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E commerce is growing. This explosive growth is being observed closely by various groups including cyber criminals who see it as a fertile ground for frauds This criminal activity affects the reputation of internet retailers and opens them to liability claims from their customers
In the last few years, e-‐commerce has gone from being almost nonexistent to completely mainstream. But with the advent of Internet retail commerce, the Internet has also become fertile ground for the commission of cyber fraud.
This fraud affects everyone in the e-‐commerce chain, and can cause catastrophic damage in the time it takes to click a mouse. For customers, cyber fraud can ruin credit scores and expose personal identification data that can result in identity theft. For retailers, who are responsible for the data of their customers that flows through the retailer’s cyberspace, damage can range from lost sales and devastation of brand reputation to regulatory fines and penalties.
There are numerous ways e-‐tailers are vulnerable to cyber crime:
Cyber attacks are not an illusion or passing problem: Just as e-‐commerce is widespread today, so is cyber crime. It has become a risk of doing business, and all companies make some decision involving that risk.
In the cyber world, the danger of loss can be reduced through firewalls, data encryption, and other IT security techniques. But, as with all business risks, losses can still occur despite the best risk management. In cyber crime, there is an “arms race” between perpetrators of crime and preventers of systems breaches, and criminals win all too often.
It can be an intimidating field to enter, as botnets and other cyber fraud mechanisms continually evolve, becoming harder to detect. Some of the most well known retailers and e-‐tailers – including Sony (maker of the PlayStation), Sony Ericsson, and Target Stores – have experienced major systems breaches that compromised personal identification data.
Now technology insurance can minimize or eliminate such risks.
Cyber insurance can pay for: