Why Identity Verification Is Necessary For E-Commerce Companies

Most consumers who shop online are not even aware of the risks involved when sharing their personal and banking information to purchase goods or services on a website. This is due to the strict regulations and protocols involved when operating an e-commerce website. E-commerce continues to gain in popularity and continues to hit annual highs within the retail industry. Unfortunately, with the rise of popularity comes the rise of cybercrime and malware threats. Various security precautions should be employed to protect not only the consumer but the website owners too. 

Best E-commerce Security Measures
E-Commerce Security

The Threat Of Cybercrime

Cybercrime is a real threat to individuals and companies who store personal or financial information in order to conduct business. The main types of cybercrime include:

  • Identity theft – the misuse of personal information
  • Hacking – the act of misusing or shutting down networks or websites
  • Phishing – emails that intend to collect personal information to commit crimes
  • Inciting hate or terrorism 
  • The distribution of child pornography or the act of grooming children for sexual purposes

Cybercrime is taken seriously in all countries and rightly so. Businesses and consumers are constantly urged to take their personal information seriously and to take steps in protecting themselves from cybercrime and potential online threats. Strong and reliable security measures exist to keep criminals at bay and discourage the act of online fraud or crime. Unfortunately, no website or system network is 100% safe and secure but with the implementation of proper security measures, the chances of being hacked or experiencing data breaches are significantly minimized.

Best E-commerce Security Measures

There are various security measures e-commerce sites can install to protect themselves from cybercrime and fraud. These security measures should include:

  • Secure e-commerce platform
  • Not storing sensitive data or personal information
  • Strong passwords
  • Layered security
  • Proper and constant email and online security training for employees
  • Alerts for suspicious activity or malware detection
  • Secure checkout connections
  • Use secure hosting companies
  • Perform regular security scans
  • Use tracking numbers for online orders
  • Run regular back-ups
  • Employ fraud management services
  • Regular updates and system patches
  • Continuous site monitoring
  • Use identity verifications systems

Identity or address verification systems are a crucial security measure to employ in order to protect the consumer and e-commerce site from credit card fraud.

Why Identity Verification Is Needed?

Not only does identity verification protect consumers and sites against fraud, but it also reduces online shipping errors, makes checkouts quicker and safer, makes mobile transactions safer, and adheres to compliance requirements set out by state and federal laws. Identity verification systems also ensure that no underage transactions are permitted, therefore, ensuring websites are operating within legal parameters and regulations. By using an identity verification service from service providers such as Cognito, you can stop online criminals from signing up to your services with the intention of committing fraud. Cognito ensures that your consumers are using real identities associated with their personal numbers. 

Cybersecurity is the most important consideration for e-commerce sites and should be optimized and managed on a continuous basis. Avoiding legal issues, data breaches, and reputation damage are of utmost significance to any e-commerce site business owner who wants to offer their clients a safe and secure way of shopping online. Ensure your security practices are up to standard and install identity verification services today!

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