Cybersecurity in E-Commerce

In any organization, regardless of the industry or the size, cybersecurity is one of the most pressing concerns to handle. Some companies, especially those that store and manage large amounts of sensitive data and those that operate primarily in the digital sphere, are more at risk of being targeted by cyberattacks. The consequences of those attacks can also be particularly harmful for these organizations, even posing an existential threat if the attack is severe. For companies that deal in e-commerce, there are always new and evolving threats from bad actors, making cybersecurity an area of the utmost importance.

The Importance of Security

Cybersecurity is a major concern for e-commerce organizations for a number of reasons. Business operations in e-commerce often include the use of a large number of APIs, broadening the attack surface and creating potential security gaps and vulnerabilities. They also tend to handle financial information or connect to financial services in order to enable transactions; this data is valuable and likely to be targeted by cybercriminals.

The success of an organization in the e-commerce industry depends in large part on the reliability of its security measures. The consequences of an e-commerce attack can be severe.

• Loss of Trust: Customers may lose faith in the organization’s ability to protect their sensitive data like personally identifiable information, leading to the loss of revenue and loyal business.
• Financial Costs: The financial losses associated with stolen data, ransomware payments, and the resolution and remediation of a cyberattack can be in the millions of dollars.
• Compliance Regulations: Companies can incur regulatory penalties, including fines and even legal action, if there are compliance issues leading to cybersecurity incidents.
• Loss of Reputation: An organization is liable to lose esteem in the eyes of the public and other industry professionals following a data breach or cyberattack, especially one that arises from the malicious or unintentional actions of an internal actor.

Common E-Commerce Cyberthreats

Many different types of cyberthreat exist to put organizations and their assets at risk, and a significant portion of e-commerce companies (91%) find themselves experiencing at least one cyber incident annually. Security threats can come from any angle, so it is important for an organization to have cybersecurity measures and policies that are designed to prevent the most common dangers.

• Malware: Bad actors can use hacking, phishing, and other tactics to introduce malicious software to an organization and infiltrate the network.
• Social Engineering: One of the most common techniques used by cybercriminals is social engineering, the use of deception and manipulation to trick their targets.
• DoS and DDoS Attacks: These attacks overload a website with requests in order to disrupt digital operations and cause damage to an organization.
• Financial Fraud: Cybercriminals target both customer and company financial assets, primarily through stolen credit card details and illegitimate requests for product refunds.
• E-Skimming: This form of attack leverages malicious code to steal credit card information from a compromised checkout page on an e-commerce website.
• Bots: Comprising 62% of attacks on online retailers, bot attacks use automated code to steal information, mimic human behavior, and evade detection.
• API Attacks: The use of APIs comes with unique cybersecurity risks, and API security is an area where many organizations are unfortunately lacking.

Ensuring Cybersecurity in E-Commerce

Cybersecurity can be a daunting prospect—in order to sufficiently protect against a broad range of threats, organizations must employ a robust combination of policies, solutions, and measures. E-commerce companies are responsible for defending a large attack surface with many integrated technologies, massive amounts of sensitive data, and important business operations that can have a severe impact if disrupted. Some of the fundamental steps an e-commerce company can take to mitigate security risks are:

• Secure Data Practices: Organizations are encouraged to implement privacy by design, maintain awareness of sensitive data and where it is stored, use data encryption, and practice data rationalization.
• Secure Infrastructure: E-commerce companies must maintain secure infrastructure, whether by building or buying it, to store sensitive data and protect against attacks from malicious actors.
• Regular PII Audits: Personally identifiable information (PII) should be secured and encrypted at rest and in transit, and organizations should regularly audit and optimize their security measures regarding PII.
• Incident Response Preparation: No combination of security measures is guaranteed to be 100% effective against cyberattacks. Companies should have a plan in place for a potential cybersecurity incident.
• Limit Access to Sensitive Data: Information that is valuable, sensitive, or crucial for business operations should be protected against both malicious attacks and internal errors by restricting access to only authorized users whose tasks require access to that data.

Conclusion

E-commerce is an industry that is particularly susceptible to cyberattacks due to the large attack surface and digital processes involved. Cybersecurity incidents have the potential to be disastrous for an organization, bringing not only financial costs but business disruptions, upsets in the supply chain, and loss of reputation. E-commerce companies tend to use many APIs, which present their own unique cybersecurity risks that must be mitigated. With the use of the right tools and implementation of sufficient cybersecurity measures, organizations can protect against the dangers of cyberattacks and other security incidents.