E-commerce is prone to several issues that can be due to human error, unauthorised access to systems, hacking, inefficient programs and lack of information security. Online frauds residing in this industry include; identity theft, credentials stuffing, phishing attacks, data breaches, and credit card fraud.
Other than this, cybercriminals conduct buffer overflow attacks, malicious executables injection, DDoS and man-in-the-middle attacks. Most of these are due to unauthorised access over confidential data, which can be reduced by identifying each entity that is connecting to your web server.
These frauds can be prevented by using biometric sign-in over user accounts so that fraudsters do not easily takeover the user account.
Identity theft in the e-commerce industry is getting common. Fraudsters are roaming over the network and find out loopholes in e-commerce websites. They conduct account takeover fraud and steal the personal and financial information of customers.
This information is then used for malicious purposes. For instance, the fraudster uses fake identity for money laundering and terrorist financing just to disguise the ownership and hide its real identity. Moreover, the credit card information is stolen to perform transactions to buy goods for free.
To solve this, there should be authorised access over the user accounts that could be achieved through a biometric authentication system.
Distributed Denial of Services (DDoS)
A cyberattack that corresponds to taking down the e-commerce website by overwhelming the servers with a bunch of requests at the same time. The serves as results fail to entertain each request and customers get bad user experience as their connection request is not considered.
The server slows down or sometimes it shut down. With the DDoS attack, the e-commerce website temporarily stops responding to customers.
Credit Card Fraud
Another common security threat in e-commerce. It happens when a fraudster gets access to the customer’s credentials. They use the credit card of the customer and as the website lacks credit card verification, fraudster gets successful in using that money.
To solve this issue their are several fraud preventing tips for your E-Commerce business, e-commerce sites should take in place ID validation through a credit card before allowing the user to perform transaction.
In terms of information security, malware refers to malicious executables that are stuffed into the memory of systems. These are malware software programs that reside in the memory where the next instruction for an online website is supposed to run.
After a successful injection into online systems, the e-commerce website starts running according to the customer’s desire.
Fraudsters redirect legitimate customers through malicious links to fake websites that look exactly like e-commerce but are not more than a clone.
They ask the user to enter username and password, from there credentials are stolen which fraudsters use on real websites and take over the account. Similarly, email phishing attacks are performed in which fraudsters send users fake emails using name of the e-commerce website.
These emails have malicious links and consent forms that when user feed with personal details gets hacked from a real website. In this way, customers who are unaware of these tricks compromise their personal and financial details.