E-Commerce Security: The Importance of Encryption against Cyber Attacks
E-commerce security is about making sure that measures are taken to protect customers against cyber attacks.
For an e-commerce website, it takes huge effort to be at the top list of customer’s choice. However, all the hard work could go in vain if they don’t put the required effort on cybersecurity. Henceforth, an e-commerce company must understand the importance of security and harness the endless benefits derived out of it.
E-commerce is a type of commercial transaction that is executed electronically by the use of a computer, smartphone and a tablet over a network called web. E-commerce constitutes the exchange of information between the parties via email, fax transmission and virtual money transfer through PayPal, Skrill, Neteller, etc. The e-commerce platforms allow easy admission of shoppers to perform a self-service purchasing. It offers real-time transactions across a wide geographical region round the clock. The very concept of cybersecurity is based on the practices of preventing unauthorised access to internet-connected devices, confidential information, data and network in order to exploit it or harm the brand name. Put it simply, cybersecurity is designed and meant to prevent cyber attacks to maintain the confidentiality of important data, seamless business operation and commercial integrity.
The frequency and sophistication of cyber attacks have skyrocketed in recent years. E-commerce security is all about making sure that the measures are taken to protect the business and customers against malicious attacks online. According to a recent survey, some businesses have lost more than US$ 5 million only in stolen data while others ended up losing over US$100 million on other kinds of attacks. Henceforth, the point is that cybersecurity is a topmost business priority to consider in today’s time when cyber crimes are on the rise. GlobalTech Outlook brings you a list of reasons on why it is important for e-commerce firms to remain alert and proactive all the time, ensuring the security system.
Facing legal problems
A security breach is not just about losing customers and paying a ransom to the attackers to get back the information. It gets too hectic on the legal ground. Cyber attacks generally lead to money loss from customers pulling away, as well as investors withdrawing support. If the customers wish to hold the e-commerce firm accountable for security breaches, they are fully within their rights. Many times, companies are legally forced to compensate customers despite spending on the ransomware attack. Furthermore, if the company deals with discreet business such as adult entertainment, they might be liable for the damages caused by names being leaked. Countries like Singapore have stricter rules for e-commerce and customer’s privacy. Henceforth, it is important to have an encrypted solution that shields customer details from getting hacked.
Reducing customers churn
The ultimate goal of e-commerce firms is to secure a loyal status in the customer’s heart. No one comes to a website that cheated or lost their information to cybercriminals. A loyal customer is invested in a brand, just as the company is fully invested in the consumer. Creating a foundation of trust with consumers is essential to reducing churn. It is remarkable to see most of the customers go for platforms that are transparent on how much data they collect from the customers and where it is being used. Making data privacy a priority will help to secure trust and convert customers into brand advocates.
Training employees for the worst
Cybersecurity training and emphasizing the importance of being vigilant to recognize threats is critical to the infrastructure of e-commerce firms. Employees should be sensitized and educated every now and then on increasing cyber attacks and the ways to stop them. Ultimately, a lot of security breaches start at an employee’s end. Henceforth, it is the need of the hour to make employees ready to act real-time on cyber issues.