The FBI posted multiple public service announcements in December 2024 warning of the top scams to watch out for. New innovations that have made scamming an even more accessible activity. AI has resulted in more realistic and natural sounding phishing emails, believable advertisements for fake products, real-time face swapping tools and even cloned voices. According to the FTC, 20% of imposter scam targets in 2023 resulted in lost money. Earlier this year, a French woman who had recently divorced her husband, handed over almost all of her divorce settlement -nearly $800,000- to a scammer claiming to be Brad Pitt in order to help fund medical treatments for his kidney cancer. AI generated images of the celebrity in a hospital bed may have been the difference between an innocent person’s financial security and a criminal’s most exciting pay day to date. Scams have become more believable and even more difficult to detect, which is why it’s so important to protect your personal data.
For retailers in the eCommerce industry, you have a responsibility to help your customers stay safe and keep their data secure. Here are a few strategies you can start today to protect you and your customers from fraudulent activity online.
Use Artificial Intelligence Wisely
AI can be a valuable tool for automating monotonous tasks that would normally require a lot of extra work from your team. However, machine learning relies on huge quantities of data in order for it to be effective and useful, which can increase the risk for data to leak. When implementing AI tools, consider whether or not it is a necessary solution, and always make sure the tools you choose are compatible with your data security strategy.
Encryption
Encryption involves the conversion of sensitive data into code, so the data itself is protected from cyber threats. It works by scrambling or translating the data in such a way that only the owner of the data can decipher, making unauthorized access impossible as fraudulent actors who do intercept the data simply won't be able to read it. Retailers can leverage encryption methods to protect customer payment details, personal identification information, and purchase history, however, it's important to continue to assess the best strategy as technology continues to evolve.
Use a CRM
Retailers often have to manage vast amounts of sensitive customer details, luckily, there are many customer relationship management tools you can use to organize and protect customer data. Tools such as Hubspot and Zoho are available for retailers to use that not only help to maintain security compliance and protect customers from fraudulent activity, but can also benefit retailers who are looking for solutions to manage customer information for efficiently.
Multi-Factor Authentication
Before a customer is ready to enter their sensitive information, they should be given at least one barrier such as security questions, one-time passwords, app-generated codes, biometric authentication, or single sign-on (SSO). The best way to verify the identity of your users, however, is to employ multi-factor authentication which is simply a combination of any of the aforementioned methods of verification. Multi-factor authentication relies on a variety of different ways a customer has to confirm they are who they say they are, thus preventing identity theft.
Stay Up-to-Date on Privacy Laws & Regulations
The best way to protect your customers from malicious cyber activity is to stay informed about new regulations that come as a response to increasingly sophisticated internet crime. Federal and state level regulations continue to appear, and it's integral for your business success to remain compliant for the sake of your customers' safety and your own. Read our blog post about some recent regulations to catch up on what's new.
Scams are getting more efficient and more frequent. As technology evolves in our favor, there’s always malicious actors waiting to capitalize on vulnerabilities while we work out the kinks. You can report scammers to the better business bureau and the federal trade commission online. You can also report identity theft if you believe your or your customers' personal data has been stolen. To check your devices for viruses, you can run antivirus scans to identify malware.
Your eCommerce platform could be the thing holding your business back from true success. Whether it’s optimizing your website’s security, adding more payment options or tackling complex eCommerce integrations that your team can’t handle themselves, Virid has seen it all and probably written a blog post about it. Our award winning eCommerce platform is ready to tackle any complex eCommerce integrations and more. Contact us today to discover your website’s true potential.
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