Friday, June 16, 2006

UK e-commerce sites: Top 10 flaws

UK customer credit card details and sensitive data is at risk because of simple e-commerce flaws, according to a study published this week.

Web server flaws, poor authentication mechanisms and faulty log-out facilities are the most widespread problems, with most flaws caused by relatively basic mistakes, according to security testing outfit NTA Monitor.
The top ten most common e-commerce flaws discovered by NTA Monitor, listed in order of frequency, are:

* Lack of security behind the 'front door' exposes 'root' access Web server flaws
* Logout facility not working: although the web site tells users they have logged out, they are actually still logged in, so anyone using the PC directly afterwards can continue the session with full access to their account
* Predictable authentication tokens: this makes it possible to guess valid authentication tokens to access other accounts on the system
* Web server allows unencrypted access to secure areas: this allows information to be sent in the clear across the Internet - and sniffed in transit
* Authentication token cookie is cached on disk: anyone using the PC directly afterwards can log back into the session with full access to their account
* Authentication fields are not obscured during entry: so people looking over a victim's shoulder can see access details
* Account lockout mechanism does not work: leaving data unprotected from malicious 'brute force' attacks
* No protection against keystroke loggers: this allows an attacker to log confidential information entered by the user
* Weak password mechanisms: system allows users to choose insecure passwords, or there is no facility to change password
* Account enumeration possible: this enables an attacker to repeat attempts until valid user accounts are confirmed

Roy Hills, technical director, NTA Monitor, said, "Our experience shows that simple faults are worryingly common - and on a level that can be exploited even by the most unsophisticated hackers. Given that security issues are the biggest inhibitor for online buyers, we were surprised to find that companies are not sealing their defences more thoroughly."

Customer Registration on E-Commerce Sites

Customer registration on your e-commerce site can offer some big advantages to you as a merchant.

MarketingSherpa's Ecommerce Benchmark Guide 2006 notes that most larger retail sites (79%) have some kind of customer registration and profile system, though many (39%) don't do a good job of selling customers on why they should register. The majority (54%), however, explain that registration provides faster check-out blended with some sort of a discount plan as a carrot.

This information peaked my interest in customer registration and profile systems. Some of the better small business e-commerce software programs allow for customer profiles including: Yahoo! Merchant Solutions (formerly Yahoo Store), Storefront, ShopSite Pro, Monster Commerce, Miva Merchant, osCommerce, X-Cart, and others.

Shopping cart abandonment is the enemy of sales. When you have customer registration, you can you contact those who have abandoned carts (so long as they register before they abandon). One of the slickest ways to improve your conversion rate is to send (automatic or manual) e-mails to registered customers who have recently abandoned their shopping carts. Give them a URL where they can complete their transaction, tell them you'll answer any questions on the phone, and perhaps offer a 5% off coupon if they complete the transaction within 48 hours.

The other advantages of customer accounts, of course, are loyalty and marketing. Order history and wish lists are popular with customers. Plus, you'll have an easy way to contact your best prospects -- those who have purchased from you -- via e-mail.

If you do set up a customer registration system, don't make it mandatory or you'll drive away customers. Instead, induce customers to register by offering an incentive of some kind.