Impact on online businesses
It is not just the economy which gets affected. The online merchants also have to bear the loss. A hacker, who wants to get in to the system of the online company, usually attacks the internal user system. Sitting on his end having access to the internet he can get hold of the systems end points. There are various hacking tools available on the internet. With the use of these tools he can then get inside the system in just a few hours and get information he wants. For example if he gets inside an e-store he can confirm a few orders for himself or can steal credit card numbers or just for the sake of fun can corrupt the system with a virus.
Every day new hacking tools get available on the internet and make the job of security experts difficult. Anybody’s personal computer can get hacked in just 20 minutes. It is believed that online merchants can lose almost $2. 8 billion every year. What can a hacker do if he gets into any e-commerce business or online merchant’s website? – He can gain access to the balance sheets and can change the entire stock rate of that company – Can have access to payroll information and can change it the way he wants – Get access to bank statements and can transfer money.
Can get the account number and can play with that too – Can get hold of financial statements which are not accessible publicly – Get into the research and development plan of the company and change it or can spy. – Get credit card numbers present on the database and commit fraud As we can see that if there is even one loop-hole in the security measures of a website it can lead to devastating results. The entire company can come down or can be spied on and lose with the competitors. E-commerce crimes cost the economy billions of dollars and can change the entire future of any electronic business.
The co-founder of ClearCommerce Corporation, Julie Fergerson, did a survey to find out various tools used for online fraud detection. According to them a combination of various tools is better than using one costly tool. Below are top five tools which were ranked by the ClearCommerce Corporation . 1. Rule-Based Detection 2. Real-Time Credit Card Authorization 3. Card Verification Codes 4. Statistical Models 5. Address Verification Systems They also ranked some tools which were considered to be cheapest: 1. Rule-Based Detection 2. Real-Time Credit Card Authorization 3. Card Verification Codes 4.
Address Verification Systems 5. Statistical Models It was also pointed out in the end that a combination of fraud detection tools and some human effort is necessary in order to get the best security system. There is always a need for manual review . PREVENTION While shopping online or making any kind of transaction certain preventive measures should be taken in order to avoid financial and other loses. When shopping online the customer should : – Make sure the buying is always done form a reputable company – Always find out maximum information about the company, and it is better if they have a physical location
– Always call the contact numbers and see if they are correct and valid – Always send e-mails and see if the address is really working and valid. See if the seller replies from that address – Never purchase from buyers who do not have any contact number and address shared – Always check if the business is valid from business bureau – Check other websites and people and find out more about the company – Never judge the company by the appearance of a website. A very elegant website can be created in just a few hours – Be very careful when answering any special offers from your inbox.
Do not share your credit card information with such people – Be careful when transacting with people outside the country you are living in – Always read terms and conditions and ask for warranties – The best way to buy something online is through credit card as you can always deny charges due to the fraudulent company – When transacting online always see that the website is secure. Just because a website is saying it is secure does not make it secure. See that it has a tiny padlock icon – Always inform the police in case of any fraud as this will help the system improve.