In 2022, eCommerce security related incidents were rampant among the top cybersecurity highlights. Businesses recorded losses of 41 billion dollars to online payment fraud, making it the most significant loss in the industry in contemporary times. Unfortunately, not all eCommerce businesses can survive a cybersecurity attack. In the US alone, it costs $3.36 for every dollar lost to fraud, which is over 300% of the loss.
Even if you spend that much, there’s no guarantee of a comeback as you have to deal with reputational damages and loss of trust. According to LinkedIn, less than 40% of companies successfully handle a cyber attack.
Table of Contents
- eCommerce Security tips and practices
- Popular eCommerce security threats you should be aware of
- The importance of eCommerce security measures
- Conclusion
Value of eCommerce losses to online payment fraud worldwide 2020-2023 (Statista)
Despite the risks associated with online shopping, online stores are becoming increasingly popular due to their convenience and accessibility. A Nasdaq market forecast suggest that by 2040, around 95% of global purchases will be done online. However, with the growing reliance on digital platforms, the threat landscape within the eCommerce sector is also expanding, making eCommerce security a critical concern for entrepreneurs and online businesses of all sizes.
In this article, we’ll delve into essential eCommerce security tips tailored specifically to ensure your online businesses are safe.
eCommerce Security tips and practices
To maintain your eCommerce security holistically, it is important to implement proactive measures that prevent malicious attacks and detect loopholes and vulnerabilities before the bad guys do. Here are some useful tips and practices that can help you stay ahead of the Cybersecurity game.
- Prioritize strong authentication
Implementing robust authentication methods is the first line of defense against unauthorized access. Utilize multi-factor authentication (MFA) for all accounts, requiring users to provide multiple forms of verification before gaining access. This greatly enhances security by combining something users know (password), something they have (token or smartphone), and something inherent to them (biometric data) if feasible.
- Prioritize secure platforms
Nowadays, many SaaS platforms offer digital infrastructure that allows online business owners to create their digital stores without starting from scratch. Although this option is convenient and affordable for business owners, it is also risky because it is difficult to determine what security measures the platform has in place to protect both their platform and your business.
You have to do your research and carefully Choose a reputable and security-focused platform that regularly updates its software to patch vulnerabilities. Look for platforms that offer end-to-end encryption, secure payment gateways, and comprehensive security features.
- Stay away from shady third-party integrations.
eCommerce platforms often rely on various third-party integrations, plugins, and services to enhance functionality and provide better user experiences. However, not all third-party integrations are created equal, and some can pose significant cybersecurity risks if not properly vetted and managed.
While Integrating third-party services can enhance your website’s functionality, you should be wary of Trojan horses and backdoor vulnerabilities. Vet your third-party partners thoroughly, ensuring their security practices align with your own. A single weak link in the chain can expose your entire eCommerce venture to potential breaches.
- Your site should be PCI-DSS compliant.
The Payment Card Industry Security Standard is a series of security standards that businesses that obtain credit card details are required to implement to ensure the security of credit card data in their possession. The end goal of the PCI-DSS standard is to prevent fraud and credit card theft.
The PCI-DSS compliance requires implementing a combination of security measures, including encryption, access controls, regular security assessments, and vulnerability management. This multi-layered approach significantly strengthens the overall security posture of an e-commerce site.
- Regular eCommerce security audits and penetration testing
Conduct regular security audits and penetration testing to identify vulnerabilities before malicious actors do. Hire penetration testers to probe your system’s defenses and provide insights into areas that need strengthening. This proactive approach can save you from costly eCommerce security breaches down the road.
- Educate your team on cyber hygiene.
A reported IBM security report points out that human negligence was behind 95% of all successful cyber attacks. Another Kaspersky report suggests that employees cause 23% of data leakages. Your security measures are only as strong as your weakest link, and often, that link can be human error. Educate your team about cybersecurity best practices, such as recognizing phishing emails, using strong passwords, and maintaining the confidentiality of sensitive information. A vigilant team can thwart potential attacks.
- Back-up, Back-up, Back-up!
Ransomware attacks can hold your business hostage by encrypting critical data until a ransom is paid. Avoid falling victim to this nightmare scenario by regularly backing up your data to secure offsite locations. In case of an attack, you can restore your operations without giving in to the demands of cyber-criminals.
- Data encryption
Encrypt sensitive customer data, both in transit and at rest. Encryption transforms data into unreadable code, which can only be deciphered with the appropriate decryption key. This adds an extra layer of protection in case of a data breach.
Even if a breach occurs and encrypted data is stolen, the stolen ciphertext is essentially meaningless without the encryption keys. This additional layer of security minimizes the impact of data breaches. Breached data remains unreadable and unusable without the decryption keys, making it far less valuable to attackers.
- Be wary of DDoS attacks.
DDoS means Distributed Denial of Service attack; this occurs when there are too many bot-led HTTP requests on a website, causing the server to fail. The server failing gives the attackers the time and opportunity to hack and infiltrate your website with malicious intent.
To prevent DDoS attacks, you must be proactive in responding to any anomalies perceived on your website. Contact your service provider immediately if there is a glitch or unusual traffic.
- Your website should be secured with SSL certificates.
The secure socket layer (SSL) certificate generates an encrypted channel between a user and the server. The transmission and communication of sensitive data, such as credit card details, account login information, etc., should be well-secured to prevent data breaches.
Popular eCommerce security threats you should be aware of
With 32.4% of all cyber-attacks targeted at eCommerce businesses, this industry has become the most vulnerable and most attacked. So, if you own one or intend to launch one, here are some popular threats to be wary of.
Phishing and social engineering
Phishing attacks remain one of the most common eCommerce security threats. Cyber criminals craft deceptive emails, messages, or websites that mimic legitimate ones to trick users into revealing sensitive information, such as login credentials or financial details. Spear phishing, a targeted form of phishing, involves personalized content that makes the victim more likely to fall for the scam.
Recommendation: Educate employees and customers about recognizing phishing attempts. Implement robust email filters and multi-factor authentication (MFA) to add layers of protection. Regularly update and patch software to prevent vulnerabilities that attackers might exploit.
Ransomware
Ransomware attacks have escalated in sophistication and impact. Attackers infiltrate a system, encrypt essential files, and demand a ransom for their release. E-commerce businesses are especially vulnerable, as downtime can lead to loss of revenue and customer trust.
Recommendation: Regularly back up data to offline or cloud-based storage. Employ robust network security measures to prevent unauthorized access. Segment networks to limit the spread of ransomware. Develop an incident response plan to quickly mitigate the effects of an attack.
Magecart attacks
Magecart attacks specifically target ecommerce websites. Hackers inject malicious code into payment pages, enabling them to capture customers’ payment information during transactions. This sensitive data is then harvested and used for financial gain or sold on the dark web.
Recommendation: Keep software, plugins, and platforms updated. Regularly scan for vulnerabilities and signs of malicious code. Implement web application firewalls (WAFs) to detect and prevent these attacks. Regularly audit and monitor payment processes.
Data breaches
Data breaches involving customer information can be catastrophic for an online business’s reputation. Personal and financial information can be exposed, leading to legal consequences and loss of customer trust.
Recommendation: Utilize encryption for sensitive data, both in transit and at rest. Minimize the collection and retention of unnecessary customer information. Comply with data protection regulations like GDPR or CCPA. Develop and practice an incident response plan.
Third-party risks
Many online businesses rely on third-party vendors for various services. These third parties can become vectors for cyberattacks if their security measures are inadequate. Attackers might compromise these vendors to gain access to the main target’s systems.
Recommendation: Vet third-party vendors’ cybersecurity practices thoroughly. Include cybersecurity clauses in contracts that outline security standards and liability. Monitor their security posture regularly.
DDoS attacks
Distributed Denial of Service (DDoS) attacks overwhelm a website’s servers with an influx of traffic, rendering it inaccessible to users. E-commerce businesses often become targets due to the potential for financial disruption.
Recommendation: Implement DDoS mitigation solutions that can detect and absorb attack traffic. Partner with hosting providers that offer DDoS protection. Develop a scalable infrastructure to handle traffic surges.
The importance of eCommerce security measures
- Identifying vulnerabilities: eCommerce platforms are complex systems with various entry points for potential attackers. Regular eCommerce security audits involve a comprehensive assessment of the system’s architecture, code, configurations, and network infrastructure. Penetration testing takes this a step further by actively attempting to exploit vulnerabilities in the system. By doing so, both methods help identify weaknesses that attackers could potentially leverage to gain unauthorized access.
- Staying ahead of threats: eCommerce Security threats continually evolve, and new vulnerabilities are discovered regularly. By implementing security measures, you ensure that your eCommerce platform is up-to-date with the latest security features and is prepared to defend against emerging threats.
- Compliance requirements: Many industries, including eCommerce, are subject to regulations like the Payment Card Industry Data Security Standard (PCI DSS). The European Union’s General Data Protection Regulation (GDPR) and California’s Consumer Privacy Act (CCPA) are just a couple of other examples of stringent regulations that impose hefty fines on companies that fail to protect customer data adequately.
By adhering to these regulations and implementing cybersecurity measures, eCommerce businesses avoid legal troubles and demonstrate their commitment to ethical business practices.
- Customer trust: eCommerce businesses rely heavily on customer trust. Customers provide sensitive personal and financial information when making online purchases. Demonstrating a commitment to security by implementing security measures can enhance customer confidence in your business.
- Preventing data breaches: Data breaches can have severe financial and reputational consequences for eCommerce businesses. Regular security assessments help identify and address potential security gaps before they can be exploited by malicious actors, reducing the risk of data breaches.
Conclusion
In the dynamic world of eCommerce, cybersecurity isn’t a one-time task; it’s an ongoing commitment. By implementing these tips, you’re safeguarding your online business and building a reputation of trust and reliability. Remember, in digital commerce, security isn’t just a feature – it’s a foundation for success.