What are the Biggest Security Threats to eCommerce Business?

Category: Growth


The eCommerce industry is currently profitable, with financial experts estimating to surpass $4.5 trillion in sales in 2021. This is attributed to the convenience and other benefits of online shopping. However, despite these benefits, eCommerce companies are face several hurdles on their way to success. One of the major challenges is cyber-security threats, which are currently on the rise.

The success of online shops has brought unwanted attention, with cybercriminals launching sophisticated targeting methods to exploit vulnerabilities within online stores. That said, owners of eCommerce stores should watch out for the following security threats:

  1. Direct Website Attacks

Cybercriminals often use Spear-phishing to hack websites and steal valuable information. However, websites can also face direct attacks, such as Dedicated Denial of Service Attacks, which flood the store with multiple requests from undetectable and malicious IP addresses. Such sophisticated attacks can force your store offline, leaving it vulnerable to vicious attacks, including malware.

DDOS attacks essentially overwhelm your eCommerce store hosting services, blocking the store from providing services to regular visitors. Flooding the store with thousands of requests keeps the site busy to handle requests of your visitors. Experiencing a downtime in your online store is harmful as it exposes it to more vulnerabilities, prevents clients from shopping, and can damage your reputation.

Like viruses and other ransomware, cybercriminals launching DDOS attacks often demand some amount to relinquish their impact and restore your online store’s normal operations. While these attacks can cost your business significant revenue, losing your client’s trust, confidence and reputation is probably the costliest damage from DDOS attacks.

To avoid this, take proactive defensive measures, such as monitoring incoming traffic requests on your servers. Declining illegitimate traffic can help avoid such an overwhelming influx.

  1. Financial Frauds

Most online shoppers trust the use of online transactions when paying for their products or services. However, the increase in the use of online payment methods has attracted financial fraudsters looking to exploit vulnerabilities in these systems. Financial fraud can occur in two main ways:

  1. Credit card theft – this occurs when cybercriminals use stolen credit card information to pay for goods and services from your store.
  2. Fake return and refund fraud – with this, cybercriminals complete fake and unauthorized transactions. Some initiate fake requests for returns.

While it is difficult to trace financial frauds, especially credit card theft, detecting the fraudulent transaction is overly important. Fortunately, owners of eCommerce stores can take note of the following tell-tale signs to stop the fraudulent transaction:

  • A request to ship the product to a different address from the one on the billing address.
  • Successful order followed by several unsuccessful orders.
  • The customers IP address does not match the location on the billing address.

Verifying these transactions before receiving payments and shipping your products can save your store from losses. If you don’t, you will not only pay back the legit owner of the credit card but also lose your inventory. As such, investing in an Address Verification System is prudent.

  1. Malware

Cybercriminals can also design several malicious malwares to damage your systems. Just to mention, malware is a general term for several program hackers use to gain access or damage your computer network. Common malware include:

  • Viruses – these are programs that spread, infect, and damage or corrupt several files and programs.
  • Ransomware – they are programs that alter computer systems’ normal functioning until an action is taken, in most cases, payment of some amounts.
  • Backdoors – hackers use these programs to bypass regular authentication systems to complete fraudulent processes and data theft.

Installing a strong and reliable firewall is the best way of mitigating these threats. You should also work withcybersecurity experts to ensure that your systems are safe.

  1. Bots

Bots are automated programs that perform specific tasks on the internet. Unfortunately, there are both good and bad bots that can promote or bring down your eCommerce store. The majority of these bots aid in installing malware on your computer and abet targeted spear-phishing campaigns. That said, nefarious bots are the most common and harmful automated programs that affect eCommerce businesses.

With bad bots accounting for more than a fifth of eCommerce traffic in 2018, they are a threat to your eCommerce store in the following ways;

  • Promote credit card fraud – some bad bots have been programmed to steal credit card information from sites. Once hackers gather this information, they can make repeated purchases.
  • Account acquisition – there is a big market for login information on the dark web. Hackers can use bots to steal login information and sell them to the biggest bidder.
  • Price scraping – some bots are launched by competitor sites to monitor your product prices, marketing plans, and inventory levels.

Fortunately, avoiding the disastrous effects of bots comes down to simply recognizing them. For this, it is important to secure your eCommerce store with CAPTCHA codes.

Bottom Line

Other significant security threats, such as E-skimming, brute force, SQL injections, and spamming, negatively affect the success of eCommerce stores. As such, online entrepreneurs should implement serious security measures to prevent these threats. Data encryption, using secure payment gateways, and securing websites with SSL certificates are just but a few measures to mention.


Online shopping is growing at a rapid rate all over the world. This growth has become even more formidable during the pandemic as more and more people are opting the convenience of online retail. The exponential growth of the sector has also changed its dynamics. In order to fully comprehend the scope and features of this market, it is important to look at the latest trends. So, here are the key facts about global retail and Ecommerce payment processing scene.

Growth of online market:

Increasing number of people are flocking to the internet for making their purchases owing the pandemic. While earlier online markets were limited to a few products and services, now plenty of items are being brought into its ambit. According to a survey, the size of online market is expected to touch nearly 20 percent of entire global retail sale. This enormous opportunity is up for grabs as businesses are taking their transactions online. In the present scenario, retailers who are not able to make transition to online selling are likely to be left behind. Currently, businesses are shoring up their online presence and are looking to focus on this high growth segment.

Also Read: Top Tips to Become a Global Retailer

Borderless Business:

Another major impact of online business is the rise of borderless transactions. Businesses now have access to international markets, where they can sell their goods and services. They are no longer dependent on local or national markets. While this development has brought new opportunities, it has been accompanied by its share of challenges as well. Global retail businesses may now access new markets, but their own niche markets have become accessible to competing businesses. The businesses also have to revamp themselves to cater to the new markets.

Rise of Ecommerce Payment Processing System:

The rise of international online trade is greatly aided by the development in ecommerce payment processing system. Trans-border internet sales require businesses to have the ability to process foreign currencies. By using the latest technology, you can make global payments online and transform your business into an international entity. These systems come with various features such as fraud protection and phishing protection. You can ensure that your clients’ data remain safe and secure. Apart from letting you accept foreign currencies, such systems also allow you to process payments made through different sources such credit cards and online banking.

Also Read: The State of Global Payments

Focus on Analytics:

Analytics form an essential part of ecommerce business. Analytics lets you collect useful data. With the help of analytics tools, you can get information about your traffic, important markets responsible for such traffic and monetary details. Online businesses also need large amount of information such as their eyeball generation, ecommerce payments and conversion rates. The insights derived through such data is essential for online businesses to draw up their strategies.

Localization of Business:

Ecommerce businesses can cater to both international and local markets at the same time. Online businesses are striving hard to cater to the needs of the various markets. As internet has allowed ecommerce businesses to capture international markets, it has become increasingly important that the products and services meet specific requirements. Your business may need to change certain processes such as payments system to provide the best shopping experience to your clients from all over the world.

Also Read: How to setup your e-commerce store using Payshop


Ecommerce businesses are growing at a fast pace across the world, with technology advancements in the sector making the functions easier and efficient. There are several businesses models which have proved their worth in the market. Each has its benefit and challenges. To make your online business successful, it is essential to pick a model that suits your requirements. But do that, you need to analyze them carefully.

So, read on to know about the various ecommerce business models –

  • Business 2 Business:

    It is also known as B2B ecommerce and deals with products and services provided to other businesses. Some of the main examples of this e-business model is the supply of raw material and products to retailers. This is one of the most common and versatile models of ecommerce businesses. While, this model generally has high volume and scale, it also tends to have niche market, which may impede its growth. Under this model, your organization will not be dealing with the end customer but would be supplying goods and services to intermediaries in the supply chain. It generally uses customized ecommerce platforms for carrying out their operations.

Also Read: The Importance of Starting an Ecommerce Business


  • Business 2 Consumer:

    The B2C model is one of the most commonly used business structures. However, there is a big scope of customization under this umbrella. This type of e-business model features high turnover but relatively lower value per order. Due to shorter turnaround time, the amount of marketing expenses is generally lower. This model is also designed to promote easier pivot as consumers change their taste frequently. The use of technology is more prevalent under this kind of model, with an aim to provide optimal shopping experience to their clients.


  • Consumer 2 Consumer:

    This ecommerce model goes by the name of C2C model and is one of the latest innovations in the area. Under this, consumers are connected to each other for the exchange of goods and services. Such business derives its income by changing listing fees or transaction fees. Some of the most prominent examples of such company are eBay and Craigslist. While this type of business mainly thrives on account of its simplicity, it also faces various challenges such as technology maintenance and quality control. The use of social media has proved to be an excellent strategy for such businesses.


Also Read: The Rise of the Subscription Business Model


  • Consumer to Business:

    C2B business model is an innovative structure where an individual offers products and service to organizations. These individuals are generally highly-qualified and offer services such as writing, artistry and professional acumen including accounting and legal work. Unlike other online ecommerce business models, this structure is loosely regulated. There are no specific rules applicable to this sort of arrangement, which may hamper the growth prospects. The model also tends to deal more with the services than with products. However, with the use of technological tools and changing mindsets, this business model is set to see an uptick in its adoption.


  • Mixed Business Models:

    Ecommerce is a highly dynamic field, and therefore, is constantly evolving. In many circumstances, it may be prudent to employ a mix of different business models available. Such customized models fall under the category of mixed business models. However, all the business models are required to use robust online payment methods. Further, such models may also be created by combining different traditional ecommerce business models. The utility of such ecommerce model is greatly enhanced if a proper analysis of the market is done to understand its exact requirements.


Also Read:5 Simple Steps to Launching a Successful Ecommerce Business


It is important to take available information into account while taking any business-related decision. The use of correct and relevant data makes the decision more robust and efficient. However, many businesses have yet to understand the importance of payment related data. While payments are deemed to be a process, it is vital to understand that the information generated by them is immensely helpful in taking various business decisions and carrying out payment processes.

Here are some of the key payment data points which are highly useful for an online organization.

  1. Conversion Rates:

The main idea behind using key payment data point is to improve the customer experience. If the customers are finding the payment setup difficult to understand, then you should take a hard look at the payment processes. Chances are your procedures are too long or tedious for the visitors. Your payment data analytics may also show a large number of people leaving your payment sign up page midway, prompting you to re-evaluate your sign-up


  1. Rate of Authorization:

This tells you the success rate of the attempted transactions. As in how many transactions were completed. The lower rate of authorization implies that the payment process met certain roadblocks on the way. There could be many reasons behind that. For example, the authorization might not come through if the client does not have adequate funds in their accounts or their card may have reached its limit. Other reasons include expiry or misuse of the card. This metric can automate the process, making it more efficient.


  1. Ratio of Chargebacks:

Chargeback rate is one of the most important metrics for a business. Higher chargebacks may indicate a wide range of issues, making it imperative for businesses to pay proper attention to this payment data point. You should look at the occurrence of a chargeback to determine the root cause. Prompt information about a chargeback may allow you to look into its reasons quickly. Additionally, you should find out why it happened. Once you have identified the reason you may work on rectifying it.


  1. Reconciliation of Payments:

Another important exercise needed to be carried out by businesses is to look at the reconciliation of the payments. In simple terms, it refers to the time taken for the eventual cashing of a transaction, that is the time taken by the money to actually hit your bank account. Proper knowledge about this metric can help you in designing an automated process, leading to better liquidity. The reconciliation process can also be automatized for more robust payment data analytics. With the help of this metric, you can identify clients who are prone to late payments, letting your design better collection policy.


  1. Customer Satisfaction:

It is another important consideration. You should know the preferred methods of payment for your clients. This data can be easily collated from the software you use for processing payments. If you use multiple sources of payments, then you can analyze the data to understand the pattern. You can also segregate the data based on various metrics such as markets and products. This insight can help you to tweak your processes accordingly. With such changes, you can retain your customers, and at the same time, attract new ones.


With these key data points, you can improve every aspect of your payment strategy of our online business.

Also Read: Key Points to Know Before Integrating a Payment Gateway into Your Website


The online consumer market has witnessed massive upswing in its development all over the world. The pandemic and the subsequent stall in usual business activities have further fueled the growth of online shopping and transactions. And this surge is especially palpable in emerging economies such as Egypt. The country is witnessing an astronomical rise in its online commerce segment. +50% percent of its population is already using the internet and the penetration rate is expected to grow by leaps and bounds in the coming time period. With its massive population of nearly 100 million and the dramatic growth of internet users, Egypt presents an excellent opportunity for online businesses. It also provides ample scope for online business service providers.

In order to empower the Egyptian online business community with a leading solution, EFG Hermes has joined hands with PayTabs, a leading online service provider in the Middle East. Here’s how this collaboration can help you grow your business online:

  • Offers Seamless Online Payment Process:

    The collaboration between EFG Hermes and PayTabs seeks to make the process of online payments in Egypt smoother, faster and more accessible. With the growth in ecommerce sector, there is adequate scope for this collaboration to make its mark. Both companies deploy latest technologies and tools to make this process seamless. Furthermore, the collaboration resulted in an initiative that grants setup, integration and operations of an online payment gateway completely free of charge during the final quarter of the year for SMEs.


  • Integrated Services:

    The partnership between EFG Hermes and PayTabs ensures that you are able to get a wide range of services with just one contact, PayTabs Egypt. This solution will enable you to integrate its offerings and enhance your business’s synergies. Your business can offer an all-encompassing payment solution to your clients by removing the requirement to interact with multiple vendors, this new collaboration not only helps you save your time and energy, but also cut your expenditures.


  • Ensures Transaction Security:

    Owing to the ever-increasing threat of cyber-attacks, it is important that your business is able to provide data protection services to your clients. Your business requires safeguarding of its own data as well. In such a situation, it is vital that you choose your online payment services providers carefully. PayTabs Egypt is known for using state of the art software to provide protection against cyber hacks and attacks. Its emphasis on security ensures that all tools are up to date and ready to withstand any kind of attack. The collaboration aims to protect both data and funds for all the parties involved.


If you own an ecommerce platform in Egypt that you think qualifies for the SME initiative, apply here

Know more about PayTabs

PayTabs: PayTabs is a top online payment service provider in UAE. While the firm mainly focuses on Small and Medium Enterprises, it offers its services to a wide range of other businesses as well. The company is ever expanding to provide latest services to its clients. PayTabs makes it fast, safe and efficient to make and receive online payments anywhere, anytime, and even track your business’s financial health on a single platform.

The collaboration between these two stalwarts is expected to add a new edge to the online commerce segment in Egypt. With the launch of PayTabs Egypt, businesses of all types and sizes will be able to access cutting-edge online payment services in a holistic manner.

Also Read: PayTabs Payment Gateway Option for Egypt