The retail landscape worldwide has significantly changed in recent years, mainly attributed to the massive development of technology and the arrival of the COVID-19 pandemic in 2020. Last year, the total market share of online sales reached more than 19%. This is a significant increase from the 16% value of the sector before the pandemic in 2019.
Because of the enormous amount of classified data that various e-commerce companies have, they are a constant target of cybercriminals. Gaining access to this information will allow fraudsters to control the consumers’ accounts, leading to financial losses for businesses and their clients. It is estimated that small and medium enterprises sustain more than $2 million of financial and reputational damage annually.
One of the most common security risks that e-commerce and payment firms continuously face is data breaches. Swindlers do this through different methods, such as malware, phishing, and targeting weak knowledge-based credentials like passwords and PINs. With a successful cyberattack, bad actors might be able to conduct fraudulent activities using their target’s information.
This is why countless organizations prioritize deploying robust digital security measures for their systems. Using modern complex software and digital signature in the checkout process helps ensure that the services are not used for illegal activities.
Another method that businesses use is implementing controls that provide a high level of privacy of customer details, ensuring that the information is only available for the customer and the seller. It is advised that companies should only collect the information required to complete any transactions to make it less compelling for malicious people to attack their networks.
Having a solid identity authentication process will also help organizations protect their customers. The increased reliance on e-commerce and online payment platforms means that cybercriminals will constantly try to gather the information they can use. Traditional verification methods like passwords are not enough at present. Sophisticated identity proofing means like the FIDO2 biometric authentication provides frictionless authentication process without compromising the security of their clients.
As e-commerce continues dominating the retail industry, cybercriminals will maintain their ceaseless attacks using various ways. To learn more about cybersecurity in the e-commerce and payments industry, check this infographic from LoginID.
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