5 Ways Cybercrime Harms Ecommerce

Cybercrime is a real threat to anyone doing business online. Target, Home Depot, Eddie Bauer, and Vera Bradley are among many retailers that have been hit by cybercrime in recent years. But your business doesn’t have to be a nationally recognized brand to feel the effects of cybercrime.

Today, retailers are the victims of the most cyber attacks of any industry. Small ecommerce stores are not immune from cybercrime either. One Dutch researcher found that 6,000 ecommerce stores were compromised by a JavaScript code meant to “skim” customer payment information in the span of a year.

As an online entrepreneur, you need to learn how to set up an ecommerce site that is safe and secure for your business and your customers. Here are the common ways cybercrime harms ecommerce businesses:

Stolen Data

Perhaps the first thing consumers think of when they hear the term cybercrime is the risk of their personal data being compromised. Cyber criminals often steal data such as credit card numbers and other information from insecure retailers. Hackers then use this information to commit fraud or sell the information to others who’ll commit fraud.

Your customers are trusting you with their personal payment information. Make sure you have proper, up-to-date security measures in place to protect against data theft.

Fraudulent Purchases

Fraudulent purchases are transactions that are unauthorized by the credit card owner by a third party. These purchases may be due to a lost or stolen credit card, or an otherwise compromised method of payment. Keep an eye out for extra-large orders, orders from unordinary geographic regions, and shipping addresses that don’t match billing addresses. These are signs of possible fraudulent actions.

Social Spoofing

Social spoofing happens when a cyber criminal poses as an authoritative body in order to convince a consumer to reveal personal information. The criminal uses social influence to get the information they want.

For example, a spammer may send a message to a customer pretending to be their bank. In the message, they may request personal information such as usernames, passwords, credit card numbers, or other data. The consumer then shares this information with the belief they are speaking with their bank when in fact they are not.

If a customer ever contacts you regarding a message you never sent, you may be the target of a social spoofing attack.

DDoS Attacks

A distributed denial of service (DDoS) attack uses large amounts of traffic from multiple sources in an attempt to make an online service unavailable. The target is flooded with superfluous requests in order to overload systems and prevent legitimate requests from being fulfilled.

Basically, DDoS attacks can shut down an ecommerce website from processing any transactions, because the system is overloaded with illegitimate requests. While banks and other high-profile entities are more often the victim of these attacks, it’s possible for DDoS attacks to target any web server.

Loss of Customers

Cybercrime results in all kinds of headaches for businesses, but ultimately it leads to a huge loss of customers. About 19 percent of American consumers surveyed said they would stop shopping at a retailer that had been a victim of a cybersecurity attack. Many companies affected by cybercrime are unable to regain the trust of their customers, and their business is put in jeopardy.

How to Protect Your Ecommerce Business

The best defense against cybersecurity issues to fully comply with Payment Card Industry (PCI) security standards. These standards outline up-to-date practices to guard your business and your customers against cyber threats.

Also, make sure you work with a trusted payment processor. Giving your customers the option to use a service like PayPal to purchase your products creates an extra level of protection for them and your business. 

Source: www.ehacking.net
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