ISO 9001:2015

Cyber Security Issues and Challenges in E-Commerce

Dr. Neelam Kapoor

E-commerce, or electronic commerce, refers to buying and selling goods or services and transferring information or assets over electronic networks, primarily the internet. These transactions can occur in different models such as business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer (C2C), or consumer-to-business (C2B). E-commerce relies on digital tools like computers, smartphones, fax machines, barcode scanners, credit cards, and ATMs, eliminating the need for paper documents or physical visits to stores. It covers activities such as procurement, order processing, payment, authentication, inventory management, order fulfillment, shipping, and customer support. Even simple credit card payments using a magnetic stripe reader are part of e-commerce. E-commerce security is a crucial part of information security, focusing on protecting e-commerce systems and data from unauthorized access, misuse, alteration, or destruction. While e-commerce provides significant opportunities, especially in the financial sector, it also introduces new risks such as cyberattacks, fraud, and hacking. Therefore, implementing strong security measures is essential for safe and efficient online transactions. With the growth of mobile computing and communication technologies, e-commerce has expanded across all product segments, from groceries to electronics and vehicles. However, cyber fraud and identity theft remain major challenges, with hackers exploiting vulnerabilities in websites and user systems. Strengthening security protocols for both servers and users is critical for supporting the continued growth and reliability of e-commerce. This study provides guidance for enhancing e-commerce security, ensuring that online transactions are safe, efficient, and trustworthy. The advent of the digital era has led to rapid growth in e-commerce, driven by the combined influence of technological advancement, commercial expansion, and active customer participation. Despite these benefits, e-commerce faces serious challenges, particularly the increasing threat of cyber risks, which undermine trust, security, and the overall stability of online business platforms. This paper critically examines the growing impact of cyber threats on e-commerce, analyzes their consequences, and proposes comprehensive solutions. Major cyber threats such as data breaches, spear phishing, payment fraud, malware, and ransomware pose significant risks to online businesses. Data breaches result in the exposure of sensitive customer information, leading to financial losses and erosion of consumer trust. Spear phishing attacks deceive individuals into disclosing confidential data, thereby violating user privacy and damaging system reliability. Payment fraud, including credit card theft and manipulation of chargeback systems, directly disrupts financial transactions. In addition, malware and ransomware attacks can paralyze business operations and corrupt valuable consumer databases. E-commerce systems face complex cybersecurity challenges due to their reliance on interconnected networks, third-party service providers, and extensive supply chains. Human factors such as user errors, weak security practices, and insider threats further increase vulnerability. The study highlights the urgent need for proactive cybersecurity strategies involving e-commerce businesses, policymakers, and cybersecurity professionals to protect digital trade. Furthermore, in view of the continuously evolving cyber threat landscape and the expanding e-commerce economy, cybersecurity regulations must adapt dynamically to ensure sustainable and secure online commerce.


DOI:

Article DOI: 10.62823/IJGRIT/03.04.8388

DOI URL: https://doi.org/10.62823/IJGRIT/03.04.8388


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