One of the biggest eCommerce data privacy issues↗ remains data breaches, with an average of more than 130 security attacks per organization annually↗. Data breaches are also becoming costlier, with the average cost of a data breach in the U.S. at a steep $9.44 M↗. eCommerce is particularly precarious when it comes to data breaches. With mobile threats increasing and hackers becoming more sophisticated, online businesses must take proactive measures to prevent data breaches and minimize the damage when they occur. Below, we've highlighted the most significant threats along with prevention measures you can implement. » Inexperienced with data privacy? Consult this guide to data privacy in eCommerce↗
1. Stolen Information
Stolen information typically involves hackers attempting to steal your customers' credit card information or personal details. This data breach affects your online store↗ when hackers can intercept transaction details during the checkout process. Alternatively, stolen information can result from human error, such as an employee leaving sensitive information or trade secrets unsecured.
How to Prevent Stolen Information:
- Strong encryption: Keep customers' credit card information safe once submitted.
- Two-factor authentication: Confirm it's really the customer making the transaction.
- Educate your customers: Teach customers how to recognize phishing attacks to encourage vigilance from their side.
2. Password Guessing
During this type of data breach, hackers repeatedly attempt to guess login credentials or answer security questions correctly to get access to the relevant account. Some employees and customers make the grave error of leaving passwords for their computers/accounts on notes or using the same password for multiple accounts. Passwords themselves may be too easy to guess, making it too simple for hackers to gain access to private data.
How to Prevent Password Guessing:
- Additional identity confirmation: Implement two-factor authentication or biometric logins whenever possible to confirm a customer's identity before completing a transaction.
- Strict password policies: This goes for both customers and employees. Set minimum password requirements customers and employees must meet when they open an account. Additionally, regularly audit employee accounts to ensure they're secure.
3. Keystroke Logging
Keystroke logging, also known as keylogging, occurs when hackers use specialized software to track and record every keystroke on a computer or device, allowing them access to confidential details such as credit card information, banking details, and login credentials.
How to Prevent Keystroke Logging:
- Two-factor authentication: Add another layer of security by confirming a customer's identity and intention to perform the relevant transaction.
- Utilize relevant prevention software: Using key encryption software or anti-malware programs can protect customers and employees.
4. Phishing Attacks
Hackers conduct phishing attacks when they send fake emails or messages to your customers, disguising themselves as your company in an attempt to trick customers into providing sensitive information or downloading malicious software.
How to Prevent Phishing Attacks:
- Clear email policies: Implement strict policies for employees about opening email attachments or suspicious links. Also consider using strong spam filters.
- Communicate with your customers: Educate customers on how to recognize a phishing attack and how to react. Encourage them to report suspicious communication so you can investigate.
5. Malware/Virus Attacks
Malware and virus attacks refer to hackers infecting your website or network with malicious software, giving hackers access to your information. From there, hackers can wipe out your data or install ransomware to block users from accessing your site (i.e., holding the data for "ransom").
How to Prevent Malware and Virus Attacks:
- Implement comprehensive security protocols: Place strong encryption programs on all devices (e.g., firewalls, SSL certification) and regularly scan your website for any signs of suspicious activity.
- Invest in anti-virus and malware software: Preventative software can work on both employee and customer levels to add additional security.
Prevention Is Better Than Cure
Being proactive by taking steps to protect your customers' and employees' sensitive information↗ is non-negotiable. But what happens if a data breach occurs anyway? Make sure you have a data breach response checklist↗ in place. Being organized will help you react quickly and minimize damage, not only from the hackers but making sure you comply with all relevant data privacy laws. Consider partnering with a data privacy solution to simplify the complexities of data security and assure customers their information is protected. » Worried about data breaches? Discover how PieEye's data breach protocol↗ can help
How Data Breaches Impact Your Shopify or BigCommerce Store
Your eCommerce platform stores more than just product listings — it's a repository of customer payment data, email addresses, shipping information, and browsing history. When a breach occurs on a Shopify or BigCommerce store, the damage extends beyond your immediate customer base.
If your store uses third-party apps (Klaviyo for email, Gorgias for support, or custom integrations), each connection is a potential entry point. A compromised app can expose customer data even if your core store remains secure. Your payment processor may be PCI-compliant, but your email marketing platform or analytics tools might not be storing data with the same rigor.
The real cost hits your bottom line quickly. You'll face notification expenses (legally required in most jurisdictions), potential fines, forensic investigation costs, and the loss of customer trust. Repeat customers may abandon their carts permanently. New customers may avoid your brand entirely after reading about the breach on social media.
Beyond immediate revenue loss, you'll spend months rebuilding your reputation. Your email list becomes less valuable if subscribers lose confidence in your data handling. Your conversion rates may drop as customers become hesitant to enter payment details. Worse, your store may be delisted from Google Shopping or face payment processor restrictions while you remediate the breach.
The prevention burden falls on you — not just securing your store, but auditing every third-party tool that touches customer data.
The Role of Consent Management in Breach Prevention
Many eCommerce brands overlook a critical layer of breach prevention: knowing what data you've actually collected and why. This is where consent management becomes essential to your security posture.
When you implement a consent management platform (CMP) on your Shopify or BigCommerce store, you're creating an audit trail of what data you're gathering and how customers consented to it. This documentation is invaluable if a breach occurs — you can quickly determine which data classes were exposed and notify only affected customers (not your entire list).
Your Meta Pixel, Google Analytics, and other tracking tools collect behavioral data that's harder to monitor. A CMP gives you visibility into which scripts are firing, what information they're transmitting, and whether that collection aligns with customer consent. If one of these tools is compromised, you'll know exactly what exposure occurred.
From a practical standpoint, consent data also reduces your liability. If you can demonstrate that you collected information only with explicit consent and stored it securely, regulators view your breach more favorably than a company that collected data recklessly. During a data subject access request (DSAR), your consent records make fulfilling the request faster and more accurate.
Additionally, customers are more forgiving of breaches when they trust your data governance. If your consent banner shows you're thoughtful about data collection, and your breach response demonstrates you knew exactly what was compromised and why, customer retention improves significantly compared to brands that appear careless about consent.
Building an Incident Response Plan Specific to eCommerce
Prevention matters, but preparation saves your business when a breach actually happens. Your incident response plan needs to address the unique vulnerabilities of your eCommerce operation.
Start by mapping your data flows. Document where customer information lives: your Shopify database, your email service provider (Klaviyo, Drip, etc.), your CRM, your analytics platform, your customer support system, and any third-party fulfillment partners. When breach forensics begin, you'll need to notify each vendor immediately and confirm whether their systems were affected.
Your response plan should include pre-approved communication templates for different breach scenarios. A breach affecting 50 customers requires a different message than one affecting 50,000. Your legal/compliance team should pre-draft GDPR-compliant notification language, CCPA breach notice templates, and communications for other jurisdictions where your customers live. When you're under time pressure, having these templates ready prevents costly mistakes.
Assign specific roles before a breach occurs. Who contacts your payment processor? Who notifies your insurance provider? Who manages customer communications? Who coordinates with law enforcement? A breach response is chaotic — pre-assigned ownership ensures nothing falls through cracks.
Test your plan annually with a tabletop exercise. Walk through a hypothetical breach scenario with your team, your vendors, and your legal counsel. You'll discover gaps (like realizing your backup recovery takes 72 hours when you need to restore access in 24) before they become real problems during an actual incident.
Finally, ensure your incident response plan is documented and accessible even if your primary systems go down. Store it in a secure location outside your main network — on paper, in a separate cloud account, or with your legal counsel.
Vendor and Third-Party Risk Management for eCommerce
Your eCommerce security is only as strong as your weakest vendor. If your fulfillment partner is breached, your customer data may be exposed. If your email service is compromised, your email list becomes a liability.
Start by auditing which vendors have access to customer data. Most eCommerce brands have more third-party connections than they realize — payment processors, shipping integrators, inventory management tools, analytics platforms, customer data platforms, and support chat software all touch sensitive information. Create a spreadsheet listing each vendor, the data they access, and their security certifications (SOC 2, ISO 27001, etc.).
Request security questionnaires from critical vendors. Ask about their breach history, their encryption methods, their data retention policies, and their incident response procedures. Vendors who refuse to answer these questions should trigger a red flag — consider replacing them.
Include data protection clauses in your vendor contracts. Specify what data they can collect, how long they can retain it, and what happens if they're breached. Many vendors will agree to notify you within 24 hours of discovering a breach affecting your data. This contractual obligation gives you legal recourse if they're negligent.
Monitor vendors for security updates and breaches. Subscribe to vendor security bulletins and follow them on official social media channels. If a vendor experiences a breach, your incident response plan should include procedures for notifying affected customers and resetting credentials if the vendor stored passwords or API keys.
When you switch vendors, make sure the old vendor actually deletes your data. Many breaches involve hackers accessing outdated backups from vendors that no longer work with the company. Require written confirmation of data deletion and include it in your offboarding checklist.
As your eCommerce operation grows, managing consent, tracking vendor risk, and maintaining incident readiness becomes increasingly complex. A dedicated solution that centralizes consent management, tracks customer data across integrations, and streamlines breach response workflows helps you maintain compliance without diverting engineering resources away from product development.