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How to Secure Your Online Business From Fraud Attacks

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In today’s digital world, businesses cannot afford to be left behind when it comes to their online security.

With billions of users connected online, ecommerce has become one of the most common ways for businesses to sell their products or services.

However, with an increase in the number of cyber attacks in recent years, security has become a primary concern for many businesses.

In comparison to 2020, businesses experienced  more attacks per week in 2021.

Even if your business isn’t exactly ecommerce but just an online presence, you need to make sure that your website is secure from cyber attacks.

Whether you are launching your online business for the first time or you have been selling your products online for some time now, it is important that you take measures to prevent fraud and data breaches.

Here are 11 tips that will help you secure your online business and make it fraud-proof:

11 tips to defend your online business against fraudulent attacks

If your online business stores or processes data of EU residents, you must be complying with GDPR—one of the most stringent data privacy regulations.

If you’re non-compliant with GDPR, you can face a penalty upto 10 million euros or 2% of the global turnover in the preceding year.

Recently, GDPR added a few new laws and regulations set in its article 30. One of which is Records of Processing Activities (RoPA).

RoPa privacy requires your online business to keep records of the activities you carried out while processing users’ data. It includes records of data processing activities carried out by, for example, your marketing department, HR, or even third-parties.

While it is something you must comply with to avoid GDPR’s hefty penalties, you can use it to your advantage as well.

You can use the maintained records to self-audit your data processing activities. It can help you find out the loopholes and protect you against potential cyber attacks.

Fraud detection software is an important first line of defense against fraud attacks.

These software tools are configured to detect unusual patterns and behaviors that indicate cyber attacks activity.

While fraud detection tools are not able to fully stop attacks from occurring, they help your business detect fraudulent activity faster and respond with more confidence.

This greatly reduces the impact of a fraud attack, saving your business time and money on investigation and remediation efforts.

KYC checks help you verify a person’s identity and ensure that they are who they say they are.

Know that Americans were victimized by identity theft to the tune of $52 billion last year. This considerable figure indicates why you must run KYC checks in your online business.

KYC checks are especially helpful when onboarding new customers. They are used to verify the identities of existing customers as well.

Depending on the type of business you operate, there are different types of KYC checks that you can perform to verify a person’s identity.

4. Don’t be afraid to turn down unknown requests

As your business scales, you will likely be approached by unknown third parties who make requests for sensitive data.

For example, your data integrator may request access to your customer data. This request may seem legitimate, but you still need to approach it with caution.

To protect yourself from fraud attacks, you must be selective about the third parties who have access to your company data.

At the same time, remain transparent and accountable with how you share your data.

This can be done by documenting each third-party access request and requiring each third party to provide proof of their identity before granting them access to sensitive data.

Many businesses partner with third parties to expand their reach and provide better products and services. However, these alliances can create additional risk if you’re not careful.

Before you enter into a partnership, make sure you thoroughly vet the companies you partner with. This will help you identify potential fraud risks and protect your data from cyber attacks.

You can use these guidelines when vetting companies:

  • Are they reliable?
  • Do they have a history of providing excellent customer service?
  • What kind of reputation do they have in the industry?
  • How long have they been in business?
  • How are they funded?
  • Do they have a long-term plan, or is their business model designed to make a quick profit?
  • How do they use your data?
  • Do they have a privacy policy that is transparent about how they protect your information?

SSL is one of the core components of website security. SSL is a cryptographic protocol that ensures that data exchanged between your website and users is secure.

SSL is what makes it possible to log in to your website securely with a password and be confident that only you and your system will see that information.

It is recommended that you install an SSL certificate on your website if it is used for any type of online transaction, like making online purchases, collecting email or financial data, or processing orders.

Again, this is another important aspect of digital security.

The HyperText Transfer Protocol (HTTP) is the language that websites are written in and what users see when they visit your site.

This is how information is exchanged between two computers and how your website works, sending and receiving data.

If your site does not have HTTPS, then you are vulnerable to various threats, from phishing to identity theft.

If your website is not HTTPS, don’t worry. You can log in to your hosting account and change the settings to have HTTPS on your site

You must always have different passwords for different accounts, but many people just don’t make the effort to do so.

In 51% of cases, users reuse their passwords across their personal and professional accounts.

If you use the same password for your business’s social media accounts as you do for your business website, hackers could gain access to all of your online accounts in one fell swoop.

Worryingly, if your social media accounts are not protected with two-factor authentication, your login credentials are all it takes to access your accounts.

Having the same password for everything makes it easy for someone to hack into your other accounts because they only need to hack one account to access everything else.

Choose passwords that are long and difficult to crack. Make sure you change your passwords often as well.

Don’t use the same username for everything either.

Two-factor authentication means that your login credentials are verified via two different methods.

For example, when you log in to your ecommerce site, you can enter your username and password as well as receive a code on your smartphone.

This makes it impossible for someone to log in to your business account or website if they don’t also have your phone.

This is the best way to secure your online accounts and make sure that nobody can log in to them if they don’t have your login information and your phone.

Online fraudsters are likely to try to scam your business in multiple ways.

One of the common ways to do this is by ordering products from your website and then claiming they weren’t received, or that they are faulty.

In such a situation, you would be liable for repaying the money. If you have already shipped the order to the customer, it becomes a loss for your business.

To prevent this from happening, conduct manual checks on purchases that seem suspicious.

For example, if you notice a very large order for an FMCG product that came from a different country, it might be suspicious.

It’s not a great idea to deny all large orders, but you should at least manually check them to make sure they are legitimate.

Fraudsters are becoming more sophisticated, which means businesses need to stay ahead of the curve by using artificial intelligence (AI) solutions.

AI can help identify potential fraud attacks and prevent them from impacting your business. This includes using machine learning algorithms that can identify evolving cyber crime trends.

Not only that AI can identify anomalies in your data to help you identify potential fraud threats, it can also help you quickly identify which fraudulent transactions are most urgently in need of attention.

Fraudulent activity often goes undetected because fraud detection systems rely on predetermined rules and algorithms.

AI, on the other hand, can learn from new data and adapt to emerging threats. It can also help spot subtle changes in fraudulent activity that may have previously gone unnoticed.

The digital age has ushered in new challenges and dangers for online businesses. You never know when a fraud attack will strike your business.

So, to protect your business and your customers, you need to make sure that your website is secure against hackers and other security threats.

To help you do this, we have enlisted 11 ways to secure your online business from cyber attacks.

If you’re incorporating these ways into your online business operations, the likelihood of fraud attacks on your online business would lessen to a great extent.

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 09.11.2022

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