Cybercrime is any criminal activity that is carried out by the use of computer and internet. With the increased use of the internet, cyber crimes have also increased. It is the easiest way for criminals to make a large amount of money, without getting traced.
According to a recent survey, one out of 10 people in developed countries are a victim of cyber theft. Cybercrime is 20 times more likely to happen than the conventional crimes. Last year, there were nearly 6 million cybercrime offenses alone in the UK. Any person who uses the computer is vulnerable to cyber theft.
Cyber crimes impact the trust of customers on online shopping. Hence, all marketing strategies can fail if customers do not trust online shopping websites. Cybercrime is not easy to control. The recent events of hacking of Twitter accounts of Twitter CEO and Facebook Founder (Mark Zuckerberg) gave a signal that even large tech giants are also not protected from hackers.
A recent survey by PWC (Price Water House Coopers) revealed that some companies are even losing $5 million due to data theft. Some companies losses even exceeded by $100 million. Moreover, a lot of customers’ credit card and personal information is also compromised in this process.
The reason for the increase in cyber thefts is the higher profit margins in the crime. There is a little/no cost to perform this crime and hackers can take away almost all the money present in the accounts.
If a customer becomes a victim of cyber crime from one site, he will be very cautious for all other sites and it will dramatically impact his online buying behavior. Hence, prioritization of data security by the company is very important.
In the past decade, consumers were not hesitant about revealing their personal details and credit cards information on internet. However, the trend is changing. Fear of theft is changing the consumers’ behavior. A recent US government survey revealed that 45% of Americans have decreased their online buying activity due to concern of cyber theft. Hence, they are doing online shopping only on those sites which they think are reliable and safe i.e. Amazon, Ebay etc.
Unfortunately, Cyber crime startups are on the rise. Their first step is to identify vulnerabilities in the security system of large businesses. They make those vulnerabilities public and later on get businesses in return of their ingenious hacks.
Despite all the security risks, not all companies take effective measures for their data security. Banks and credit card companies face the major risk of cyber theft. The companies must realize that improving their cyber security is the only way that they can generate more businesses. Decline in credibility can lead to disastrous decline in their profits.
The best way to cope up with cyber security threat is to design and implement a cyber security strategy. Moreover, protecting the most important assets of the Company that can cause greatest loss in terms of revenues and customers information is also important. Moreover, realizing everyone in the organization about cyber security threat is very important. It will develop a cohesive environment which will keep everyone in organization alert about cyber security threat. Without strengthening cyber security, the loss to corporations can become uncontrollable.