Payment processing online comes with risks just like any method of payment, but sometimes just talking about “security” isn’t enough to really understand what those risks are. Sometimes what retailers need is a cold dose of reality in the form of statistics to really feel the full impact of the effects of payment processing cybersecurity.
There is no way to be 100% risk free when it comes to your payment processing cybersecurity, but retailers can take steps toward fighting the threats against retail, and that starts with being educated. On a silver (blog) platter, Payline is ready to serve up some knowledge on the 5 cybersecurity numbers that retailers need to be aware of. Rest assured though, this is to educate against cyber attacks, not induce fear because knowledge is power.
That’s not a typo. There are 15 million identity fraud victims in the U.S. and in fact, this number rose 16% in 2016 from years prior. While no one can predict what is in store for 2017 fraud, we do know that a recent influx of data breaches are occurrences retailers need to learn from in order to lower this number in the future.
This is the cost of a data breach per record, or per credit card, for retail in 2016. Take a moment to consider this. When a company experiences a data breach, it is not only one person or one bit of data that is affected and costing exactly $172. Multiply that by hundreds of thousands of customers and suddenly, it’s no longer just $172. Data breaches come with a real price tag, and it’s not typically a small amount, especially according to Cimcor tech writer Jacqueline von Ogden
This number was the highest calculated cost compared to other industries outside of retail, where the cost per record was $158. When you also consider costs of hiring consultants to deal with the fallout and other breach fees, it starts to add up.
Malware struck this many eCommerce websites by the end of October of 2016, and among many possible reasons for this high number, one could be lack of malware knowledge. In fact, von Ogden sheds a different light on this number by noting 5 places that malware and ransomware may be lurking that some businesses don’t think to look. Eddie Bauer was one who particularly struggled with malware infection in their store POS systems, allowing hackers access to credit card information.
This is the percentage of cyber attacks that were attributed to ShellShock in 2016, higher than previous years. ShellShock is a “vulnerability” in the GNU Bash shell that is largely used on Linux and Unix operating systems. It allows an attacker to gain control of and exploit a computer by targeting the “Bash”, or the command language interpreter, and be able to type commands into a simple text-based window. The operating system then runs these commands, regardless of who is typing them. This method allowed for the hacking of thousands of eCommerce retailers.
Pay close attention, because this may be the most important number of all 5. Nearly one-fifth of consumers said that they would cease shopping at a business that was infiltrated by cyber hackers, even if the problem was addressed and remedied.
Trust is a precarious possession, and it is far easier lost than gained. This was proven by a survey with audit, tax and advisory firm KPMG. This indicated that in addition to that 19%, 33% of shoppers wouldn’t shop at a retailer within three months of a cyber attack out of fear.
Now take a moment and take a deep breath. Yes, these numbers should make an impact in how you as a retailer look at cybersecurity with payment processing. The good news from these slightly unnerving statistics? You can learn from them.
As there are more developments in payment processing technology, cybercrime is becoming more complex and dangerous to retailers. Digital assaults are a lucrative market for hackers, being able to extend their impact to so many so quickly and easily, and unfortunately it isn’t a matter of if more attacks will happen, but rather who will be targeted next. This is why preparation against attacks on cybersecurity are vital.
55% of retail executives had admitted to not investing in payment processing cybersecurity over the last year, a big mistake. Others tend to place all their bets on one security measure like PCI compliance, while some, like these retail executives, haven’t given it thought. PCI compliance is a no-brainer when it comes to security, and Payline can provide the right solutions to make this and other security measures protect your business from cybercrime.
Cyber attacks will always be a concern as payment processing technology develops, but there will also always be ways to combat them. Payment processing cybersecurity varies from retailer to retailer, but the bottom line is that merchants should always be putting up as many security walls as possible.
This piece was written by Lauren Minning, Content Specialist for Payline.