E-commerce is one of the largest and most thriving online sectors in the world, rapidly accelerating and catering to the daily needs of customers worldwide. There are an estimated 12 million – 24 million eCommerce sites across the entire globe, with more and more being created every single day. According to Statista, by the year 2022, eCommerce is expected to generate $5.42 trillion in sales per year. E-commerce has been a target of hackers and scammers, owing to its humongous growth rate and massive profits. One of the main ways that cybercriminals can gain access to this data is by exploiting weak authentication methods.
The rising risk of security breaches in E-commerce companies has caused havoc in the global online business domain and created a significant impact in the financial domain as well. According to statistics, this industry experiences 32.4% of successful targets on an annual basis. Hackers gain access to sensitive user credentials by infiltrating the database through hacked accounts of store managers, employees or even customers.
E-commerce data breaches are high-scale data infringements, resulting in a massive impact on the company in terms of finances and user loyalty. In 2013, Target experienced a massive data breach wherein the hackers gained access to the payment information of 40 million users. The breach resulted in the company losing $18.5 million in settlements, crushing the company’s revenue and impacting the growth trajectory simultaneously. EBay experienced a massive security breach firsthand in 2014 when hackers used the compromised credentials of three employees to infiltrate the system and hack the personal data of 145 million users.
There have been several drawbacks to the traditional password-based authentication protocol. One of the most prominent factors in e-commerce is the sign-up factor. Whenever new users come across an e-commerce website, they avoid signing up altogether due to the lengthy and frustrating sign-up process. Users have to provide a detailed record of their names, surnames, email ids, and phone numbers and spend an additional amount of time to generate a unique password. This creates friction in the shopping experience and leads to frustration among customers, resulting in them opting out of the sign-up process.
Similarly, even advanced authentication parameters like 2-factor authentication including email or phone number OTP, security codes, push notification verification etc can become a cumbersome experience for consumers. Users get frustrated with the timed OTP protocol, not receiving the verification code on time or having to constantly call customer support to complete a sign-in procedure. These frictions in user experience directly impact the company’s revenue as users may opt out of the buying journey due to inconvenient login and signup methods.
Data breaches in the e-commerce sector can cost companies a fortune. However, financial loss is just a fraction of the overall implication that bestows these companies. You may also see a hit to customer trust and brand reputation, and don’t forget all the blood, sweat and tears that go into remediating a data breach. Let’s dig into the three types of costs that make robust data protection on the front end more than worth the cost.
When one single data breach could put all of that in jeopardy, you begin to see how important it is to ensure that your company can provide undisputed and impenetrable authentication parameters for overall security and to honour the trust of your customers.
FIDO passkeys are becoming an increasingly popular choice for organizations in the e-commerce industry looking to enhance their security and provide top-notch user experience to their clients.
FIDO Passkeys are an evolutionary version of Multi-factor Authentication, based primarily on WebAuthn standards and having Public Key Cryptography as its core working principle. Passkeys help companies completely ditch passwords and use alternative authentication parameters like biometric identity, security tokens etc to complete a login successfully. Passkeys generate two sets of digital credentials (keys) to aid highly secure and frictionless user login - a Public Key (such as username) available within the server database and a Private Key (such as fingerprint, face ID) stored securely within the user’s device.
In conclusion, FIDO passkeys offer several key benefits for organizations in the e-commerce industry, including enhanced security, convenience for users, privacy-friendliness, protection against cyber threats, cost-effectiveness, and ease of implementation. These benefits make FIDO passkeys a popular choice for organizations looking to secure their user information and provide a joyful retail experience for their client base.