Starting an Online Business All-in-One For Dummies, 6th Edition

Chapter 1

Understanding Security and Your Risks

IN THIS CHAPTER

Recognizing your liability

Establishing written guidelines

Setting up secure ordering

Gaining third-party approval

Internet-related fraud cost consumers and businesses $2.7 billion in financial losses in 2018, as reported by the Internet Crime Complaint Center (IC3), which is a joint effort between the Federal Bureau of Investigations (FBI) and the National White Collar Crime Center, established to track cybercrime. Founded in 2000, the government-based organization receives more than 350,000 complaints from U.S. consumers each year, or approximately 900 complaints every day. These complaints represent only 15 percent of actual incidents, as most go unreported, according to the IC3.

As both a consumer and an e-commerce merchant, you are vulnerable to becoming a victim of cybercrime. Each year the IC3 receives a large number of complaints involving identity theft and nondelivery of payment or merchandise, including credit card chargebacks. Complaints from both buyers and sellers continue to grow. Technology has advanced ...