The World Economic Forum (WEF) 2023 Global Risks Report states that cybersecurity ranks
among the top 10 global risks both currently and in the future. The annual cost of cybercrime is
expected to reach US$10.5 trillion by 2025

Data from Barracuda, a cybersecurity company, shows that cyberattacks are more effective during the summer, when companies are short-staffed. In January, only about 1 in 80 (1.25%) threat alerts were serious enough to warrant a security alert to a customer, rising to 1 in 5 (20%) between June and September.

Cybersecurity is a growing concern also in the Baltic region, which is home to the rising number not only of foreign-owned companies, but also small and medium-sized businesses, that more and more often become the key targets of cyber assaults.

As the summer holiday season approaches, businesses are urged to remain vigilant against a surge in cybercriminal activity. During this time, many companies operate with reduced staff, making them prime targets for hackers.

This comes even more alarming since many consumers globally spend more and more online. The recent PayPal e-Commerce Index reveals that the average monthly spend on online shopping in the set year-on-year increased by 17% in the UK and Spain, by 12% in Italy and by 11% in Germany. More money being spent online combined with an increased number of fraudulent activities force businesses of all sizes to employ data and payment security measures that protect client data and integrity.

In the digital age, all companies operating within the online space must remain vigilant as a single breach can jeopardize years of trust and hard work. This concerns not only the biggest market players, who employ an army of people specialising in security management issues, but also startups and smaller businesses who often have limited resources in this field. In their case, co-operating with a reliable payments partner can help them protect themselves and their customers against different types of frauds. At the end of the day, providing a secure shopping experience not only helps protect the business but also fosters customer loyalty and confidence, ultimately strengthening the business’s reputation, and delivering more revenue –

says Efi Dahan, VP, General Manager, Central and Eastern Europe and Israel at PayPal.

As the summer holiday season approaches, PayPal has prepared a short guide that can help merchants protect themselves and their customers against scams and other cybersecurity threats.

1. Stay alert: constant vigilance is crucial. Cyber threats can occur at any time, especially during busy periods like summer holidays, Black Friday shopping festival or Christmas. Monitor your systems for unusual activities and be prepared to respond quickly to any suspicious activity. Multiple orders of the same item or various orders shipping to a single address can be red flags. Unusual customer behaviour, such as trying to recover the password multiple times or logging from other locations, should also raise attention.
2. Make sure your software is secure: update your software on regular basis to patch vulnerabilities that cybercriminals could exploit. Use security software to help protect against malware and ensure your systems are compliant with the latest security standards.
3. Use trusted payment methods: clients, both domestic or international, naturally lean towards payment methods they recognize and trust, hesitating to use options they’re unfamiliar with. This inclination can often influence their purchasing decisions in specific online stores. For foreign shoppers, incorporating widely acknowledged payment solutions like PayPal can help. Such platforms instill a sense of security and trustworthiness, as customers can rest easy knowing that if any issues arise, the payment service can help. For merchants, using globally trusted and experienced payment processor can help protect against potential fraud.
4. Educate your customers: Inform your customers about safe online practices, such as recognizing phishing attempts and using strong, unique passwords. An informed customer base can be an additional line of defence against cyber threats.
5. Prevent chargeback frauds: chargeback occurs when a contested transaction is resolved in the cardholder’s (customer’s) favor. If the cardholder’s financial institution agrees with the dispute, it will undo the transaction, retrieving the money from the merchant and refunding it to the cardholder. It is a common cost of business operations. While many of chargebacks are legitimate, others can be the result of frauds. Protection solutions can help merchants automatically manage chargebacks, recovering time and money. Businesses should implement strong verification methods that can check if the billing information a customer inputs matches the billing information on file with the issuer.5 Tips from PayPal on Minimising Fraud and Risk During Summer Holidays

This article first appeared on Fintech News Baltic

Featured image credit: edited from freepik