5 Types of E-Commerce Data Breaches (+ How to Prevent Them)

One of the biggest e-commerce data privacy issues remains data breaches, with an average of more than 130 security attacks per organization annually. Data breaches are also becoming costlier, with the average cost of a data breach in the U.S. at a steep $9.44 M.

E-commerce is particularly precarious when it comes to data breaches. With mobile threats increasing and hackers becoming more sophisticated, online businesses must take proactive measures to prevent data breaches and minimize the damage when they occur.

Below, we’ve highlighted the most significant threats along with prevention measures you can implement.

» Inexperienced with data privacy? Consult this guide to data privacy in e-commerce

1. Stolen Information

Stolen information typically involves hackers attempting to steal your customers’ credit card information or personal details. This data breach affects your online store when hackers can intercept transaction details during the checkout process. Alternatively, stolen information can result from human error, such as an employee leaving sensitive information or trade secrets unsecured.

How to Prevent Stolen Information:

• Strong encryption: Keep customers’ credit card information safe once submitted.
• Two-factor authentication: Confirm it’s really the customer making the transaction.
• Educate your customers: Teach customers how to recognize phishing attacks to encourage vigilance from their side.

2. Password Guessing

During this type of data breach, hackers repeatedly attempt to guess login credentials or answer security questions correctly to get access to the relevant account.

Some employees and customers make the grave error of leaving passwords for their computers/accounts on notes or using the same password for multiple accounts. Passwords themselves may be too easy to guess, making it too simple for hackers to gain access to private data.

How to Prevent Password Guessing:

• Additional identity confirmation: Implement two-factor authentication or biometric logins whenever possible to confirm a customer’s identity before completing a transaction.
• Strict password policies: This goes for both customers and employees. Set minimum password requirements customers and employees must meet when they open an account. Additionally, regularly audit employee accounts to ensure they’re secure.

3. Keystroke Logging

Keystroke logging, also known as keylogging, occurs when hackers use specialized software to track and record every keystroke on a computer or device, allowing them access to confidential details such as credit card information, banking details, and login credentials.

How to Prevent Keystroke Logging:

• Two-factor authentication: Add another layer of security by confirming a customer’s identity and intention to perform the relevant transaction.
• Utilize relevant prevention software: Using key encryption software or anti-malware programs can protect customers and employees.

4. Phishing Attacks

Hackers conduct phishing attacks when they send fake emails or messages to your customers, disguising themselves as your company in an attempt to trick customers into providing sensitive information or downloading malicious software.

How to Prevent Phishing Attacks:

• Clear email policies: Implement strict policies for employees about opening email attachments or suspicious links. Also consider using strong spam filters.
• Communicate with your customers: Educate customers on how to recognize a phishing attack and how to react. Encourage them to report suspicious communication so you can investigate.

5. Malware/Virus Attacks

Malware and virus attacks refer to hackers infecting your website or network with malicious software, giving hackers access to your information. From there, hackers can wipe out your data or install ransomware to block users from accessing your site (i.e., holding the data for “ransom”).

How to Prevent Malware and Virus Attacks:

• Implement comprehensive security protocols: Place strong encryption programs on all devices (e.g., firewalls, SSL certification) and regularly scan your website for any signs of suspicious activity.
• Invest in anti-virus and malware software: Preventative software can work on both employee and customer levels to add additional security.

Prevention Is Better Than Cure

Being proactive by taking steps to protect your customers’ and employees’ sensitive information is non-negotiable. But what happens if a data breach occurs anyway? Make sure you have a data breach response checklist in place. Being organized will help you react quickly and minimize damage, not only from the hackers but making sure you comply with all relevant data privacy laws.

Consider partnering with a data privacy solution to simplify the complexities of data security and assure customers their information is protected.

» Worried about data breaches? Discover how PieEye’s data breach protocol can help