Cybersecurity in the E-commerce/Payments Industry
The rampant economic effects of the COVID-19 pandemic in 2020 have slowed down the growth of countless industries. Lockdowns and contactless protocols forced companies to limit operations and scramble for ways to keep the operations afloat. Many of them efficiently transformed their business models into a hybrid of in-store and online transactions, making it easier for consumers to engage with the brand despite the global health crisis.
This resulted in the further rise of e-commerce in the retail sector. Numerous individuals now rely more on digital platforms to purchase various goods and services from the comfort of their homes. In 2021, e-commerce transactions accounted for more than 19% of the global retail industry, a staggering 3% increase from the pre-pandemic years. And it is still expected to grow in succeeding years, with e-commerce platforms becoming a necessity in the new normal.
The imminent growth of e-commerce companies makes the sector more attractive to fraudsters. The industry has always been a constant target of swindlers looking to perform fraudulent activities using various confidential customer data. Annually, small and medium enterprises (SMEs) lose an average of more than $2 million, resulting in significant impairment with investors and consumers.
Data breaches are one of the most prevalent forms of cyberattacks in many industries. Classified data like credit card numbers and account PINs are always at risk during online transactions. This is because fraudsters use a mix of sophisticated and traditional tricks to get the information they need, such as phishing, remote access vulnerability, and malware.
Implementing robust cybersecurity measures has been a top priority for countless organizations in recent years. Solid security processes will make the industry less enticing for swindlers. Numerous solutions were introduced in the past decade, including the use of biological data for identity proofing.
FIDO2 biometric authentication is highly-secured, mainly because the system uses something that the customer is. The biological data are stored and encrypted to the account, ensuring that the person trying to log in or make a transaction is the legitimate client. In addition, many enterprises also invest in digital signature APIs, which authenticates signatures used in commerce.