Retail and e-commerce are the beating heart of the digital economy. They are industries that attract millions of consumers who browse sites, provide sensitive information, and make purchases without thinking twice. While these industries have driven impressive growth for the companies within them, they have also increased the vulnerability of customers and companies to cybercriminal schemes. Data breaches, sophisticated fraud schemes, and identity theft are just a few of the multiple means of manipulation—the kind that can not only cause financial loss, but also ruin a company’s reputation. As such, it is vital for companies in the industry to identify the biggest threats and embrace proactive strategies to keep them at bay.
Common Forms of Digital Manipulation
One of the strongest threats to security in e-commerce retailers is spoofing, in which criminals utilize websites, emails, or other pieces of data from one organization to convince a target that they are dealing with a legitimate company. Another is e-skimming, in which criminals insert malicious code into companies’ websites, stealing customers’ personal information. This type of attack occurred to Macy’s in 2019, when attackers injected malicious code into its checkout and wallet pages in order to capture customers’ names, addresses, emails, and payment details (including card numbers and CVVs). Then there is cross-site scripting, involving the injection of malicious codes into trusted websites. Attackers then use the web to send a packet of code to a customer’s computer. The latter spots nothing unusual about this script and executes it, allowing the code to read any personal information stored within the browser.
Preying on Human Behavior
Hackers sometimes utilize their knowledge of human behavior to further their goals. Social engineering tactics are particularly prevalent in the retail and e-commerce sector, where they can be considered psychological rather than technical hacks. Common scams preying on human nature include phishing, tailgating, watering hole attacks and baiting. Phishing typically involves the use of urgent language to get users to behave in a specific way. Tailgating occurs when attackers follow employees into restricted areas (for instance in a retail store), pretending to be a staff member. A third means of manipulation is compromised business emails, in which threat actors pose as trusted people such as partners or vendors. Finally, baiting lures victims with promises of free gadgets and downloads, exclusive deals, or new software. An example of user manipulation occurred in 2025, when attackers utilized spear-phishing, impersonating staff to reset passwords. The result was a ransomware attack that froze online sales for months, causing losses amounting to £300m ($403m).
The Rise of Fake E-Commerce Ecosystems
Another growing threat involves setting up fake online stores. Cyberattackers utilize black-hat SEO techniques to push fraudulent sites to the top of search results, tempting users to click by offering heavily discounted products. Customers make purchases, only to never receive what they bought, or to receive counterfeit or low-quality goods. These scams tend to pop up during high-consumption seasons, such as Black Friday and the festive holidays. For instance, a fraud ring in China launched over 76,000 fake luxury storefronts, copying high-end brands such as Rolex and Gucci and targeting customers in Europe and the US. Around 800,000 people fell for the scam, with over half sharing their card details, putting themselves at risk of financial losses and identity theft. In 2025, brand cloning also occurred in India. Specifically, fake sites mimicked Amazon and Flipkart, using ads on Meta and promises of cashback rewards to collect card data before disappearing. Victims received nothing, while scammers routed the stolen funds through a series of accounts during the busy festival sale period.
It’s a tough time for retail and online stores wishing to protect customer data and maintain their reputations. Scams such as phishing, spoofing, and e-skimming exploit customer trust to hack into systems and/or obtain credit card details. Criminals are growing increasingly sophisticated, with schemes such as brand cloning and fake stores luring unsuspecting customers to part with their money for nothing. It is vital for these stores not only to take robust cybersecurity measures against threats, but also to raise awareness among staff about key retail and online security measures.
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