In today’s digital age, e-commerce is booming, bringing both opportunities and challenges. Cyber threats like data breaches, fraud, and phishing attacks are increasingly common, putting online businesses at risk. This guide provides practical tips and best practices to secure online transactions, safeguard customer data, and ensure customer trust and loyalty.
Common E-Commerce Threats
E-commerce platforms face various cyber threats that can compromise the security and integrity of online transactions:
● Phishing attacks: Multiple industry sources indicate that 91% of successful breaches in 2025 began with a phishing email.
● Malware: 42% of action-on-objective incidents in 2025, according to threat statistics.
● Data Breaches: The average global cost of a data breach in 2025 was around $4.44M.
● Fraudulent Transactions: Payment fraud in the European Economic Area (EEA) increased to €4.2 billion in 2024, up from €3.5 billion in 2023, showing continued growth heading into 2025. This includes a mix of card, PSP, and account abuse fraud.
● DDoS attacks: Between 2023 and 2025, the number of DDoS attacks increased by an estimated 236 %, reflecting a multi-year upward trend.
● Account Takeovers: In 2025, U.S. authorities reported over $262 million in losses from ATO fraud and more than 5,100 complaints, showing how social engineering and credential theft are used to hijack accounts.
Securing Your Website
Securing your website is fundamental to maintaining customer trust. Essential steps include:
Use HTTPS Encryption.
Implement Strong Authentication Mechanisms.
Employ Web Application Firewalls.
Implement CAPTCHA.
Implement IP Restriction Settings.
Set up alerts for suspicious activities.
Update your security plugins.
Use strong passwords.
Enable Multi-Factor Authentication (MFA) for:
a. Admin panels
b. Hosting accounts
c. CMS dashboards
d. Payment back-office
Secure Backups Strategy
API Security Controls
a. API authentication tokens
b. Rate limiting
c. Input validation
d. API gateway protection
Friendly Fraud (Chargeback Fraud)
This occurs when a customer disputes a legitimate transaction with their bank instead of contacting the merchant for a refund. The 2024 projected global merchant chargeback cost is $54.5B. To minimize this:
● Provide a clear return and cancellation policy on your website.
● Maintain detailed records of transactions (shipping details, proof of service).
● Implement restrictions to prevent users from registering multiple accounts with the same email or phone number.
● Offer responsive customer support channels.
Account Takeover Fraud
Account Takeover (ATO) happens when cybercriminals gain unauthorized access to accounts through phishing, credential stuffing, or malware. Once inside, they can steal data, commit fraud, and damage customer trust.
User Protection
● Be cautious of emails from unknown senders with links or attachments
● Never share login credentials
● Keep devices updated with antivirus software and security patches
Avoid public or unsecured Wi-Fi for sensitive activities
Strong Authentication
● Enable Multi-Factor Authentication (MFA)
● Enforce strong password requirements
● Prevent password reuse
● Use secure password hashing (e.g., bcrypt/Argon2)
Protection Against Automated Attacks
● Rate limit login attempts
● Use CAPTCHA and bot detection
● Implement bot management solutions
● Apply device fingerprinting
● Filter suspicious IP addresses
Session & Account Security
● Short session timeouts
Re-authentication for sensitive actions
● Step-up authentication for high-risk transactions
● Limit simultaneous sessions
API & Mobile App Security
● Secure API authentication tokens
● Use mobile certificate pinning
● Prevent reverse engineering
A layered security approach helps protect accounts, transactions, and customer trust.
Reporting Fraud
Early detection and reporting are pivotal in fighting fraud. If you encounter fraud, reach out to [email protected] or [email protected].
Would you like me to summarize these security tips into a checklist for your employees?
