E-commerce has seen a rise in consumers due to the pandemic. Retailers have taken to the internet to accommodate the consumers' ever-growing need to find everything they need or want online.
As accessible and beneficial as this progression is to the Australian economy, it isn't without risks. In fact, according to Aust Cyber’s Australia's Digital Trust Report 2020, a cybersecurity strike like a four-week digital disruption would directly cost Australia's economy 163,000 jobs and AUD 30 billion in losses.
Before discussing the security measures to take to prevent such a situation, retailers must first understand the threats to the e-commerce industry.
The Cybersecurity Challenges Affecting the E-commerce Industry
Ransomware
Ransomware is a type of attack that denies access to legitimate users by encrypting their files. This type of malware tends to target the most vulnerable devices. It is not only a profit-driven attack; it is also a political statement.
Ransomware attacks come with a demand for a ransom to be paid by victims. Paying the ransom helps ensure that the malware doesn't remain on the victim's devices. The message is clear: "Either pay the ransom or lose your data," states the Australian Retail Association.
Given the amount of data retailers keep on their systems, it's not surprising that cyber attackers target the retail industry frequently with this type of attack. It's better to admit that you're vulnerable and take action than to ignore it.
Phishing Attacks
According to the Australian Retailers Association, Phishing involves the use of "an email that looks genuine, but contains a link to a website asking for your login information." Phishing attacks are highly threatening, given that they persist both on mobile and computer.
Cyber hackers can gather information on you and use it against you. In the online world, a single email can contain enough information to con you into giving your personal information. Cyber hackers can use this information to gain access to your financial data or any other personal data that they can use against you.
The goal of a phishing attack is to trick victims into giving away sensitive information. Retailers will do well to ensure that their employees are not vulnerable to phishing. They should also ensure that they receive training to recognise phishing attacks and take appropriate action.
Appropriate Measures the E-Commerce Industry Can Take
The evolution of cyber threats doesn't necessarily mean that businesses are entirely vulnerable to attacks. The E-commerce and retail industries can take several measures to improve security, stop cyber hackers and create safety nets if an attack occurs.
Improve Cybersecurity
The retail industry has made significant inroads in protection and security. However, the work doesn't stop, and retailers should continue to adopt more robust protection measures.
For one, working with a dedicated cybersecurity company can lessen the chances of retailers and their consumers falling victim to cyber-attacks. Cybersecurity companies can install sophisticated firewalls and introduce multi-factor authentication, with the option for later revocation.
Working with cybersecurity companies can also grant retailers access to monitoring tools that help view and track the correlation between security incidents and security losses.
Acquire Cyber Protection Insurance
Cyber protection insurance is a desirable option for protecting a business. In the retail industry, financial losses could be devastating. Liability coverage is an essential aspect of the protection that cyber protection insurance offers.
It's also worth noting that cyber protection insurance can also help businesses recover from reputational damage caused by a cyber-attack.
Your business is more than your assets; it is your reputation. If you are a victim of a cyber-attack and your business suffers, buying cyber protection insurance may help you get back on your feet.
Final Thoughts
The rising e-commerce industry has increased the potential for a cyber-attack. Retailers should take a proactive approach to cybersecurity and adopt appropriate measures to deal with potential threats. In addition to using cybersecurity services, retailers can also look into options that offer cyber protection insurance since insurance can make it easier for retailers to recover from a cyber-attack. It's an essential part of the strategy that retailers can put to improve their security.
For comprehensive cyber protection insurance on the Gold Coast, you should consider New Wave Insurance. Our cyber protection insurance can protect your business from the financial impact of computer hacking or a data breach. Book a 15-minute consultation with us today.