Security threats can diminish all your growth efforts for your online business.
The Global Security report listed online retail as one of the most targeted sectors for cyberattacks and statistics suggest that more than 25% of eCommerce sites had malicious issues.
Cyber attacks can successfully destroy an online brand’s reputation, bring in huge losses, and cause irreparable damage to your sales funnel and customer trust.
That brings us to our next point. The importance of knowing the underlying security threats that eCommerce businesses can encounter in their day-to-day operations.
Top eCommerce Security Threats that You Should Know
Ecommerce security is a set of guidelines for online stores to safeguard their online transactions and prevent their website from cyberattacks. Numerous types of cyberattacks can threaten online retail stores.
E-commerce development companies specialize in creating secure online platforms, integrating robust security measures to protect against such cyberattacks.
Source
Listed below are some of the most common types of eCommerce security threats that you should be aware of so that you can take proactive steps to prevent them.
1. Financial and Credit Frauds
Such frauds can take several forms, the most common of them being credit card fraud. It occurs when a cybercriminal uses stolen credit card data to buy products in your store. Fraudsters even do account takeovers where they get unauthorized access to a customer account exploit the stored payment data and even make fraudulent purchases. Thus, it is highly recommended to work with a reliable credit card processor if you allow online transactions on your website.
Chargeback frauds are also a common occurrence in eCommerce businesses where the fraudster purchases goods from an eCommerce site and then requests a chargeback from the bank after the item has been received. The bank will refund the transaction amount to the fraudster and get the same amount from the retailer, whereas the fraudster gets to keep the products.
2. DoS & DDoS Attacks
Distributed Denial of Service (DDoS) are attacks which disrupt eCommerce websites and overall sales. eCommerce sites are flooded with requests from untraceable IP addresses causing it to crash and making it inaccessible to store visitors.
Such attacks can cause a downtime which directly translates to a loss of revenue as there are no ongoing purchases. Customers who are at the receiving end of DDoS attacks can also share negative experiences online which can cause additional damage to the website’s reputation.
3. Malware & Ransomware
Malware, short for malicious software, refers to programs that are specifically designed to damage, disrupt and gain unauthorized access to a computer system. Such software can be a virus, spyware, trojan horses and ransomware.
Hackers and fraudsters install them in your store system, spread them to your customers and administrators, and collect sensitive information from your customers and your store. Remote access Trojans can give hackers unauthorized control over the website where they can steal data, modify content, and set up more dangerous forms of malware. Ransomware malware encrypts files and cybercriminals demand a payment to send a decryption key.
4. Phishing Attacks
A phishing attack occurs when an attacker sends deceiving emails or messages to customers posing as a legitimate business. They trick users into giving their passwords or credit card details to log into customer accounts and start shopping.
Source
eCommerce stores receive reports of their customers receiving messages or emails supposedly from the said store as the emails and messages contain logos, URLs, and other information to convince customers and trick them into sharing information to steal personal data. Occurrence and disclosure of such attacks can cause significant reputation damage to your firm and loss of customer trust.
To protect your eCommerce site from fraudulent activity, you can try IPWhois.io to detect any malicious attempts to attack your site and report the potential attack for further investigation. Whether it’s something significant as payment fraud attempts, or minor such as registration fraud, using geolocation, you can detect these situations much easier than you would without it.
5. SQL Injection
As an online store, you have databases of customer information that contain their personal information, addresses, phone numbers, email addresses, etc. A hacker can do an SQL injection attack that grants them access to these databases. They bypass the authentication page with a malicious piece of code and get access to the back-end data which they can steal, modify, and even delete it. They corrupt your database and even wipe out the trail.
6. E-Skimming
E-skimming is a type of eCommerce security threat where cybercriminals steal credit card information from the payment processors on the checkout page. E-skimming can be a consequence of phishing, XSS, or brute force attacks. The hacker injects malicious code into (POS software) to steal credit card details as customers fill out that information in real time. The skimmer captures the data from payment forms and relays that info to the hacker.
7. Cross-Site Scripting (XSS)
Cross-site scripting attacks are those where XSS attacks a vulnerable website typically through Javascript. The target websites are those that accept user input like search bars, comment boxes, or login forms. Criminals attach malicious code to your stores and deceive browsers into executing the malware when the site is loaded.
Since the Javascript runs on the browser pages of the customers, it allows bad actors to target site administrators compromise the website and relay the information to the hacker.
Wrapping Up
While eCommerce security threats are abundant, you also have the best eCommerce security practices that can mitigate the risks and reduce the impact of such breaches. Some practices include safe payment processors, frequent security inspection, integrating anti-malware software, SSL encryption, and adopting advanced security practices.
You can also conduct eCommerce surveys using an online survey tool to see what security-related issues customers are facing on your sites and gauge what you can do to mitigate such problems to keep the consumer experience intact.
For an industry that entirely relies on a website to ensure the smooth flow of revenue and sales, it’s necessary to understand the security threats and measures that are needed to protect online stores. They ensure your customers’ information is in safe hands and your business is protected against hacks and cybercriminal activities. Taking the necessary steps helps you save time and money, increases customer confidence, and even safeguards your brand reputation.
Carl Torrence is a Content Marketer at Marketing Digest. His core expertise lies in developing data-driven content for brands, SaaS businesses, and agencies. In his free time, he enjoys binge-watching time-travel movies and listening to Linkin Park and Coldplay albums.
Twitter - https://twitter.com/torrence_carl
LinkedIn - https://www.linkedin.com/in/torrence-carl/
