Starting an Online Business All-in-One For Dummies, 7th 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 $37.4 billion in financial losses in the five-year period from 2019 to 2023, as reported by the Internet Crime Complaint Center (IC3), which is a joint effort between the Federal Bureau of Investigation (FBI) and the National White Collar Crime Center that was established to track cybercrime. Founded in 2000, the government-based organization receives more than 750,000 complaints from U.S. consumers each year, or approximately 900 complaints every day. These complaints represent only a small percentage 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, extortion (including ransomware attacks), data breaches, and nondelivery of payment or merchandise, including ...