without the business's private key.
Historically, employees have been hacker's easiest door into secure networks. Help desk workers must recognize dangerous questions, and all employees should be briefed on phishing emails. Education should be repeated periodically to avoid increased neglect over time.
Most software patches are small, making them appear insignificant. However, these new versions address burgeoning security issues that have penetrated other programs. Ignoring update prompts is an excellent way to become a criminal's next victim.
Scheduled security audits help identify vulnerabilities and weaknesses in your infrastructure. This proactive approach allows businesses to address issues before malicious actors exploit them.
Develop a comprehensive incident response plan for security incidents. Defining everyone's roles and responsibilities will help everyone remain calm and react quickly to solve the problem.
E-commerce security isn't a luxury; it's a fundamental requirement for operating online. The escalating threats faced by e-commerce markets demand a combination of passive and proactive security measures.
It may seem like a complicated process, but staying informed is the priority. Remaining educated on upcoming technologies and potential threats will guide you on how to customize your defenses in the future.
Bio: Ben Hartwig is a web operations director at InfoTracer. He authors guides on marketing and entire cybersecurity posture and enjoys sharing the best practices. You can contact him via LinkedIn.
