The constant growth in online transactions means that credit card security must be at the top of the priority list for every e-commerce business, particularly with the recent increase in cloud-based applications for financial transactions. At least, you would expect this to be the case, but according to a recent survey by 123 reg, the UK’s largest website provider, the truth falls well short of the expectation.
13,000 small business owners were polled on the subject of Internet security, and the results were nothing short of damning. 50 percent said that they have no disaster recovery plan in place and admitted that they are not prepared for a cyberattack. One in five did not even know who is responsible for handling their online security.
Over 1,000 of those polled stated that they have been the victim of hacking in the past, but perhaps even more alarmingly, more than 1,000 others admitted that they did not know whether they have been hacked or not.
Evolution in digital security
The findings draw the whole issue of digital security into ever sharper focus, particularly given the rising popularity of cloud based technology. This adds an additional layer of complexity and those companies who already have their heads in the sand are likely to have even less idea about the safety and integrity of cloud-stored data. It is essential for both businesses and their customers that they invest in the knowledge and expertise to put data security at the top of the agenda.
The true cost of data breaches
E-commerce sales within the UK see year-on-year growth of over ten per cent, and currently stand at around £60 billion. A sad fact of life is that where there is money, there is always a chance of someone trying to steal it, and cybercrime evolves and grows at the same rate.
Research from Cisco systems has attempted to quantify the true cost of data breaches, and has found that more than a third of companies that experienced data breaches in 2016 incurred losses of 20% or more. It is interesting to note that 90% of companies that fell victim then took steps to improve their systems, but by then the damage had already been done. Companies like Google and Apple know only too well how the adverse publicity attached to a high-profile hacking scandal can do damage that goes beyond the bottom line.
The simple truth is that customers will not tolerate anything less than the best security when they are giving out their financial details. To succeed in the long term, businesses need to wake up and give cybersecurity the priority it deserves before it is too late.