Cybercriminals are on the prowl: almost every month, we read about another cyberattack, which is often successful. Because of the nature of the data collected, the eCommerce industry, like the financial sector, is a popular target for hackers. Personal information handled by enterprises in this industry can be sold on the black market for a high price, and the numerous financial transactions in eCommerce are excellent for fraud.

It’s no surprise that businesses are investing more and more in mobile commerce app security. A robust backup is obviously necessary, but applying best practices can reduce the danger of a successful cyberattack to nearly nil. The notion of “prevention is better than cure” is clearly applicable here.

Many e-commerce enterprises sell through both online storefronts and mobile apps. The latter are getting more popular among shoppers, which attracts cybercriminals as simple targets. Their unique situation necessitates a slightly different approach to mobile commerce security.

In our post, we recommend best practices for designing, implementing, and maintaining apps that limit risk to a minimum. Hint: it’s not just about the technology, but also about educating users. Use these ideas to combat weaknesses and enjoy the benefits of mobile commerce without danger.

What are Mobile Commerce Apps? 

The shift from websites to mobile devices has turned the e-commerce scene into a platform for creating m-commerce apps. The simplicity of online purchasing and selling, which was formerly connected with websites, has now migrated to mobile phones.

In essence, m-commerce is a platform that enables the purchase and sale of goods or services over wireless network technology. These wireless devices include tablets, smartphones, and other comparable electronics. This streamlined approach greatly improves the speed and convenience of online transactions.

M-commerce essentially serves as an evolved iteration of e-commerce, offering the same array of services but in a more compact and mobile-friendly format, primarily accessible via smartphones. 

According to Insider Intelligence data, the retail m-commerce industry had a significant transformation in 2021, with sales of $359.32 billion. This represented a huge increase of 15.2% over the previous year.

This extraordinary trend propels us into the predictive world, predicting that by 2024, the powerful mCommerce behemoth will have grown to an unbelievable $620.97 billion.

The core of this numerical tale lies in the ubiquitous presence of cellphones, which have become an integral part of our daily lives. Their significance reverberates through the channels of trade, ushered in principally by the introduction of digital payment models.

The contrast between e-commerce and m-commerce depending on the device used for transactions is clearly stated. Mobile commerce is a more modern and efficient kind of internet buying, with the widespread availability of mobile apps adding to the user experience.

Recognizing the importance of having both a mobile application and a website for online stores is critical since it helps businesses to appeal to a larger audience with different preferences for accessing their services.

Given the expanding popularity of mobile platforms, organizations should clearly prioritize mobile app development. While emulating market leaders’ success may be difficult, staying current on developments in m-commerce app development is critical for being competitive and achieving client expectations.

Securing Your Mobile Commerce App With Useful Techniques 

Ensuring the security of a m-Commerce (mobile commerce) app is critical for protecting user data and maintaining confidence. Here are some methods to protect the security of your m-Commerce app:

Threat Assessment & Risk Analysis 

Begin by identifying potential threats and vulnerabilities that your app may face. Consider the sensitive data you’ll handle, including payment information, personal details, and transaction history. Conduct a risk analysis to prioritize security measures based on potential impact and likelihood.  

Compliance with Security Standards 

Comply with industry-specific security standards and regulations, such as PCI DSS (Payment Card Industry Data Security Standard) for payment processing apps and GDPR (General Data Protection Regulation) for data privacy.  

Data Encryption 

You need to encrypt sensitive data both at rest and in transit using strong encryption algorithms. This will result in the utilization of TLS (Transport Layer Security) for data transmission, protecting every information transferred between different sources.  

Authentication & Authorization 

Make sure to implement strong authentication methods, such as multi-factor authentication (MFA). Also, ensure to deploy proper authorization mechanisms to control access for different app features and data. 

Secure Payment Processing 

To make sure payments and transactions are protected, you need to utilize established and secure payment gateways with encryption for financial transactions. Regularly audit and update payment processing components to stay current with security standards.  

Regular Security Checkups 

Perform routine security evaluations, such as penetration testing and vulnerability scans, to detect and rectify possible vulnerabilities. Ensure the security of APIs through the implementation of authentication and authorization methods and validate and sanitize input to safeguard against injection attacks.  

User Data Protection 

Implement strict data access controls and encryption to safeguard user data. Minimize the data you collect to only what’s necessary for the app’s functionality. Also, regular data backups can prevent data loss in the event of a security incident.  

Incident Response Plan 

Conduct regular code reviews and security audits to identify and address security weaknesses in your app’s code. Develop a clear incident response plan that outlines the steps to take in the event of a security breach. This includes containment, investigation, and notification of affected users.  

Secure Third-party Integrations 

Carefully vet third-party services and libraries for security before integrating them into your app. Additionally, keep third-party components up to date to address potential security vulnerabilities. 

Read Also: The Top Mobile Commerce Platforms for Businesses

By following these security practices and regularly reviewing and updating your app’s security measures, you can significantly reduce the risk of security breaches in your m-Commerce app.

Common Security Threats in Mobile Commerce

Similar to online stores and web applications, mobile apps have many vulnerabilities. Some threats can spread much faster and on a larger scale in their case.

This is true for malware, which can be easily implemented via app stores, as confirmed by the aforementioned Joker example. How can you protect yourself against such a threat? Primarily through constant monitoring. Much, however, lies in the hands of the app store provider, who controls the flow of applications on their platform.

Phishing and its mobile-specific variant, smishing, are also significant threats to mobile apps. Cybercriminals use SMS to send messages posing as an eCommerce company to trick users into installing malicious software or stealing sensitive information.

Man-in-the-middle (MitM) attacks are another risk linked to mobile apps. These attacks exploit network vulnerabilities to intercept and potentially alter communication between two parties without their knowledge. In the case of mobile apps, cybercriminals usually access the smartphone through a rogue access point that mimics legitimate Wi-Fi networks. It could even have a familiar name to the one the user usually connects to. Once they connect to the fake network, the attacker can intercept their data.

Although we usually associate the cyberattacks with the external hackers and organized groups, sometimes they are carried out by the insiders. That was the case of 2020 Shopify data breach, when transactional records of approx. 200 merchants were accessed by two rouge employees. In eCommerce, employees often have direct access to sensitive information, which makes this type of risk more elevated than in other industries.

Due to the use of local storage, mobile apps can become a channel for data breaches where sensitive information like passwords and credit card numbers leaks. This can happen due to various reasons related to the app’s architecture, encryption, insecure APIs, among others.

Even the biggest players on the market are affected by such data leaks. WhatsApp experienced a significant one in 2023, with 500 million users’ data affected. In the case of Honda’s commerce platform, the 2023 password reset hack was hiding in a flawed API.

Vulnerabilities can hide in the code of the eCommerce platforms companies hold their shops on. That was the case with Magento 1.x, which experienced the injection of malicious scripts a few years ago, affecting over 2000 shops, including Tupperware.

Good Practices for Mobile Commerce App Security

Although you cannot forecast every case, you have a significant impact on the security of your mobile commerce app. Of course, users bear a great deal of responsibility as well; their actions and behaviors might allow hackers to get access. However, by implementing the appropriate preventive measures and best practices while creating and maintaining software, you may make their task as tough as possible.

What should you bear in mind? Our recommendations are organized into categories depending on the types of vulnerabilities common to mobile apps. Here’s the ultimate checklist.

Platform-Specific Vulnerabilities

Keep Operating Systems Updated

• Ensure your app supports the latest OS versions and encourage users to update their devices regularly. This minimizes the risk from OS vulnerabilities affecting your app. 
• Implement mechanisms to gracefully handle and notify users about deprecated OS versions.

Leverage App Store Security Best Practices

• Adhere strictly to app store guidelines and leverage any available mobile commerce app security tools and services provided by the app stores. 
• Regularly monitor for any reported malicious apps that may mimic or interact with your app and report them to the app store.

Device-Specific Vulnerabilities

Secure Hardware Access

• Limit access to hardware features (e.g., GPS, camera, microphone) only to those functionalities that are essential for your app. 
• Implement fine-grained control over hardware permissions and regularly audit these permissions.

Ensure Secure Network Communications

• Enforce the use of secure communication protocols (e.g., HTTPS) to protect data transmitted over networks. 
• Educate users about the dangers of using unsecured public Wi-Fi networks and consider implementing additional mobile commerce security checks when such networks are detected.

Data Storage

Encrypt Local Data Storage

• Always use strong encryption to protect any data stored locally on the device.
• Avoid storing sensitive information locally if possible. Instead, use secure backend systems to store and manage sensitive data.

Protect Sensitive Information

Implement secure storage solutions for sensitive data such as tokens or credentials, using encrypted keychains or secure storage APIs. Regularly audit your app’s data storage practices and ensure sensitive data is never stored in plain text.

App Permissions

Minimize App Permissions

• Adopt the principle of least privilege by requesting only the permissions absolutely necessary for your app’s functionality. 
• Implement transparent permission request dialogs explaining why each permission is needed, encouraging users to scrutinize and make informed decisions.

User Interaction

Mitigate Phishing and Social Engineering Risks

• Educate users about the risks of SMS phishing (smishing) and app-based social engineering attacks. Implement in-app mechanisms to verify the legitimacy of communications and provide clear guidance on how to recognize and report suspicious activity.

Encryption is an excellent shield against cybercriminals, but you must know which solution suits your needs best. Encryption methods divide into symmetric (those that use the same key for both encryption and decryption) and asymmetric ones (using a pair of keys – public key for encryption and private key for decryption). You can also combine both methods using hybrid encryption.

Among symmetric encryption methods, AES (Advanced Encryption Standard) stands out as the most widely used due to its strength and speed. With key lengths of 128, 192, and 256 bits, it is popular in eCommerce and high-risk organizations, proving its credibility (the USA government uses this encryption method). The 256-bit version is considered nearly unbreakable with current technology.

For mobile apps, AES is a perfect solution due to its efficiency and speed – a feature crucial for mobile devices which often have limited processing power and battery life. Also, AES is natively supported by mobile operating systems (iOS, Android) and easily integrated into mobile commerce applications.

User Authentication and Authorization

Cybercriminals often target the moment of logging into the mobile app or performing a crucial action that requires authorization as a gateway to user data. Strong authentication methods can prevent them. Instead of password-based authentication, which is simple to implement and use but susceptible to attacks, consider using 2FA. Relying solely on passwords exposes your app to poor user password practices, whereas implementing a stronger method allows you to take control of security.

Two-factor authentication (2FA) combines two different methods of authentication, typically something the user knows (password) and something the user has (a mobile device for OTP). Although it may negatively affect user experience, it is worth the safety it provides. In financial apps, 2FA is already common, and considering the rise of cybercrime, it may soon also become an essential element of the eCommerce experience.

If these two methods don’t suit you, consider biometric authentication. Whether it’s fingerprint recognition, facial recognition, or iris scanning, it is convenient and fast, and its security level surpasses others. However, it requires compatible hardware, which could also become a point of attack.

Bottom Line

Staying informed is essential for providing mobile app security. The cyberattack landscape is always evolving; new, often more complex tactics emerge, while others fade. The key to keeping secure is to remain adaptable and constantly modify your development and maintenance approaches.