Business Security Blog

While all of these hacking approaches are unique, these diverse attacks are all made possible due to the inherent weaknesses of password-based, single-factor authentication used by companies conducting business to consumer commerce online. After all, the moment that an online hacker manages to acquire the user identification and password of an unsuspecting consumer, he has everything necessary to access the victim’s online account. Unlike traditional forms of identity theft, the online attack can come from the opposite end of the world and only a small percentage of users need to be reached in order to result in the compromise of a considerable quantity of user information.

And though stronger authentication policies are beginning to be adapted by increasing numbers of firms that conduct business over the internet, the continuing reliance on simple passwords in the vast majority of transactions conducted via the internet enables cyber fraud to continue to grow.

One of the reasons why single password systems remain in place, despite their obvious frailties is to actually accommodate the desires of consumers. Indeed, the problem of single user passwords is compounded by the fact that research has demonstrated that consumers frequently prefer convenience and usability over increased layers of security when conducting business online.

In any case, many online organisations provide some or even complete reimbursement for losses from the fraudulent attacks made on consumers using their company websites. This, naturally, results in significant costs to these firms and provides considerable incentive and a valid business justification for dealing with this issue without delay. In any case, it is not merely the financial cost for businesses that provides incentive for these same businesses to implement security for handling transactions over the internet and this is not the most important impact or hazard from online identity theft.