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Cybersecurity best practices for e-commerce businesses

by Guest blog October 31, 2025

As e-commerce continues to grow exponentially, so do the cybersecurity threats targeting online retailers. A data breach can cost a company an average of $1.3 million in lost business. For e-commerce businesses, compromised security can mean not only loss of revenue but also devastating damage to brand reputation and customer trust.

To help keep your business safe, we asked the team at Techpresso, a leader in AI and tech news with a newsletter read by over 400,000 professionals from Apple, OpenAI, Nvidia, and more, to provide some cybersecurity best practices for e-commerce businesses, including how to safeguard operations while protecting customers.

Understanding cybersecurity risks in e-commerce

E-commerce websites face unique threats that can take various forms:

• Phishing attacks: Targeting employees or customers to steal login credentials or payment information.
• Data breaches: Hackers infiltrate databases to access sensitive customer data like credit card numbers and personal information.
• Ransomware: Cybercriminals lock critical systems and demand a ransom to restore access.
• Distributed Denial of Service (DDoS): Overwhelming the website with traffic to cause downtime.

As of October 2025, 61% of small businesses reported experiencing some kind of cyber attack in the last 12 months. Moreover, the average cost of a data breach in the retail industry reached $2.96 million in 2025, highlighting the financial stakes involved.

1. Implement strong authentication protocols

One of the simplest yet most effective ways to secure your e-commerce platform is by enforcing strong authentication:

• Multi-Factor Authentication (MFA): Require MFA for all admin and employee accounts. This reduces the risk of account breaches caused by stolen passwords. To make it even stronger, enhance with AI to detect suspicious login attempts.
• Strong password policies: Mandate complex passwords with periodic updates, and discourage password reuse.
• Role-Based Access Control (RBAC): Limit access to sensitive data based on employees’ job functions to minimize internal risk.

2. Secure your website and infrastructure

Your website is the gateway to your business and customers. Protecting it requires multiple layers:

• SSL Certificates and HTTPS: Encrypt data transmitted between your website and users to prevent interception. Google also favors HTTPS sites for search rankings, enhancing SEO.
• Regular updates and patching: Cybercriminals exploit well-known vulnerabilities. Keep your CMS, plugins, payment gateways, and server software up to date to close security gaps.
• Web Application Firewalls (WAF): Use WAFs to block common attacks such as SQL injection and cross-site scripting (XSS). Services like Cloudflare and Sucuri offer WAF solutions tailored for e-commerce.
• Routine security audits: Schedule vulnerability scans and penetration testing to identify and remediate weak points.

3. Protect customer data

Customer trust hinges on your ability to keep their information safe:

• Encryption: Encrypt sensitive data both at rest (stored data) and in transit. Technologies like AES-256 encryption are industry standards.
• Minimize data collection: Only collect information essential for transactions and customer service. The less data you hold, the lower your breach risk.
• PCI-DSS compliance: Use payment processors like Stripe that are compliant with the Payment Card Industry Data Security Standard. This reduces liability and enhances security.
• Data retention policies: Define rules for how long customer data is stored and ensure secure disposal when no longer needed.

4. Monitor and respond to threats

Early detection can minimize damage caused by cyber attacks:

• Real-time monitoring: Tools like Splunk or Datadog provide real-time alerts on suspicious activities.
• Intrusion Detection Systems (IDS): Deploy IDS to detect unauthorized access attempts.
• Incident response plan: Have a documented plan outlining steps for breach identification, containment, communication, and recovery.

5. Educate your team

Employees are often the weakest link in cybersecurity:

• Conduct regular training on identifying phishing emails and social engineering attacks.
• Promote best practices for password management and safe browsing.
• Establish protocols for reporting suspicious activity immediately.

A study by Mimecast shows that 95% of cybersecurity breaches are caused by human error. Continuous training significantly reduces this risk.

6. Backup and disaster recovery planning

Prepare for the worst-case scenario:

• Regular backups: Schedule automatic backups for databases, application data, and website files.
• Secure storage: Store backups offline or in a secure cloud environment to protect against ransomware.
• Test recovery procedures: Periodically test backups to verify data integrity and recovery speed.

7. Additional tips

• Only integrate with trusted third-party providers: When integrating apps or payment solutions, vet providers for security certifications and reviews.
• Use AI and machine learning (ML) models to continuously monitor network traffic and transactions for abnormal patterns indicating potential fraud or cyber-attacks. Companies like AdaptedMind, CoinPanel, and Dermologica use Stripe’s fraud solution, Radar, to prevent fraud and protect customers. In some cases, customers were able to reduce their fraud rates by half.
• Limit third-party integrations: Each integration broadens your attack surface; ensure they serve essential functions only.
• AI can be used to simulate attack scenarios and test resilience proactively.
• Stay updated: Follow security news, regulatory changes, and emerging threats in the e-commerce space. Techpresso’s newsletter is a great place to start!

Stay vigilant to protect your business

Cybersecurity is not a one-time task—it’s a continuous commitment critical to protecting your e-commerce business and customers. With cybercrime costs reaching trillions annually and attacks becoming more sophisticated, adopting these best practices can help you mitigate risks and maintain customer trust.

Start by implementing strong authentication, securing your website, protecting customer data, monitoring threats, educating your team, and having a solid backup plan. Stay vigilant, and your e-commerce business can thrive securely in today’s digital marketplace.

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