When it comes to running an ecommerce business, there is plenty to juggle. Brand managers and ecommerce executives must constantly gameplan winning strategies to increase ecommerce sales, revamp their marketing funnel for maximum conversions, stay ahead of the competition using the latest tech to deliver personalized experiences, and optimize product pages for user engagement.
One thing most brand leaders don’t prioritize is their ecommerce security.
The e-commerce industry is a prime target for cybercrime activity, experiencing 32.4% of malicious attacks. Hackers are aware of online brands’ vulnerabilities and relentlessly exploit businesses for their own gain. While you focus on staying updated with the latest iOS updates or finding new ways to compete with Amazon and meet your most key performance indicators, don’t let security become an afterthought. You’re responsible for each shopper’s sensitive info, and if you get attacked, you’ll face not only hefty financial repercussions but also a significant blow to your brand’s reputation. Strengthening security measures alongside enhancing visual content strategy can further solidify your market presence by optimizing your product displays and boosting engagement.
And the problem isn’t diminishing anytime soon. Security incidents in e-commerce surged by an alarming 20% in 2020 for 69% of businesses surveyed in the 2021 Webscale Global E-commerce Security Report. Additionally, 78% of organizations reported experiencing at least one cybersecurity incident in 2020, and 72% of businesses indicated that security is their primary business challenge. To effectively address these challenges, developing a comprehensive e-commerce growth plan with integrated security is essential. Utilizing data-driven marketing within this framework can further enhance your ability to anticipate and mitigate risks, ensuring your business remains resilient in the face of evolving cyber threats.
Don’t let your ecommerce security initiatives be just another afterthought. Take action and learn the ins and outs of ecommerce security, how to stay compliant with the latest regulations, top ecommerce security threats, and the best practices you can follow to protect your customers (and your business).
What is Ecommerce Security?
Ecommerce security refers to the guidelines, protocols, and measures that are in place to establish secure and safe online transactions. It is important to focus on the following key areas to ensure you have sufficient ecommerce security:
- Privacy: Protecting customer data from unauthorized internal and external threats using firewalls, encryption, and other measures.
- Authentication: Validating users using unique credentials, such as usernames, login IDs, passwords, or email addresses. Criminals can impersonate users with weak passwords and login IDs, so brands can use multi-factor authentication to reduce authentication fraud.
- Nonrepudiation: Neither the business nor the customer can deny a transaction that occurred due to cryptographic evidence, such as digital signatures.
- Integrity: Ensuring that shared customer data is recorded accurately and unaltered. Inaccurately or purposefully manipulating shopper information will harm shopper confidence.
What is Compliance, and How is it Different From Security?
Compliance refers to industry and government policies that you must adhere to protect customer information. You can face financial and legal repercussions for not following compliance regulations.
Compliance policies are a part of ecommerce security, but it’s important to note that comprehensive customer protection may require additional security measures beyond the legal compliance regulations.
Standard compliance regulations ecommerce brands must follow include:
- Payment Card Industry Data Security Standard (PCI-DSS): Online businesses must follow PCI-DSS standards to process, store, and transfer cardholder data of shoppers.
- General Data Protection Regulation (GDPR): All transactions involving European citizens must follow strict regulations set out by the European Union to protect personal and private data.
- ISO (International Organization for Standardization): Protocols and guidelines to ensure the safety, quality, efficiency, and performance of products sold in an international marketplace.
- California Consumer Privacy Act (CCPA): Similar to GDPR, CCPA protects the consumer data and privacy of California residents, including the right to know how businesses collect their personal information and the right to opt-out of the sale or sharing of their data.
- SOC (Service Organization Control): The American Institute of CPAs (AICPA) developed the SOC reporting process to protect customer information from unauthorized access and to ensure transparency for how companies manage customers’ financial or personal information.
5 Common Ecommerce Security Threats
Hackers can use many tricks and schemes to threaten your ecommerce business and your customers’ accounts and data. To protect your shoppers, it’s essential to take a proactive approach, including installing anti-virus software, using an SSL certificate, regularly scanning your website, and, most importantly, implementing a comprehensive security policy and training your employees to recognize and monitor potential threats.
A strong defense begins with a proactive offense. Take the time to understand the mindset of hackers and familiarize yourself with their common security threats and attacks.
1. Phishing
Phishing attacks are when hackers try to steal a victim’s information by impersonating the company through email, text, or phone. They will try to trick the user into giving their private information, such as passwords, account numbers, and other sensitive data.
2. Structured Query Language (SQL) Injections
Hackers can manipulate standard coding language using rogue commands to gain access to sensitive info stored on your company’s database. Hackers can bypass a website’s authentication controls using SQL injection attacks, accessing data and even compromising the entire system.
3. Malware
Malware (malicious software) is a program or code that can damage a computer, network, or server once activated by a user. Hackers can use malware to steal customer data, gain backdoor access to systems, and spy on users. Malware can come in many forms, including adware, trojan horses, or ransomware.
4. Brute-Force Tactics
Hackers can use specialized software and botnets to hack accounts by guessing passwords until they find a winning combination. Once they access your customer database, they can exploit customer identities, bank account details, and other information and sell it for profit. Captcha challenges, two-factor authentication, and complex password requirements are the best way to prevent brute-force attacks.
5. DoS (Denial of Service) and DDoS (Distributed Denial of Service) Attacks
Criminals can shut down a website by flooding and spamming them with illegitimate traffic coming from anonymous IP addresses. Once a site is compromised with malicious traffic, regular users won’t be able to access your website. A DoS attack comes from a single source, while a DDoS attack involves multiple sources, making it more challenging to defend against.
10 Best Practices and Tips for Ecommerce Security
Get your security protocol in order and integrate our top 10 essential ecommerce security tips.
- Require Strong, Unique Passwords
- Keep Your Website Updated and Patched
- Backup Your Website Data
- Get an SSL Certificate
- Set Up a VPN (Virtual Private Network)
- Use a Secure Payment Processing Platform and Payment Gateways
- Install a Website Application Firewall (WAF)
- Require Multi-Factor Authentication (MFA)
- Audit Where You Download Plugins, Tools, and Applications
- Use a Content Delivery Network (CDN)
1. Require Strong, Unique Passwords
One of the best ways to prevent hackers from accessing your site is to require customers to use only strong and unique passwords. Poor passwords cause 81% of company data breaches. Protect your customers and your business by using the following guidelines and protocol for password creation:
- Require users to update and change their passwords every four months.
- Set up a reCAPTCHA to make logins more secure.
- Use passwords that incorporate a mixture of symbols, lowercase and capital letters, and numbers, with a character count of at least 15.
- Lock out users after 3-4 failed login attempts.
- Do not use default admin names. Shoppers must create a unique username that incorporates special characters and numbers.
2. Keep Your Website Updated and Patched
Make sure that you regularly install the latest software, app, plugin, and theme updates on your website. Set up automatic updates to proactively implement the newest updates. Developers regularly release security updates to patch vulnerabilities and fix bugs that hackers can exploit. Proactively installing the latest software and patches will also ensure your website’s performance won’t suffer.
3. Backup Your Website Data
Although backing up your website data won’t necessarily stop any security threat, it is essential if your business has suffered an attack. Information is frequently lost, corrupted, or even held hostage, so having backup storage of all your data will ensure you can minimize the damage. Set up automatic backups or manually backup your data every three days, ideally every day.
4. Get an SSL Certificate
An SSL (Secure Sockets Layer) certificate is a security protocol required for all ecommerce businesses under PCI compliance. Once you purchase an SSL certificate from a Certificate Authority, your website URL will start with HTTPS instead of HTTP. The ‘S’ stands for secure because HTTPS encrypts all information on your online store. Google also penalizes websites without an SSL certificate, so install it as soon as possible.
5. Set Up a VPN (Virtual Private Network)
A VPN helps create a more secure connection so that you can send over data through unsecured networks on the internet. VPNs protect corporate networks and allow remote workers to connect to a company network without security risks. They also safeguard information integrated into an Enterprise Resource Planning (ERP) system.
6. Use a Secure Payment Processing Platform and Payment Gateways
Payment processing platforms protect all financial information for each online transaction, preventing hackers from intercepting transactions. Use multiple payment gateways to authorize online purchases, such as PayPal, Google Pay, and Apple Pay. Payment gateways use a variety of tactics to protect transactions, including:
- Data Encryption: Public keys encrypt customer payment information and prevent unauthorized parties from accessing data.
- Tokenization: Replace payment information with random characters. Decryption keys are used to track tokens, so if a breach happens, hackers can’t read them.
- Secure Electronic Transaction (SET): SET cloaks credit card details during an online purchase transfer, so hackers can’t access information.
7. Install a Website Application Firewall (WAF)
Firewalls block suspicious traffic and monitor all incoming traffic. A WAF protects your website from XSS, SQL injections, forgery attempts, brute force attempts, and reduces the risk of DoS and DDoS attacks. Website applications are one of the biggest vulnerabilities that hackers can exploit to access valuable data. WAFs are essential to block a multitude of attacks that attempt to exfiltrate site information.
8. Require Multi-Factor Authentication (MFA)
MFAs require entering one-time passcodes, answering security questions, or using a fingerprint to confirm a login attempt is secure and legitimate. MFAs prevent more than 99% of attacks and cyber threats.
9. Audit Where You Download Plugins, Tools, and Applications
Hackers can install malicious codes within illegitimate apps and plugins to compromise your website. Some plugins may also not be up-to-date or legitimate, making your business more vulnerable to attacks. Monitor and review your third-party integrations and remove outdated ones to minimize threats.
10. Use a Content Delivery Network (CDN)
A CDN is essential for ecommerce brands that serve a global market. It stores a cached version of your content on multiple locations or points of presence (PoPs). It not only makes sites more secure but helps website response time and function for sites that experience significantly high traffic.
Essential Tools for Safeguarding E-commerce Data
In e-commerce, the task of safeguarding customer information is as vital as it is challenging. Employing the right tools can turn this challenge into a stronghold, shielding sensitive data, deterring cyber threats, and fostering trust. Here’s a lineup of critical tools that every e-commerce business should deploy to fortify its defenses and ensure secure, seamless online interactions.
- SSL Encryption
- Web Application Firewall (WAF)
- Virtual Private Network (VPN)
- Anti-Malware Software
- Secure Payment Gateways
- Multi-Factor Authentication (MFA)
- Routine Security Audits and Vulnerability Scans
SSL Encryption
SSL Encryption is the unseen guardian of online transactions, establishing a secure channel between a customer’s browser and the server. By encrypting sensitive details—think payment info and personal data—SSL prevents interception. The appearance of HTTPS in a URL signals to users that they’re in a safe zone, enhancing trust and reinforcing security with every click.
Web Application Firewall (WAF)
A Web Application Firewall (WAF) is your website’s bodyguard, filtering out risky traffic and blocking harmful requests before they reach sensitive areas. WAFs neutralize attacks like SQL injections and cross-site scripting (XSS) and can even absorb surges in malicious traffic from DDoS attacks. In short, WAFs keep the fortress strong and the doors locked.
Virtual Private Network (VPN)
A Virtual Private Network (VPN) encrypts data flowing over internet connections, creating a private tunnel for remote access. Especially crucial for employees and partners working off-site, VPNs protect sensitive data from prying eyes and make sure confidential information remains out of reach—even on shared or public networks.
Anti-Malware Software
Anti-Malware Software is the vigilant sentinel scanning for and eliminating threats that might disrupt operations or expose data. Malware is like an unwelcome guest, infiltrating systems, corrupting data, and wreaking havoc. Anti-malware tools ensure the virtual perimeter is secure by detecting and dismantling these threats before they can cause damage.
Secure Payment Gateways
Secure Payment Gateways combine encryption with real-time fraud detection, protecting financial data during transactions. These gateways prevent unauthorized access to payment details through tokenization and dynamic fraud-monitoring systems. Each payment transaction processed safely reinforces user trust, encouraging repeat visits and conversions.
Multi-Factor Authentication (MFA)
Multi-Factor Authentication (MFA) turns logins into locked doors, requiring multiple keys before granting access. With MFA, users must pass more than just a password check—often entering unique codes or completing biometric scans—making unauthorized entry nearly impossible. This multi-layered security makes account breaches a rarity.
Routine Security Audits and Vulnerability Scans
Routine Security Audits and Vulnerability Scans are proactive defenses, uncovering potential weak spots before they’re exploited. These checks keep security measures relevant and robust, allowing e-commerce sites to tighten defenses and counteract evolving threats. Regular scans and audits turn maintenance into a masterful defense strategy.
Integrating Proactive Cyber Defense Tactics
To counteract a diverse range of cyber threats, a layered security strategy is essential. The following tactics help e-commerce businesses build a robust security foundation:
- SSL Encryption: Ensures data remains secure during transmission, shielding sensitive information from interception.
- Multi-Factor Authentication (MFA): Adds verification steps, reinforcing account security.
- Regular Security Audits: Proactively identifying weaknesses through audits keeps defenses strong and adaptive.
- Web Application Firewalls (WAF): Monitors and filters site traffic, blocking threats before they reach the server.
E-commerce Security: Real-World Breaches and Lessons
E-commerce platforms face constant cyber threats, and recent breaches reveal the high stakes for protecting customer data. These incidents expose system vulnerabilities and provide crucial lessons for strengthening e-commerce defenses.
- Target Breach (2013)
- Home Depot Breach (2014)
- Alibaba Data Exposure (2019)
- Marriott Breach (2018)
- MyFitnessPal Breach (2018)
- Honda API Flaw (2023)
- Magecart Attacks
Target Breach (2013)
In 2013, attackers gained access to Target’s systems by exploiting vendor credentials, impacting millions of payment accounts. This breach underscored the risks of third-party access and the importance of securing every link in the network chain. The aftermath was both costly and reputationally damaging, illustrating the lasting effects of insufficient vendor security controls.
Home Depot Breach (2014)
A year later, Home Depot faced a similar breach when attackers placed malware on self-checkout terminals, capturing vast amounts of card data. This incident stressed the need for heightened security around point-of-sale systems, highlighting that even on-site devices require vigilant monitoring to prevent stealthy data theft.
Alibaba Data Exposure (2019)
In 2019, a developer exploited Alibaba’s platform to scrape user data, sparking concerns over data handling and privacy. This incident underscored the risks of insufficient data access monitoring and the potential for misuse. It served as a pivotal reminder for platforms to tighten access controls and vigilantly oversee data interactions.
Marriott Breach (2018)
Marriott’s 2018 breach illuminated the hidden dangers in merging systems without rigorous security evaluations. Attackers leveraged vulnerabilities in Marriott’s acquired reservation system, exposing millions of guest records. This incident drove home the need for thorough system vetting and integration protocols when companies join forces, showing that acquired systems can harbor unseen risks.
MyFitnessPal Breach (2018)
In 2018, MyFitnessPal, a popular app, experienced a breach that exposed user accounts, raising serious concerns over data security in mobile applications. This incident highlighted the need to safeguard not just usernames and encrypted passwords but also account privacy. It showed that even fitness apps, handling data beyond financial information, must prioritize user protection.
Honda API Flaw (2023)
In 2023, Honda discovered a flaw in one of its application interfaces, exposing certain account details to unauthorized access. This event spotlighted the importance of API security and the need for rigorous testing to prevent breaches. Honda’s experience emphasized the necessity for continuous monitoring and proactive patching in API management.
Magecart Attacks
Magecart groups, known for injecting harmful code into checkout pages, continue to compromise customer data in real-time by targeting vulnerable third-party scripts. These attacks highlight the risks of insufficient security for third-party integrations and the critical importance of safeguarding payment points. Magecart’s success in accessing sensitive information has made it a pressing concern for all e-commerce platforms.
Frequently Asked Questions (FAQs)
What are the main sources of threats in e-commerce?
E-commerce threats primarily come from external hackers, malicious software, and unsecured third-party integrations. Internal threats, like untrained employees or weak internal security practices, can also expose vulnerabilities.
What are the top three security issues to consider when implementing e-commerce systems?
The three primary issues are data protection, compliance with industry regulations (like PCI-DSS and GDPR), and safeguarding against cyber threats like phishing, malware, and brute-force attacks.
What is the biggest problem with e-commerce?
One of the most pressing challenges in e-commerce is protecting sensitive customer data from cyber threats. As online shopping grows, the risk of data breaches and financial fraud becomes a top concern.
What is a primary concern in e-commerce security?
Data protection is a key concern, as businesses are responsible for safeguarding customer information, such as payment details and personal data, from unauthorized access and cyber-attacks.
What are the three main concepts in e-commerce security?
E-commerce security revolves around three essential concepts: privacy (protecting customer information), integrity (ensuring data is accurate and unaltered), and authentication (verifying the identity of users).
What are the specific security threats in M-commerce?
M-commerce (mobile commerce) faces unique threats, including unsecured mobile networks, device theft, and malware targeting mobile apps. Ensuring app security and data encryption is critical in M-commerce.
How many major risks are associated with e-commerce and its security?
While the number of risks can vary, major risks generally include data breaches, financial fraud, and compliance failures. Addressing these risks requires a robust, multi-layered security strategy.
Stay Secure and Migrate on Our Enterprise Ecommerce Solution With No Upfront Costs and Go Live in Under 60 Days
The best way to protect your business is to migrate to an enterprise platform managed by some of the top ecommerce specialists in the world. The larger you grow, the more likely hackers will target your business.
Our Commerce-as-a-Service (CaaS) approach is an all-in-one ecommerce solution that helps brands achieve the same level of sophistication and selling power as major enterprise competitors. We empower brands with advanced super modules and proprietary technology that extends the capabilities of Shopify Plus, supercharging it with market-leading functionality that outperforms against legacy enterprise platforms.
We also offer a-al-carte expert ecommerce services for brands who don’t want the full CaaS package. Here are some of the main benefits you can expect using our Intelligent Commerce solution:
- Our headless ecommerce solution features AI-powered customer segmentation, algorithmic merchandising, and smart promotion optimization to enhance your customers’ online shopping experience with personalization tactics that convert.
- Access 40 enterprise-level tools and features that improve conversions and lower marketing spending, shipping, and returns.
- Replatform to a superior enterprise platform solution without replatforming fees and go live in just six weeks.
- Use our pre-integrated frontend theme called Luminate, which includes the best Shopify apps along with partner integrations and exclusive features developed specifically for Intelligent Commerce. Our dedicated site optimizers are constantly working to improve each integrated app, leveraging insights gained from managing over 150 brands and $1 billion in total gross merchandise value (GMV) over the past decade.
- True global enterprise ecommerce to reach and convert international customers.
- Our 3PL ecommerce fulfillment solution will lower your shipping and returns costs.
- Plug into our enterprise ecommerce technology with NO upfront costs!
Nogin is a different approach to enterprise ecommerce, and the results speak for themselves:
- Conversion rates improve an average of 40% on our platform.
- Marketing spend efficiency increases 30% with our CDP.
- Increased personalization drives a 15% increase in revenue.
Grow faster, spend less, and access enterprise ecommerce with no upfront costs with Nogin. If you think your brand is a right fit, schedule a convo with us! If you want to learn more about the Nogin difference or check out more of our expert ecommerce content, click on an article below:
Why Choose Nogin?
