Whether you are new to the e-commerce world, or have been in business for a long time, it is important that your company is protected online. According to the 2022 Cost of a Data Breach Report by IBM and the Ponemon Institute, the average cost of a data breach is about $4.35 million dollars. This takes into account legal costs, regulatory costs, and loss of brand equity and customers. It’s enough to put a small business out of business…forever.
Is Your E-Business Prepared for a Cyber Security Attack?
E-commerce businesses are particularly at risk to threats and cyber-attacks since all of their transactions occur online. A survey by CloudBees found that 93 percent of executives are prepared to deal with a ransomware issue or cyberattack. However, 45 percent admit their security software is not sufficient to handle a cyber attack and 64 percent would not know who to contact first if their website was attacked. If your business does not have a plan of action regarding cyber-attacks, it is time to put one in place.
Types of Cyber Security Attacks
The following are ways that your e-commerce company’s security could be compromised:
Malware: Malware is dangerous software that infects a company’s devices and steals data or causes damaged. This can be transmitted through email attachments, visiting websites, or access to the actual device.
Ransomware: When a hacker encrypts a company’s data and demands a ransom to correct it, it is referred to as a ransomware attack. These can be very costly when the ransom and any damage control afterwards is considered.
Spam: Spam are unwanted emails that are sent en masse to company employees. These emails may contain malware or links to malicious websites.
DDoS: A DDoS or Distributed Denial of Services happens when a company’s server is overloaded with requests from hackers. This type of activity can crash the entire website.
Phishing: Phishing tricks employees into clicking on links or attachments in emails or text messages which then can install malware or steal information.
Since there are so many ways that an e-commerce company can be attacked, it is imperative to safeguard your company against a security breach.
How to Improve E-commerce Cybersecurity
Most companies could benefit from making improvements to their security processes. There are multiple solutions that can help ensure that your business is protected.
Data Protection: Data is at the center of every business transaction. All online data must be secured so that it is not compromised or leaked. The equipment used can help to determine what resources are needed to create a highly secured connected system as a less secure data system can make a cybersecurity attack easy. A system that is connected to the public internet requires a higher level of security since it is easy to find and attack while a system that is isolated from other networks has a much lower risk of a security issue.
Backup Data. Because data is so important, it should be backed up regularly to make sure it is not lost in an attack. When data is backed up, all of the information is hosted off-site, so even if the company’s devices are compromised, the data can be recovered.
Educate Employees. Employees should be made aware of how to identify cyber security threats, and what to do if they suspect their device has been compromised. Internal employees should be trained on security procedures, such as securing passwords and maintaining current anti-virus software. Routine training can help protect against security breaches.
Use Strong Passwords. The responsibility of keeping customers’ information safe lies with the online retailer. Ask customers to add special characters, symbols, and numbers when creating a password. Strong passwords are an easy way to protect a company’s information internally as well. Employees and upper management should change their passwords regularly to avoid a hack.
Use a Secure E-commerce Platform. E-commerce websites should only be hosted on certain platforms. One that supports sophisticated object-oriented programming languages is ideal. There are many options for platforms that integrate easily but offer high security. A strong SSL (Secure Sockets Layer) authentication for web and data protection will ensure the security of all online transactions. A third-party will not be able to understand the information due to the encryption. It also helps the customer trust in the website’s security.
Take a Complete Approach with Insurance. Layering security is a good way to keep an online business safe from cyber attacks. A complete process approach is necessary to handle cybersecurity threats. Prevention, detection, containment, and recovery are all important parts of the process. Most importantly, getting the proper cyber insurance in place will protect your business from any cyber related risks. Cyber insurance coverage can help you recover faster if you are a victim of a security breach. There are several options that can cover everything from the removal of a virus to the reprogramming of devices and access points.
Have a Business Continuity Plan to Cover Cyber Attacks
A business continuity plan lays out the steps to follow so your business can resume operations after a disruption like a cyber-attack. While this won’t prevent cyber-attacks, it can lessen the amount of risk a business experiences. Protecting your business against cyber attacks should be a priority for your entire business.
Coverdash can help you get the best policies to protect your e-commerce business, including general liability and cyber insurance in case you are hit with a cyber security breach. Our team of insurance experts will find your business the best coverage at the most affordable rates to best fit your business’s needs, and can provide coverage within minutes. We’ll also assist you in getting your COI (Certificate of Insurance) on your e-commerce platform, so you remain complaint with platform requirements. Contact us today to discuss your options for insurance coverage.