Business Security Blog

As cyber identity attacks by hackers increase at startling rates, the threat that the rates of users engaging in online transactions will decrease as a direct result of identity attacks – particularly in the area of financial transactions – become all the more dangerous. Indeed, one of the major benefits of e-commerce for a company is the fact that significantly less investment is required by companies in order to distribute their products. If, for example, consumers return to more traditional means, such as purchasing goods via call centre or even “brick and mortar channels,” companies can expect an increase in the expenditures required from them in order to connect consumers to their products. New employees will need to be hired to man the telephones, or be employed in stores and this will increase costs saved by conducting business over the internet.

It is only a matter of time that consumers grow weary of taking risk of using online services if more is not done to provide them with accessible and effective protection, while at the same time remaining user-friendly. The effects, as mentioned above, are two fold. They can include increases of required investments by a company in order to resort back to traditional means of selling products and services. It can also result in losses from obligations to reimburse – at least partially – consumers who fall victim to hackers while conducting business on their websites.

While the risk is clear, one can also witness how there are significant rewards for organisations that address the issue of security head on by providing their users with better protection of their online identity. By doing this, they can retain existing customers, and even attracting more trusting consumers in a cost-effective way.