3 eCommerce Security Threats And Solutions

Guest post 15.11.2022. Reading Time: 5 minutes

In 2020, security incidents rose by 20% for eCommerce businesses. Inventory shrinkage and cybercrime can devastate a business and cause significant financial loss. Breaking GDPR compliance could also result in lengthy legal processes.

Are you looking to minimize security risks for your eCommerce business?

Keep reading as we discuss the three main eCommerce security threats and solutions, along with the solutions that can help you to prevent and mitigate these risks.

eCommerce Security Threats

Retail Shrinkage

Retail shrinkage is a big problem for eCommerce businesses and can often go unnoticed due to a lack of inventory insight. One might take several approaches to reduce the impact of retail shrinkage on their eCommerce business.

The first approach would be to invest in a more secure warehousing facility. If your warehouse facility is unsafe, you will be more vulnerable to theft, causing retail shrinkage. Some of the best technologies to look for in a warehousing facility include:

  • Surveillance – you need assurance from your warehousing facility that nothing can happen without being recorded. Look for a warehousing facility that has used the help of security professionals to install a surveillance system with NVR cameras to ensure there are no blind spots. It can also be helpful to look for a facility with cloud-based video surveillance, making video feed information accessible from anywhere using a mobile application or cloud-based control center.
  • Sophisticated access control – more than a simple locking system is needed when it comes to building security. You can easily pick physical locks, and warehousing units are targeted by criminals frequently. So, look for a warehousing facility with keycards, fobs, or mobile credentials for access control.
  • Facial recognition – if you want assurance that no unauthorized user can access the warehousing facility and steal your products, opt for a warehouse implementing facial recognition software. Surveillance and facial recognition at the building’s entrance will verify all users’ identities, eliminating the risk of someone entering with stolen access credentials.

The second approach to reducing the potential for retail shrinkage would be to improve your inventory management so that you can spot missing inventory quickly. One of the best ways to improve your inventory visibility is to implement inventory management software, which enhances and automates your inventory management processes in the following ways:

  • Using RFID codes to track inventory – when employees manually perform inventory counts, there is a margin for human error. By using RFID barcodes and scanners, you can gain assurance that all your inventory is accounted for, reducing the potential for anomalous data due to human error.
  • You can view your inventory levels anytime by providing real-time visibility with inventory management software. So, if there are any anomalies in your inventory data, you can spot them immediately to address the issue. Hastening your response to anomalous data may help you to resolve the issue more effectively.

Data Breaches

Data breaches seriously affect businesses, not just those in the eCommerce sector. However, eCommerce sellers need to use many data sharing and cloud-based tools to perform daily operations, leaving them vulnerable to a data breach or cybersecurity attack.

To prevent a cybersecurity attack or data breach, eCommerce businesses can implement the following strategies:

  • Investing in a VPN – when you access the internet, a motivated third party could access your location information. A VPN assures that your IP address remains hidden while you browse the internet by rerouting your internet activity through one of its servers. So, if you suffer a cybersecurity attack, the only IP address the attacker can access is your VPN’s server. Nikola Mladenovic from VPNBrains emphasizes the importance of this feature, stating, “Using a VPN is one of the simplest yet most effective methods for protecting your online identity and personal information. It acts like a digital cloak, masking your real IP address and making it much harder for cyber attackers to target you directly.
  • Encrypting sensitive data – encryption makes your data unreadable to anyone who intercepts it. The tool uses an encryption code to scramble your data, and only you have the cipher to make your data useful and readable. This limits your exposure should you fall victim to a security breach.
  • Performing software updates regularly – as an eCommerce seller, you’re likely to use many SaaS platforms and software. When your provider updates the software, it covers any vulnerabilities in older versions. Updating your software as soon as possible ensures there are no vulnerabilities or gaps in your software that a cyberattacker could take advantage of.
  • Knowing how to spot phishing scams – phishing scams are deceitful messages that you might receive via text, email, or social media. These emails claim that your account is at risk or that you must take action for one of your accounts, attempting to obtain your personal information and passwords. Knowing how to spot phishing scams can help you to reduce your cyber vulnerability.
  • Using firewalls – a firewall is a cybersecurity measure that keeps your network secure by monitoring incoming and outbound traffic. A firewall will spot anomalous or untrustworthy sources, preventing them from accessing your network.
  • Improving your password health – weak or easily guessed passwords will leave your accounts vulnerable. You must ensure that you use strong and unique passwords across all accounts. Password management software can act as a digital vault for your passwords, allowing you to retrieve your password information from a secure location. The software monitors your password health and alerts you if one of your passwords becomes breached.
eCommece Security Threats and Solutions

Employee Error

If you have employees working for your eCommerce business, this increases your security vulnerability. Human error is one of the leading causes of cybersecurity breaches, which is why you need to provide your employees with proper cybersecurity training and cover yourself in terms of an internal security breach.

Although some employee-origin security breaches are accidental, some are intentional attempts to steal your data (poaching clients, valuable information, and resources). So, you need to consider your risk when it comes to your employees.

Here are some of the top preventative measures you can take to reduce your risk for employees:

  • Implementing zero-trust – you may have employees working at your eCommerce company, and implementing zero-trust can limit your exposure to an internal cybersecurity breach. An employee may attempt to steal your data or fall victim to a phishing scam that leaves your data vulnerable. By implementing zero-trust, you only grant your employees access to a limited amount of data they need to carry out daily operations. This means that if their device or account is compromised, only a limited amount of data will be leaked.
  • Cybersecurity training – you need to provide your employees with training that will prevent them from making errors that will lead to data exposure. Some of the top points to cover in your cybersecurity training include:
  1. Spotting phishing scams – as mentioned earlier, your employees need to know how to spot malicious attempts to harvest their data.
  2. Updating software – educate your employees on the importance of updating their software regularly.
  3. Reporting suspicious activity – your employees need to be aware of the importance of reporting incidents or suspicious activity on your network.
  • Establishing cybersecurity policies and best practices – one of the best ways to ensure your employees do not cause a security breach at your business is to establish best practices and procedures. For instance, you might set a policy that all employee devices must have cybersecurity protection. You can also implement password management software to ensure employee passwords are strong and unique.


If you’re running an eCommerce business, physical and cybersecurity must be top of mind. Falling victim to a security breach could affect your profit margins and lead to legal ramifications. Consider your business’s vulnerability to the security threats listed in this guide. Then, determine which security tools and protocols are a priority for your overall security strategy.


Emila Smith
Guest author