E-commerce Security Threats: How to Fight Them

July 05, 2018

how to fight e-commerce security threats

When market research firms dedicated to covering the e-commerce sector publish reports about losses caused by security threats, they mostly discuss issues related to payment fraud and data breaches.

Other matters related to intellectual property theft and counterfeiting tend to be less visible because they are more difficult to quantify; in other words, it is easier to add up $57.8 billion lost in fraudulent credit card transactions than to figure out the losses suffered by merchants to unscrupulous sellers and scammers. E-commerce entrepreneurs face quite a few security threats that are not always related to online payment transactions. The field of e-commerce security is not limited to making credit card transactions safer; it looks at the entire e-commerce chain and online sales process for the purpose of minimizing risks for everyone involved. With this in mind, here are some security threats you may run into as an Amazon seller:

Data Breaches

The information stored in your Amazon Seller Central account is pretty safe, and you generally do not have to worry about Payment Card Industry Data Security (PCI) standards because Amazon exceeds compliance in this regard.

Nonetheless, you still need to be mindful of your position as an e-commerce entrepreneur. The information stored in the devices you use to access your Amazon account should be protected with solutions such as antivirus software, firewall, wireless security protocols, and data encryption.

Phishing Attacks

What Type of Fraud is Involved with E-commerce?

In recent years, the e-commerce sector has been rocked by this type of cyber attack, which is usually carried out by means of deceptive emails, prompting users to click on malicious links. Some phishing tactics feature spoofed emails that seem to come from Amazon Seller Support; these fake emails may prompt you to click on a link that will take you to a website that looks like your seller login page.

Other phishing attacks may feature attachments enabling the installation of keyloggers and other malware coded to steal username and password credentials. Similar to data breaches, phishing attacks can be mitigated with computer and network security essentials.

Unauthorized Sellers

This e-commerce security risk can cause considerable damage in terms of brand reputation. When unauthorized sellers list your Amazon products without permission, they may be trying to scam shoppers with replacement items or counterfeits.

If you are an exclusive distributor, rogue competitors may surreptitiously purchase from you to build an inventory that they can subsequently use to undercut your pricing and take over the Buy Box. The first line of defense against unauthorized sellers is active monitoring of your product listings, which you can achieve with a Brandlox subscription.

Counterfeit Products

E-commerce analysts estimate that up to a third of products offered by third-party sellers on the Amazon Marketplace are counterfeits. This is not an issue of shoppers explicitly looking for fake Rolex watches that they can cheaply buy on eBay, the problem is that shoppers are being duped by counterfeiters who hijack the Amazon Standard Identification Numbers of the legitimate sellers who created them.

With brand protection solutions such as Brandlox, Amazon sellers can not only prevent ASIN hijackings but also conduct test purchases as evidence that the Amazon legal department can use to take action against the scammers.

Aside from ASIN monitoring and test purchases, Brandlox subscribers can also generate, send and track cease-and-desist legal notices issued to unauthorized sellers. Brandlox is ideal for sellers who manage 10 or more ASINs on the Amazon Marketplace. To learn more about Brandlox protection, get in touch with one of our e-commerce consultants to start a free trial. Call 1-866-848-6072.

How to Classify Authorized Sellers to Use Your Brand's ASINs

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