Broad advancements in technology over the past decade have resulted in an increased number of people who purchase goods and services through digital platforms. Almost $800 billion of purchases were made online in 2020, mainly caused by the arrival of the COVID-19 pandemic. That is an increase of more than 30% from the previous year.
There is no wonder that the e-commerce sector is one of the fastest-growing industries in recent years. Its share in the global retail market has continually increased annually, reaching almost 20% in 2021. And with more people projected to use online shopping and payment services in succeeding years, experts predict that e-commerce will dominate the retail sector in the post-pandemic world.
However, the hasty expansion of e-commerce not only attracts investors and consumers to invest in digital retail platforms. The nature of the industry makes it more enticing to cybercriminals, which target various classified information for personal gain. Small and medium enterprises (SMEs) lose more than $2 million to fraudsters every year, causing massive financial and reputational damage.
This is why implementing robust e-commerce fraud prevention solutions has been vital for numerous companies recently. Swindlers continually evolve their tricks, and many people fall prey to their fraud strategies. Without a solid system to protect their network and servers, companies risk the possibility of data breaches and account takeovers. If this happens, the bad actors will have an opportunity to use the account to make fraudulent activities like illegal purchases or money laundering.
Moreover, other business-critical elements, such as algorithms and intangibles, might be stolen. Compromising this vital information will lose a considerable edge in the ever-competitive market. Successful attacks might also result in system shutdowns, which might cause lengthy operations downtime and loss of customer trust.
An effective cybersecurity method used by countless organizations is biometric authentication. The client who wishes to use the services will need to record specific biological data, such as fingerprints and face structure, during the onboarding stage. This information will, later on, be used using devices that can provide frictionless authentication processes for businesses and their clients.
To learn more about cybersecurity in the e-commerce and payments industry, check this infographic from LoginID.
