E-commerce Security Issues

Man thinking while holding credit card before laptop
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Some people still hesitate to use their credit card for payments online. They also tend to run away when prompted to share bank details on a website. This fear exists for many, despite our modern society requiring credit card online on many occasions. In fact, many people don't have a bad experience with online credit card payments at all, yet still, proceed with caution.

Financial Fraud Online

One of the primary sources of fear amongst general folk is that that fraud seems to be everywhere. When we hear websites from some of the best of companies getting hacked, it's easy to raise an eyebrow. For example, Sony and Google, two of the largest tech giants, both have been targets of hacking. If these huge companies cannot protect themselves, how can we? Fear of online fraud is very legitimate.

In fact, one could say that fraud is always among us. Be it the constant flow of emails from a Nigerian general who would like us to help him get to a large fortune, or phishing emails that try to get you to share bank account details or email passwords, fraud is, sadly, commonplace. Although our society is learning how to develop ways to prevent these blatant criminal attempts, there is a relentless underlying worry that someday it will happen to you.

Thankfully, the laws in some countries regarding intellectual property as well as online fraud are stringent and quite well established. However, there are cases in which the fraud originates from a territory that is well known for just the opposite. This begs the question about which courts would approach in such a situation.

Security Flaws

Security is the main concern when it comes to e-commerce. Since financial transactions are the backbone of e-commerce, if not the entire purpose of it, any hesitation on the part of the customer when it comes to making online payments could spoil the e-commerce party. 79% of Americans shop online, according to a 2016 study from Pew Research.

One large issue relates to the problem of anyone being able to spring a security leak. It is not just about an e-commerce website getting hacked– the fire could start in any corner. Hacks can take place via the payment gateway, user-computers infected with malware, or a shopping cart software provider that is exporting vulnerability into your environment

The Solution

The use of SSL (Secure Sockets Layer) or two-factor authentication are two large ways to help make the web a more secure place to create transactions. Regardless, technology is not the final solution. Because security issues in e-commerce threaten to derail a sunrise industry, developers, business owners, governments, payment processors, and users must participate in making the Internet more secure.