Strategies for ensuring data security in eCommerce

There is a lot to like about running an eCommerce business. Low overheads, unrestricted opening hours and the potential for a global customer base are just a few of the features that make the online world attractive for entrepreneurs. For all those benefits though, there is one factor that is increasingly causing headaches for eCommerce ventures of all shapes and sizes – data security breaches. With research showing almost 30% of eCommerce website traffic has malicious intentions¹, it has never been more important for organizations to adopt strategies for protecting their eCommerce assets.

What is eCommerce data security?

eCommerce data security is a series of protocols and guidelines that aim to ensure businesses and their customers can complete safe online transactions. In the same way that bricks-and-mortar stores dedicate resources to prevent physical theft (eg: CCTV, security staff), eCommerce stores need to invest in measures that protect them from digital crime. Global security reports have identified retail as the most targeted sector for cyberattacks² and four areas are vital for gaining customers’ trust online:

• Privacy: the prevention of unauthorized parties (both internal and external) from accessing customer data.
• Integrity: the accuracy of customer data, with a clean and curated dataset critical to building confidence within a consumer base.
• Authentication: the ability for an eCommerce business to prove that it does it what it claims and for its customers to verify their identities before making online transactions
• Non-repudiation: the legal principle that ensures businesses and customers are unable to deny they participated in a transaction and therefore must complete the deal they initiated.

Why is eCommerce data security important?

eCommerce data security is crucial to protect sensitive information, maintain customer trust and ensure business continuity. As online platforms handle vast amounts of personal and financial data, they are prime targets for cybercriminals and the costs of failing to safeguard such information can be considerable. This is supported by studies that have found:

• About 10 accounts per 1,000 that visit eCommerce shops are dealing with a data breach³
• eCommerce companies lose than $48 billion in revenue each year due to online fraud⁴
• 50% of small eCommerce businesses believe that cyberattacks are becoming severe⁵
• 88% of professional hackers can infiltrate organizations in just 12 hours⁶
• 33 billion online accounts were expected to be breached by hackers in 2023 alone⁷.

^{Source: The Global Ecommerce Security Report 2022 - www.webscale.com}

What are common eCommerce security issues?

Just as technology is forever evolving, new data security threats are constantly emerging. Here is a selection of the most common security issues impacting eCommerce businesses.

• Phishing: it is a sign of its prevalence that very few people will not have been at the receiving end of a phishing attempt. A method of cyberattack that tricks victims into providing confidential personal information, phishing sees customers targeted by emails, texts or phone calls that appear to come from a trusted business or website and promote a sense of urgency. Phishing only works if people hand over the likes of passwords or social security numbers though, which is why eCommerce businesses should inform their customers they will never ask for personal information in such ways.
• Malware and ransomware: the name says it all. Malware is short for ‘malicious software’ and is designed to disrupt, damage or illegally access computer systems. Whether it slows an eCommerce business’s online functions or locks people out of their platforms altogether, it can have a devastating effect and be hugely expensive to remove. For example, ransomware is a specific malware that encrypts a victim’s life until that victim pays a substantial fee.
• SQL injection: it is common practice for eCommerce businesses to store data in structured query language (SQL) servers but users need to be aware that they are not automatically secure. With data stored in tables that can be retrieved by applications using requests or ‘queries’, unprotected servers are at risk from attackers who write and inject their own queries. The result? They are granted access to view or change information anywhere in the database. The solution? Provide security training to developers, treat any edits as untrusted and, better still, adopt modern development technologies.
• E-skimming: credit and debit cards are hugely convenient for customers but can pose headaches for eCommerce operators due to the rise of E-skimming. This sees hackers target payment processors on websites and use stealth technologies to capture payment information as customers input their details. 
• Distributed denial of service (DDOS) attacks: all eCommerce businesses live in fear of their platforms ‘going down’, that sickening moment when they realize customers are unable to connect with their websites or apps. Now imagine how heartbreaking that is when that is the result of a deliberate effort. Such is the nature of DDOS attack when a large number of compromised devices are used to flood an eCommerce business with traffic and ultimately overload their platforms so they are unavailable to customers.

What are internal eCommerce data security risks?

eCommerce operators need to not only be on the lookout for external security risks. Sometimes the threat comes from within one’s own organization.

• Staff negligence: protecting one’s eCommerce assets from cybersecurity attacks is difficult enough without staff making simple human errors. Education is the key to ensuring employees have an unwavering commitment to security policies and procedures, be it using strong passwords, avoiding suspicious links or attachments and never sharing sensitive details with unauthorized persons.
• Staff sabotage: simple human errors is one thing. Counteracting sabotage from so-called team members is another challenge altogether. Disgruntled or deceitful employees are incredibly difficult to stop but steps can be taken to reduce their opportunities or impact such as limiting access to data, surveillance monitoring and regular reviews of concerning staff.
• Third-party insiders: employees are not the only people who can provide hackers with access to eCommerce platforms. External contractors, vendors and even customers may find their own systems exposed, which can result in contagion being brought into secondary sites and platforms. It may be a longer route to unauthorized access but the fallout can be no less damaging.

^{Source: Report: Cybersecurity 2023 (digitalocean.com)}

What are best practices for eCommerce data security?

Protecting eCommerce assets starts by taking a proactive approach to data security, with businesses able to incorporate a number of practices into their strategies.

• Multi-layer security: the days eCommerce businesses being able to employ one layer of digital security are over. Secondary or even tertiary layers of security controls are imperative to ensure that cybercriminals are forced to penetrate multiple obstacles to access the information they are seeking. Options include a content delivery network (CDN), with the best using machine learning to identify and block threats, while multifactor authentication for employees and customers is a must in the modern online environment.
• Secure sockets layer (SSL) certificates: there are many acronyms in the online space but SSL may well be the most important for eCommerce businesses. By verifying a website’s identity and serving as an encrypted connection, SSL certificates not only protect sensitive transactions that unfold on websites but prevent hackers from using those sites to ‘phish’ from.
• Strong firewalls: firewalls have long been part of the data security landscape but they are no less important in the modern world. Firewall software and plugins act as gatekeepers on eCommerce sites, allowing access to trusted traffic and blocking untrusted connections. Stopping malicious traffic from entering one’s network starts with detecting anomalies and this is where strong firewalls shine.
• Anti-malware software: stolen credit card information can be a nightmare for eCommerce stores, given they increase the likelihood of fraudulent activity. Fortunately, anti-malware and antivirus software employ cutting-edge algorithms that alert operators to suspicious transactions and help determine if they are legitimate.
• Education: too many eCommerce businesses invest heavily in technologies that reduce the risk of data security breaches but drop the ball on staff training and customer awareness. From educating employees about the need for strong passwords to sharing public reminders about the rise of phishing attacks, the onus is on operators to be proactive. Depending on resources, companies can even test their workforces with fake emails to gauge their responses to potential attacks.
• Incident response plans: the saying goes that we should hope for the best and prepare for the worst, which is why every eCommerce business should develop a customized plan for how to react in the event of a data security breach. Knowing who needs to do what and when is essential during a crisis and a well-crafted incident response plan will provide those details and many more.

Conclusion

Just as property owners sleep easier at night knowing their home is insured, having a data security strategy will provide immense peace of mind for eCommerce operators. The protection of sensitive information lies at the heart of building and maintaining public trust, not to mention safeguarding one’s own financial and operational capabilities.

An increasing number of eCommerce businesses are turning to outsourcing to increase efficiencies, boost productivity and ease financial pressures. Discover 10 tips for eCommerce customer service outsourcing.