The Importance of Having Extra Protection if your Business is Doing Online Sales
When running any kind of business it is important to have extra protection to keep your information and the information of your clients safe, especially when it comes to online sales. There are many pitfalls that can befall new business owners including fraud and data security breaches, enough incidents like these in the early days can ruin a business’s reputation and make it hard to get off the ground. But not to worry, there are things you can do to protect yourself and your business, and even if something like this does happen with quick thinking you can make a smooth recovery, I know from experience!
Fraud
The threat of fraud and deception is an ever-present risk when it comes to running an online business, as it is easy for a person to commit online fraud as they can hide behind their computer from thousands of miles away. It can be hard to verify the identity of someone using a credit card or other financial information when the transaction is through a website or online retailer. Fraud is also very common for online retailers to deal with as a result of the consistent and constant exchange of products, or services, whether they be virtual or online orders for a real product or service. It is possible to be duped out of large amounts of money in lost time, merchandise, and money, as well as recover from the blow of fraud. Reducing the chances of falling victim to fraud can be achieved through monitoring all the transactions in your accounts, and keeping a close eye on your bank information. Additionally, do your best to keep all transaction software and online platforms being utilized as updated as possible to provide additional protection over your accounts and your business.
Data Privacy and Security
As the operator of an online establishment, you will be liable for the personal information that is transferred through your website, and that includes financial information such as credit card information. Other types of information can be stolen from customers in a data security breach including customers’ names, residences, and contact information. Hackers are often on the lookout for weak spots in online companies like using out-of-date software and safety measures on your website. It is important to keep your data privacy and security measures updated to protect yourself and your customers. Your customers and clients put a lot of faith in your business when they enter their personal information into your website, it is your responsibility to ensure you protect their privacy.
Nowadays as many consumers are tech-savvy they only want to be purchasing from online businesses that have set up the best security systems so that their information is in trusted hands. Beyond this, when collecting customers’ information it is important for them to know in what ways you will be using their information, who else you share it with and why you share it with them. Even if you’ve taken precautions it is still possible to befall a breach, and in this case, you must alert customers that their information has been compromised. To protect both yourself and your customers it would be a good idea to put privacy policies in place. When handling personal information it is also good practice to have established security systems to decrease the chances of having to deal with a breach of information or security.
My Story
As a business owner myself, I have unfortunately had to deal with security and privacy breaches, however, with quick action afterwards and learning from your mistakes, it is possible to recover and continue to grow your business. I have launched many businesses in my time, and in one instance a hacker was able to steal our API, which is the code that is used to integrate the payment platform into the website and is similar to a credit card number as it is used to do all transactions related to the associated bank account. As a result of this over 1000 stolen cards from Australia were charged by the hackers as part of a scam to see which ones would be approved and could be used for larger purchases on other websites. Luckily for us, the charges were relatively small, under 10 dollars, however, we still had to refund all of it, change our API code, and invest in additional layers of security to ensure that nothing like this ever happened again. Even with additional layers of security and protection, nothing is 100% protected, however, the stronger the measures the less likely scammers will be to try and continue to break through and will go and look for another website that has less security to steal the API from. When first starting my business I did not understand the true importance of extra layers of security and protection but now I do, and since I have implemented new measures of protection I have not had to deal with such hacks like this again.
There are a number of resources available online to business owners looking to enhance their cyber security and protect the information of themselves and their clients. Including:
The Government of Canada Website: https://cyber.gc.ca/en/
Cybersecurity Resource List: https://www.cyberdegrees.org/resources/the-big-list/
How to Secure & Protect Your Website: https://sucuri.net/guides/website-security/
Fast Facts
Did you know that popular e-commerce platforms such as Shopify, Wix and SquareSpace are very secure, however, their transaction fees are very high, for example, Each time a customer purchases from your Shopify store, a transaction fee will be charged? The fees that you may be charged depending on your plan are 2%, 1% or 0.5%. For this reason, it is a lesson for small business owners to be vigilant and monitor their websites, especially if they do not have an IT team.
Tips to keep your online store secure
Use Strong Passwords - Make sure that strong passwords are forced, including capitals, symbols, numbers and letters so that they are more secure and harder to crack
Use Two Factor Authentication - Require a code to be texted to your phone every time someone tries to log into your account, this can stop potential hackers in their tracks as you’re the only one with your phone.
Keep your site updated - If your website is out of date it may be missing important security patches that could prevent you from becoming a victim of fraud or internet hackers.