Key takeaways:
- eCommerce security is about keeping your online store and customers safe from cyber threats.
- Businesses need to protect customer data, maintain trust, and prevent costly breaches.
- Protecting customer data is important for eCommerce businesses, fulfilling both legal obligations and building customer trust.
Online shopping plays a key role in global retail. The internet transformed how we buy and sell goods, with over 5 billion users worldwide increasingly shopping online. Online retail sales are projected to exceed $4.3 trillion in 2025 and continue growing.
However, online threats are real. According to Security Metrics, in 2023, 7.4% of inspected sites had malicious issues. The most common ones were “malicious double checkout” and “form jacking,” which target payment information.
Given that customer trust and company reputation largely depend on your security measures, many companies across the globe invest heavily in eCommerce site security.
Read on to appreciate its importance.
What is eCommerce security and why does it matter?
eCommerce security is about keeping your online store and customers safe from cyber threats. It protects personal details, payment information, and prevents fraudsters from creating fake accounts or attacking your inventory system.
eCommerce security is generally made up of these core principles:
- Protecting data. eCommerce security protects online stores from cybercriminals and data theft by safeguarding customer information and payment details.
- Ensuring transaction accuracy. Transaction accuracy ensures that all data, like prices, quantities, and payment information, remains correct.
- Verifying users and systems. Authentication confirms the identity of users, administrators, and systems accessing your eCommerce site. It’s a must for protecting sensitive data and transactions.
- Authenticating proof of transactions. It’s about having robust, verifiable evidence that a specific action (like a purchase or data submission) occurred, was authorized, and hasn’t been altered.
Your customers want to shop where they feel safe. When you prioritize security, customers trust you more and buy more often. Good security isn’t just protection—it’s a competitive advantage that boosts sales while preventing costly security incidents that may damage your business reputation.
What are top eCommerce security threats?
Cybercriminals continuously develop new attack methods targeting online stores, aiming to breach systems, steal information, and damage customer trust. Understanding these evolving threats is crucial for maintaining eCommerce security in today’s digital retail environment:
- E-skimming
- Phishing
- Structured Query Language (SQL) injection
- Friendly fraud
- Malware
- Man-in-the-Middle attack (MitM)
Let’s cover each one in more detail.
E-skimming
In e-skimming or web skimming, cybercriminals put malicious code into online stores to get sensitive information like names, addresses, credit card details, and Social Security numbers (SSNs).
Victims remain unaware of the breach until their data is used for fraudulent activities, such as unauthorized online purchases.
Phishing
Phishing is one of the most common cyberattacks, targeting businesses and individuals alike. According to Statista, nearly nine million phishing attacks were detected globally in 2023; in the first quarter of 2024, there were about one million unique phishing sites worldwide.
Unlike other cyberattacks that exploit technical vulnerabilities, phishing preys on human psychology, tricking users to reveal sensitive information. Here, fraudulent individuals impersonate reputable entities via fake emails, text, or calls to make users provide credentials, make payments, and download malware.
SQL Injection (SQLi)
SQLi happens when fraudulent individuals insert malicious codes into site input fields, exploiting poor input validation to directly manipulate databases. This results in the following:
- Data theft. Involves illegal access, duplication, or extraction of sensitive digital information. It’s a serious breach that leads to identity theft and financial fraud.
- Data loss. Malicious deletion or inaccessibility of data, making it permanently gone or unretrievable.
- Data corruption. Involves altering or damaging data, rendering it inaccurate or useless. Data may still physically exist, but it’s no longer accessible or interpretable.
- Authentication bypass. Attackers skip or avoid login security to access user or admin accounts without legitimate credentials. Exploiting weaknesses in authentication systems, manipulating session data, or leveraging default or weak passwords to gain improper account access.
- Full system control. In severe cases, SQLi leads to attackers fully controlling a system via the whole database server. Allowing them to execute system commands and gain full remote access beyond just database manipulation.
Friendly fraud
Friendly fraud, also called chargeback fraud or first-party fraud, happens when customers dispute valid purchases with their bank instead of requesting refunds from the store directly. This poses a significant financial loss for online businesses.
The term “friendly” refers to the fact that the original purchase was made by the actual cardholder or someone they know, unlike regular fraud where criminals use stolen cards or identities.
Malware
Malware, or malicious software, are harmful codes created to damage systems, steal data, or gain unauthorized access. They spread through infected files, dangerous websites, or security vulnerabilities.
Common malware types are:
- Ransomware. Locks up data and demands payment to unlock it.
- Spyware/keyloggers. Secretly capture passwords and personal information.
- Trojans. Hide as legitimate programs but create security backdoors or steal data.
- Viruses/worms. Self-copying code that damages files or spreads quickly across networks.
- Botnets. Groups of infected computers controlled by cybercriminals for large-scale attacks.
MitM
An MitM attack occurs when cybercriminals exploit security flaws to secretly insert themselves into online conversations between two parties. They spy on and steal the information being shared. The people communicating through email, texting, or video calls don’t realize someone else is watching and recording everything they say.
Compared to phishing, MitM is unnoticed and undetected. Cybercriminals achieve this by exploiting public Wi-Fi, hijacking sessions, or spoofing Domain Name System (DNS) records.
How to protect eCommerce site with the right hosting service
Selecting the right web hosting provider plays a key role in eCommerce security since your host is the first line of defense against online threats. The ideal one shares your commitment to protecting payment information, customer information, and private data.
If you’re on the market for a hosting provider, a safe bet is a company that:
- Employs at least 128-bit Advanced Encryption Standard (AES) encryption
- Facilitates automated backups
- Uses strong administrator access controls
- Applies network monitoring alerts
- Provides emergency support
Employ 128-bit AES
Reputable eCommerce website builders like Network Solutions implement AES, which is a symmetric encryption method that converts data into unreadable code using a private key. Even if cybercriminals intercept customer information, payment details, or order data, they’re useless without the proper decryption key.
- 128-bit AES. Offers robust security that makes brute-force attacks practically impossible. Breaking this encryption requires billions of years using today’s computing power, making it virtually uncrackable for fraudulent individuals.
- 256-bit AES. Provides stronger protection by creating an almost impenetrable barrier against cyberattacks. Because of its robust protection features, it’s widely used by government and military entities that require classified information protection.
Facilitate automatic backups
Many eCommerce hosts include automated backup services that schedule daily, weekly, or custom interval backups without manual effort. This ensures recent data are available and minimizes data loss during security incidents or system failures.
Use strong administrator access controls
Administrator controls determine who accesses critical areas of your eCommerce site. Lapses in this aspect are primary targets of cybercriminals since compromised accounts allow them to access sensitive information leading to data breaches, financial fraud, website downtime, and malware injection.
Key components of strong admin controls are:
- Multi-factor authentication (MFA). Requires a second verification method beyond passwords. It comes in mobile app codes, email verification codes, or biometric scans. This prevents account access even when admin passwords are compromised through phishing or brute-force attacks.
- Strong password policies. Require complex, unique passwords with diverse characters and prevent reuse across platforms. Regular password changes can further strengthen security measures.
- Session management. Prevents session hijacking by implementing short timeout periods for inactive admins, transmitting session IDs only over HTTPS, and regenerating session identifiers after login to block fixation attacks.
- IP whitelisting/restrictions. Restricts admin access to trusted IP addresses from approved locations like office networks or VPNs. This creates an additional security layer by preventing unauthorized login attempts from unapproved locations.
Apply network monitoring alerts
Network monitoring is an ongoing activity that network administrators use to detect connection problems and other network issues affecting eCommerce operations. Through effective analysis, network and system administrators improve overall network performance for online businesses.
This monitoring process includes:
- Network traffic anomalies, unauthorized access, and data transfers
- Website file changes, database activity, and SSL/payment gateway issues
- Server performance spikes, system errors, and security alerts
- Suspicious account activity, privilege changes, and authentication failures
Provide emergency support
eCommerce emergency support involves predetermined and secure backup entry methods for important computer systems during untoward incidents. This ensures business continuity and protects sensitive customer data when normal access methods fail.
Here’s a breakdown of key emergency support aspects:
- Stay in business. System crashes and attacks can shut down your store and cost money. Emergency access helps fix problems fast.
- Keep data safe. Protect customer credit card numbers and personal information from thieves and cybercriminals.
- Build trust. Customers feel confident shopping when they know you can handle security problems quickly.
- Meet legal requirements. Laws require online stores to have emergency security plans and proper data protection.
What are eCommerce best practices to follow?
Robust eCommerce security is a must with all the cyberthreats being rampant. Businesses need to protect customer data, maintain trust, and prevent costly breaches by integrating security into everything they do through best practices like:
- Install a trusted Secure Sockets Layer (SSL) certificate
- Use verified payment systems
- Establish trust signals
- Implement strict data protection practices
- Regularly test eCommerce site for vulnerabilities
- Audit logs for suspicious activity
- Update website builder software and plugins
- Be proactive about security training
Install a trusted Secure Sockets Layer (SSL) certificate
SSL certificates (HTTPS) are necessary for encryption and building customer trust. For eCommerce sites, Organization Validated (OV) or Extended Validation (EV) SSL certificates are appropriate options. An OV SSL assures customers that your site is not a phishing entity, while an EV SSL gives a strong public assurance that your business is legitimate and reputable. This is the reason why the latter is the gold standard for eCommerce sites.
Such enhanced identity verification, visible in certificate details, increases customer confidence in your website, even though visual indicators like green address bars are no longer displayed in most browsers.
Use verified payment systems
Verified payment systems are secure middlemen that protect customer data and build trust while reducing compliance for merchants. They handle financial info with robust security measures.
Key security features include:
- Payment Card Industry Data Security Standard (PCI DSS) compliance. Follows the highest standards in the industry for card data security.
- Encryption. Data is encrypted with Transport Layer Security (TLS).
- Tokenization. Card numbers are replaced with meaningless tokens, significantly reducing breach risk.
- SCA/3D secure. Adds identity verification to prevent fraud.
- Fraud detection: Uses machine learning and other tools to block transactions in real-time.
Establish trust signals
Payment method icons from major providers such as Visa, Mastercard, PayPal, and Apple Pay serve as essential security indicators for online stores. They show customers the available transaction options and demonstrate secure processing capabilities.
These recognizable symbols create immediate buyer confidence, transforming hesitant users into repeat customers.
Implement strict data protection practices
Protecting customer data is important for eCommerce businesses, fulfilling both legal obligations and building customer trust. Since online transactions involve sensitive personal and financial information, robust security practices are important for preventing breaches and maintaining reputation.
Key responsible data practices include:
- Collecting only necessary information for transactions (order fulfillment, customer service, or legitimate business functions)
- Avoiding gathering unnecessary details.
- Clearly stating why specific data is collected and how it will be used.
- Using information only for its declared purpose
- Obtaining consent before any additional uses.
Regularly test for vulnerabilities
Regular vulnerability testing for eCommerce websites is not just recommended but vital. It’s a continuous process that identifies and fixes security weaknesses before cybercriminals can exploit them.
Below are some of the reasons that make the said procedure important:
- Evolving threats. New vulnerabilities appear and new techniques are developed. Vulnerability testing keeps your defenses up to date.
- Software updates and changes. Every software update, new feature or integration (e.g. plugins, APIs) introduces new security risks. Testing after changes is key.
- Data protection. eCommerce sites handle sensitive customer data (payment info, personal details). Vulnerability testing prevents data breaches which lead to financial loss, legal penalties and severe reputational damage.
Audit logs for suspicious activity
Audit logs record all system activity and provide unwavering protection through early detection of unauthorized access and insider threat. They’re an integral security layer, providing visibility for proactive defense, rapid response, and assurance of your online business’s trustworthiness.
Update website builder software and plugins
Updating website builder add-ons / plugins provides the foundational infrastructure for countless online stores. While the said platforms handle many backend security aspects, ignoring their updates, or those of the apps and themes within them, poses risks.
Below are the reasons that make updating your website builder non-negotiable:
- Security patches. Website builders regularly release updates containing critical security patches for newly discovered vulnerabilities. These updates prevent attackers from bypassing security, accessing customer data, or disrupting operations. Neglecting or delaying them leaves your website vulnerable to attacks.
- App and plug-in vulnerabilities. eCommerce sites and website builders use apps and plug-ins for marketing, shipping, inventory, and analytics, each of which is an entry point for cybercriminals. App developers release updates to fix vulnerabilities; if you don’t update them, your whole site can be compromised even if the core is secure.
- Theme security. Your store’s visual theme, particularly custom or third-party designs, may contain security vulnerabilities. Theme updates typically include security patches along with design enhancements.
- PCI DSS and other compliance. Many website builders help maintain PCI DSS compliance at the platform level. However, using outdated versions can lead to compliance violations, resulting in significant fines and potential loss of payment processing capabilities.
Ignoring updates exposes your online business to unnecessary risks. Prioritize regular updates as a fundamental protection strategy for your business and customers
Be proactive about security training
In eCommerce security, your employees are your strongest defense; human error causes most breaches. Therefore, proactive, ongoing security training is key. It needs to focus on:
- Phishing detection. Teach staff to spot deceptive attacks (emails, texts) and prevent a single click from compromising your network. Simulations build vigilance.
- Password hygiene. Emphasize strong, unique passwords, password managers, and Multi-Factor Authentication (MFA) to secure accounts and infrastructure.
This investment reduces breach risk, ensures compliance, and builds a trustworthy e-commerce business.
Fortify your eCommerce security with Network Solutions
The persistent and ever-present nature of cyberthreats demands a vigilant, layered approach. The first important step is to make sure to use a reputable online store builder.
Then, don’t leave your eCommerce site vulnerable to the threats we just covered. Take your eCommerce security one step further and implement a comprehensive and reliable protection in the form of Network Solution’s SiteLock to protect against hacks and malware that threaten online stores across the globe.
Choose the package that best fits your business needs and rest assured that your website, reputation, and site visitors are protected against cyberthreats.
Frequently asked questions
Before paying online, be vigilant during the checkout process. Here’s what you should consider:
1) HTTPS and padlock. Confirm the URL displays https:// with a locked padlock icon. Check the certificate’s authenticity and provider.
2) Consistent web address. Ensure the domain name stays the same throughout. For payment processors like PayPal, verify you’re on their official website.
3) Security badges and payment icons. Look for trusted payment symbols (Visa, Mastercard) and clickable security seals; confirm they’re genuine.
4) Secure internet connection. Use protected networks (home Wi-Fi, cellular data, VPN) instead of public Wi-Fi for transactions.
5) Two-factor authentication. Enable and use Multi-Factor Authentication (MFA) when available for additional protection.
6) Data usage policy. Review how your payment and personal information will be handled, stored, and protected.
7) Unnecessary Information Requests. Be cautious of sites asking for unrelated details like Social Security Numbers or banking PINs.
Yes. Security plugins are a key part of an eCommerce security strategy that includes secure hosting, software updates, strong passwords with MFA, backups, and staff training. They’re not optional extras, but worthwhile investments that can complement long-term goals by ensuring sensitive data aren’t compromised.
For eCommerce businesses, PayPal offers a comprehensive, multi-level security system that greatly reduces risks, safeguards both customers and merchants, and streamlines regulatory compliance. It represents a trusted and secure option for processing online payments.