Security Issues with Online Business Transactions & How to Avoid Them

Online shopping is getting more popular in the present because it is fast and convenient. Many people don’t like to visit a physical store since it is time-consuming. On the other hand, from an e-commerce store or online shop, customers can easily purchase their products using a price filter and sort out options. 

But there are also some risks in online shopping. It is because people can often become the target of fraud and criminals when doing online shopping or transactions. And it is the responsibility of the shop owners to protect their customers from this type of risk.

In this blog, we will discuss the security issues in e-commerce or online business transactions and how to handle those.

What Are the Biggest Security Threats in Online Transactions?

There are several cybersecurity and safety risks that can impact the online business and its customers. Some of those include the following:

1. Malware & Phishing Attacks
Malware is software or programs that cybercriminals use to steal sensitive information from their target. Sometimes, criminals also send emails with a link to a list of addresses. When someone clicks on those links, they are directed to a website or app that can also steal information from a user. 

2. Credit Card Skimming & Payment Fraud
Card skimming is a technique that hackers use to grab card details. They can either duplicate a checkout page or insert harmful code into it. It allows them to collect the credit card information from online customers. 

3. Identity Theft & Account Takeover (ATO)
Some criminals can log in to accounts by exploiting weak passwords. They can also create custom tools to steal account credentials or use brute force attacks to gain access. By using these techniques, they can make purchases from the customer’s account. 

4. Data Breaches & Poor Encryption
In some cases, data theft or breaches can occur due to poor security practices of an e-commerce website. For example, it can happen when a website fails to encrypt its customer data before sending it to a server. It can also happen if a website doesn’t update its system or use safety measures such as SSL/TLS for online transactions. 

5. 3rd-Party Plugin Vulnerabilities
Some e-commerce site builders or platforms can have plugin or add-on vulnerabilities. The cybercriminal can utilize those to hack an account. It is important to use a secure plugin from a trusted provider to avoid these types of safety issues. 

6. Insecure APIs & Backend Systems
APIs are a type of software that establishes database interaction with the front-end, or user interface, of a website. Some hackers also use API or backend vulnerabilities to steal private information from online shoppers.

10 Proven Ways to Avoid Online Transaction Risks

There are multiple strategies cybersecurity experts or IT professionals use to protect a website. E-commerce or online store owners can use those to secure their website. 
Some of those techniques include the following:

1. Implement Multi-Layered Security
Cybercriminals in the modern day use advanced techniques to break into a website. E-commerce website owners should use multiple measures to protect their platform. They should use techniques like firewalls, endpoint protection, and web application firewalls (WAF). 

2. Enforce HTTPS with Valid SSL/TLS
There are data transfer protocols, which are used to transfer data securely. A website must include these protocols, especially for activities like logins and checkout. It can reduce the safety risk of online shopping significantly. 

3. Comply with PCI-DSS and Local Regulations
There are security standards and regulations that websites need to comply with for secure payment handling. For example, PCI-DSS regulation protects customer information and payment card details from being leaked. 

4. Use Secure Payment Gateways
Website or e-commerce store owners need to use a third-party service for accepting payments. Some companies that provide payment gateways for e-commerce transactions are Stripe, PayPal, Ayden, etc. An online shop should use a well-reputed and secure payment gateway for its website for safe online transactions. 

5. Educate Employees and Customers
Customers often become the victims of online scams if they lack knowledge of cybersecurity. So businesses should create useful resources to educate their customers. They can publish guides, blogs, and newspapers to create awareness about the latest security issues. They should also train their staff to identify and respond to suspicious activities on their websites. 

6. Require Strong Passwords + MFA
It is essential to use a strong password and a secure login method to stop account hacking. Websites should set specific rules for creating passwords so that customers can’t use weak passwords or reused credentials for sign-up. They should also add two-factor authentication to strengthen their online security. It is a system where users need to provide multiple login credentials in addition to their password. It prevents unauthorized access to an account even if the passwords get leaked. 

7. Regularly Audit 3rd-Party Plugins
E-commerce sites or platforms often need third-party plugins or add-ons for their website. These tools should be regularly updated to keep a website secure. It will keep their site secure from cyberattacks and also prevent sudden shutdowns. 

8. Use Fraud Detection Systems
There are tools that can detect fraud attempts by analyzing patterns, such as Signifyd or Kount. These tools can identify suspicious activities and block them in advance. It protects a website from hackers before they can take control. 

9. Data Minimization
Data minimization is a technique of storing less data in the database. It can be very useful against data breaches. E-commerce websites can tokenize the login system and store less data in their system. So that the criminals can’t access sensitive information from their platforms. It is also a smart technique to avoid legal consequences caused by data breaches. 

10. Create a Breach Response Plan
A platform can have security breaches even after following all the best practices discussed above. So it is essential to have a solid response plan and data backup to keep damage under control. There should also be a disclosure about the limit of liabilities in the plan. It will make the customers alert about sharing sensitive information on the website. 

Real-World Breaches and Lessons Learned

Cybersafety issues can cause serious damage to a business. They can lose the trust of their customers and pay massive amounts of money as fines or penalties. 

Here is an example of a type of scam: 

Shopify Stores: Fake Checkout Page Scams

Shopify stores can often be the target of fake checkout page scams. In this type of scam, criminals create a fake checkout page of a Shopify website that looks like the original one. Customers often visit this page and share their transaction details, and the hackers collect that information. 

This type of scam not only impacts the customer but also the business. A merchant can lose their reputation and even need to handle legal issues from this kind of scam. 

Key Lessons

Even though Shopify itself provides strong infrastructure, fraudsters continue to exploit its ecosystem. The lessons are clear:

• Fake checkout pages remain one of the fastest-growing e-commerce security issues
• Businesses must monitor for cloned sites and protect their brand against fraud.
• Customers should always check URLs and use trusted gateways to ensure payment security for online shops.

Checklist: Is Your Online Business Secure?

The fastest way to spot weak points in your store is with a simple checklist. Ask yourself these questions to see how prepared you are. If you answer “No” more than once or twice, it’s time to strengthen your defenses.

Conclusion

Staying aware of cyber threats is very important for businesses that handle online transactions. The customer can lose their trust in a business if it fails to protect their data and account. There are effective measures that can reduce the cyber safety risks. A business can follow those to protect its reputation and customers. 

Need help securing your business website from scams and cyberattacks? Usherwood provides trusted IT solutions and security services to protect your business. Request a security audit today to find out.