Increased online shopping increases the risk of cyberattacks

E-commerce sales increased 7.6% last year, according to the U.S. Census Bureau. Everything indicates that the number of retail purchases on the Internet will continue to grow, and with it the increased opportunities for cyberattacks.

Cracking consumer passwords and creating ghost sites are among the top threats for retailers, making identity management a priority, says Nick Stuart, RSM’s senior analyst in the consumer products industry. Ghost sites are replicated sites that look exactly like the seller’s site, but with a fake URL. When a consumer makes a purchase on a ghost website, criminals steal personal information, including credit card information. A sound security strategy includes authentication and other access protocols to combat these threats.

“Passwords are common across a variety of online platforms, from consumer loyalty accounts to store apps and checkout systems,” he says. “After a breach, personal data, purchase history, financial information, credit card numbers and other data are captured for criminal purposes.”

While security is of the utmost importance, retailers also want to reduce “friction,” or the frustration their customers experience when online shopping requires extra effort and time. Consumers want less hassle with fewer clicks at checkout, even if they expect the process to be secure, Stuart says.