Cyber crime: the e-retailer's threat

Online sales in the UK generated £58.8 billion in 2010, up eighteen percent year-over-year, according to the figures released by the UK online retail trade association IMRG. December registered a seven percent increase over November and a twenty

five percent growth, as compared to the same month in 2009. Indeed, Christmas proved to be a bountiful period for online merchants with shoppers spending an estimated £6.8 billion online.

Despite this solid growth, e-retailers may face the risk of carefully timed cyber attacks if they are not appropriately protected. Unfortunately, cyber crime will not disappear soon. It may change in mode, it may increase or decrease in volume but one is unlikely to escape its presence.

Security is about balance. Merchants generally seek tools and features to confirm sales transactions as legitimate whilst also working through the myriad of compliance obligations. Consumers want assurance that their account information is guarded and at the same time respond positively to a seamless shopping experience. So what can merchants do? How can merchants counter the threats of data breach and fraud?

Chase Paymentech has developed programming to protect cardholder data and to limit online fraud, as well as set standards for security.

While some merchants understand their obligations, PCI compliance can be a complex process for many merchants to manage. A survey of one hundred retail, financial services and hospitality businesses, conducted by Redshift Research early last year showed that only eleven percent of companies were currently audited and certified as compliant. In addition, thirty five percent of respondents did not fully understand their PCI compliance requirements.

“At the end of the day, PCI compliance is a merchant responsibility - not a luxury,” states Shane Fitzpatrick, MD and President, Chase Paymentech Europe Limited. “Merchants that fail to be PCI DSS compliant could face - in the event of a compromise - significant fines and unquantifiable damage to their brand, reputation and financial performance.”

For further information go to www.chasepaymentech.co.uk.

Image: cyber crime