Online shopping platforms are becoming increasingly popular among modern consumers. The convenience and ease offered, such as shopping from home and various attractive promotions, lead many people to prefer online shopping over visiting stores or malls.
E-commerce, or electronic commerce, is a form of using information technology to facilitate business activities online. The exchange of goods and services over the internet benefits both sellers and buyers. Sellers can expand their market without geographic limitations, while buyers enjoy the convenience of accessing a wide range of products more quickly and efficiently.
However, this convenience also brings challenges, particularly regarding the security and confidentiality of transactions. Risks of fraud and data misuse remain significant threats. Therefore, it is crucial for e-commerce companies to equip themselves with adequate security systems to ensure every online transaction is secure. This article will discuss the importance of e-commerce security and ways to protect online transactions for a safer and more trustworthy experience.
What Are the Common Types of Threats?
What are the threats to e-commerce security systems? Similar to other internet security issues, there are numerous risks to be aware of, including data theft and spoofing.
Generally, some threats targeting e-commerce security systems include:
- Illegal data reading and modification
- Fraud by unauthorized parties
- Account and data breaches
These three types of threats are fundamental and can manifest in various ways. One example is the common case of user data theft.
Examples of E-Commerce Security Incidents
In recent years, various data breaches and security incidents in e-commerce have continued to occur. One notable case involved a major e-commerce platform in Indonesia, where a significant data breach exposed approximately 91 million user accounts and 7 million merchant accounts. The hackers managed to steal information such as user IDs, emails, full names, dates of birth, genders, phone numbers, and hashed passwords.
The stolen data was then sold on the dark web for $5,000 or approximately IDR 74 million. Almost 15 million user accounts were available for download from the site. This breach was first reported by a hacker named Whysodank on Raid Forum on May 2, 2020, with the breach occurring on March 20, 2020.
The hackers also tried to crack the hashed passwords and sought help from others to break the algorithm. Screenshots shared on social media revealed some user data, including names, emails, and phone numbers, that had been exposed. This case highlights the importance of data security in e-commerce transactions and the need for stronger protective measures.
Why Is E-Commerce Security So Important?
According to Indonesian Law No. 19 of 2016 on Electronic Information and Transactions (ITE), e-commerce platforms have significant responsibilities in maintaining their system’s security.
Article 15, paragraph (1) of the ITE Law states that every electronic system organizer must operate their system reliably and securely and be responsible for its operations. Paragraph (2) reinforces the organizer’s responsibility for their system, while paragraph (3) states that this responsibility does not apply in cases of force majeure, errors, or user negligence.
Therefore, to better protect consumer data, e-commerce platforms must educate users about security measures such as regularly changing passwords and keeping OTP codes secure from unauthorized parties.
7 Tips for Securing E-Commerce User Data
1. Implement Data Encryption
Use encryption for all user data, including personal and transaction data, to prevent unauthorized access.
2. Regular Security Updates
Perform routine system and software updates to protect the platform from the latest threats.
3. Two-Factor Authentication (2FA)
Implement 2FA to enhance account security by requiring additional verification beyond just passwords.
4. Threat Monitoring and Detection
Utilize security monitoring technology to detect suspicious activity and potential threats in real-time.
5. User Education
Educate users about the importance of maintaining personal data security, such as using strong passwords and not sharing OTP codes.
6. Strong Password Policies
Require users to create complex passwords and encourage regular password changes.
7. Access and Permission Management
Limit access to sensitive data to authorized employees only and conduct regular audits to ensure compliance.
Solutions and Strategies for Meeting E-Commerce Security Standards
There are many strategies that can be implemented for preventing security issues in e-commerce systems. One approach is data encryption, which ensures that sensitive information is protected from unauthorized access. E-commerce platforms can also design strong firewalls to prevent external attacks. Additionally, using security plugins can add an extra layer of protection.
Before implementing these strategies, it is important for e-commerce platforms to have security systems that meet international standards. For example, using commonly used security protocols such as SSL. In addition to SSL, other protocols like HTTP (Hypertext Transfer Protocol), secure MIME, secure WAN (Wide Area Networks), and SET (Secure Electronic Transaction) also play vital roles in e-commerce and other internet uses, including personal, business, and educational purposes.
One effort to maintain security is utilizing services like F5 Ecommerce Fraud Detection and Protection Services and Akamai WAAP. These services help detect and prevent e-commerce fraud and ensure smooth transactions.
E-Commerce Security Solutions from F5 and Akamai
F5 and Akamai are leading security solution providers offering comprehensive protection for e-commerce platforms. Both companies have specific advantages and features that help protect e-commerce from various cyber threats, ensuring secure transactions and a seamless user experience.
Here’s an overview of F5 and Akamai’s e-commerce security solutions:
F5 Ecommerce Fraud Detection and Protection Services
F5 Ecommerce Fraud Detection and Protection Services is a comprehensive solution designed to keep online transactions secure and ensure an uninterrupted user experience. Key features and benefits of this solution include:
Key Features
- Fraud Detection and Prevention: Provides advanced systems to detect and prevent fraud in e-commerce transactions
- Bot Management: Includes effective bot management, using machine learning algorithms to identify and mitigate bot attacks
- Authentication and Access: Strengthens authentication and authorization processes with methods that reduce friction for legitimate users while effectively blocking unauthorized access
- Protection Against Automated and Manual Threats: Shields against various forms of attacks, both automated and manual, that can impact transaction security
- Integration with Security Teams: Supports integration between security and fraud teams, facilitating collaboration to address threats and protect customer data more effectively
- Analytics and Reporting: Provides in-depth analytics and reporting to help companies understand fraud patterns and analyze the effectiveness of security measures
Main Benefits
- Financial Loss Reduction: By detecting and preventing fraud before it occurs, helps reduce financial losses caused by fraudulent activities
- Reputation Protection: Protecting the platform from fraud and bot attacks helps maintain the reputation of e-commerce businesses and build customer trust
- Enhanced User Experience: By reducing friction in authentication processes and minimizing disruptions from cyberattacks
- Operational Efficiency: Integration with existing security teams and systems improves efficiency in handling threats, reduces manual workload, and speeds up incident response
- Adaptation to New Threats: Machine learning technology and evolving analytics allow F5 to adapt to changing attacker tactics, ensuring up-to-date protection
Akamai WAAP (Web Application and API Protection)
Akamai WAAP is a security solution designed to protect web applications and APIs from various cyber threats. WAAP offers comprehensive protection for web-based applications and APIs that are often targeted by attacks.
Here are the key features and benefits of Akamai WAAP:
Key Features
- DDoS Protection: Shields applications and APIs from Distributed Denial of Service (DDoS) attacks that can disrupt service availability and affect performance
- Web Application Firewall (WAF): Provides protection against attacks targeting vulnerabilities in web applications, such as SQL injection and cross-site scripting (XSS), by filtering out malicious traffic
- API Security: Ensures that APIs are protected from exploitation and misuse by identifying and addressing threats targeting APIs
- Bot Management: Identifies and mitigates automated bot attacks targeting applications and APIs, reducing the impact of harmful bots
- Encryption and SSL Certificates: Provides strong data encryption between servers and users with SSL certificates, ensuring data remains secure during transmission
- Monitoring and Analytics: Offers detailed analytics and monitoring tools to detect threats, analyze attack patterns, and provide insights into application security
Main Benefits
- Comprehensive Protection: Safeguards web applications and APIs from various attacks, including DDoS, application attacks, and API threats
- Enhanced Security: Ensures applications and APIs are protected from vulnerabilities and exploits that could compromise data or disrupt services
- Consistent User Experience: Reduces the risk of service interruptions and ensures application availability for end-users
- Visibility and Control: Provides deep visibility into traffic and threats, allowing better control over security policies
With Akamai WAAP, companies can ensure that their web applications and APIs are protected from various cyber threats, maintaining data integrity and boosting customer confidence.
Get E-Commerce Security Solutions from F5 and Akamai Only at CDT
Now is the time to establish a secure customer data system on your e-commerce platform to protect against threats and cyberattacks with Akamai WAF and F5 Ecommerce Fraud Detection and Protection Services at Central Data Technology (CDT).
As an advanced authorized partner of F5 and Akamai, CDT will assist you from consultation through deployment and after-sales support to avoid trial and error. For more information about F5 and Akamai, contact us by clicking the link below.
Author: Ary Adianto
Content Writer, CTI Group
