Online retailers could lose £5.9 billion through cyber-attacks

By Sophie Nutt | 08 June 2020 | Movers & Shakers, News

Cyber Security

Online retailers could lose £5.9 billion through severe data breaches each year, based on the average cost and frequency of cyber-attacks in the e-commerce sector.

Research published by cloud solutions company, iomart, analyses the financial impact of ‘typical’, ‘severe’ and ‘catastrophic’ data breaches to reveal what each could cost top companies and social media platforms.

A massive 87% of retail purchases are made online – excluding groceries – resulting in the B2C e-commerce market currently being worth an estimated £189 billion. However, research reveals that an average of 43% of businesses experience a cyber-security breach each year. The biggest reason for data breaches within the e-commerce sector is flaws in payment systems.

With data breaches on the rise as a result of compromised security systems during the Covid-19 crisis, it’s of paramount importance that online retailers protect customers’ data.

“These figures are a stark warning about the importance of investing in data protection,” says Bill Strain, chief technology officer at iomart. “Many smaller retailers wouldn’t survive the operational impact of a successful cyber-attack, let alone the financial one of a punishing fine on top. Looking at your potential risk and knowing where your data is, controlling who has access to it and making it secure should be an absolute priority.

“It’s still the case that most cyber-attacks start by exploiting our human vulnerability. By training staff to spot suspicious emails, login attempts or links you can lock the front door and then use technological solutions to ensure the hackers can’t get around the back.”

iomart recommends the following steps to create an effective defence against cyber-attacks:

  • Keep IT systems and software up-to-date.
  • Store sensitive data separately.
  • Control users’ access and privileges.
  • Secure the email gateway.
  • Do regular off-site backups of your data.
  • Provide regular security training for all staff.

View the full report from iomart here.