Common cybersecurity threats for e-commerce businesses
E-commerce businesses are exposed daily to the high risk of security threats because of their storage of customers’ private information such as usernames, passwords, bank and credit card account numbers, email addresses, and telephone numbers.
Over the last few years, numerous United States e-commerce businesses had their data platform compromised by “black hat hackers” looking to obtain information that’s useful for their malicious purposes, mostly financial gain.
So if you oversee one of the estimated 300,000 American companies that are at a heightened risk of security threats to e-commerce then you’ll want to learn how to safeguard your organization.
To better educate e-commerce business owners like yourself, our article details:
- 5 most common online security threats, provided with examples and easy to understand explanations
- Substantial benefits of cybersecurity insurance for e-commerce businesses
What is the importance of security for e-commerce?
It’s been reported that one in five small business retailers are subjected to some form of credit card fraud over the course of one year. This type of data breach frequently results in a sharp decline of sales and a loss in positive brand recognition.
In addition, many e-commerce businesses face legal liabilities because they weren’t able to protect their consumer’s privacy.
The bottom line: having your system compromised creates a lack of trust with customers, business partners, and advertisers which can impact your short-term revenue, as well as your long-term success.
What are the security threats to e-commerce?
Dark web criminals are continuously developing wicked ways to attack your network’s weaknesses. As it stands right now, these are the five most common security threats to e-commerce businesses.
- Malware – This software gains access to your e-commerce website and then snags your online visitors personal information as they navigate your site.
Malware even goes a step further by infiltrating your client’s personal device, like their computer or smartphone, to seek out other data to steal..
- Ransomware – This special type of malware is on the rise since it requires less people to carry out the plan of attack and usually demands payment via cryptocurrency (like Bitcoin) which creates challenges when trying to track the criminal source.
Ransomware is an aggressive, malicious software that downloads itself onto a victim’s computer or network then blocks the legitimate user from accessing the data until a bounty (or ransom) is paid.
- Phishing – In this case, predators send fraudulent emails to your clients which appear to be generated from your business.
Customers don’t hesitate to click on the malicious links within the email because they assume it’s coming from your e-commerce business.
- Man-in-the-Middle Attack (MITM) – This is when an attacker goes through your website to find client’s that are operating from an unsecured network.
Once the predator finds customers in this compromised situation they are then able to seize valuable personal data.
- DDoS Attack – A Distributed Denial of Service (DDOS) is when the criminal hacker focuses on infiltrating your e-commerce website or network and stealing stored data rather than trying to swipe client information.
How can cybersecurity insurance protect your business?
Cybersecurity insurance safeguards you against liability and costs due to the theft or loss of data and breaches of security as well as privacy.
Having a cybersecurity policy is helpful when you consider the average data breach for a small e-commerce business costs a minimum of $20,752. On the other hand, cybersecurity insurance premiums are minimal in comparison. For example, many small businesses pay an average of $750 annually for coverage.
Start a free application with TAiG to receive a quote for your e-commerce business.