How Much Will Cybercrime Cost Your E-Commerce Business This Season?

The 2024 holiday season has seen explosive growth in e-commerce, with transaction volumes more than doubling from 5.1 billion in 2023 to 10.4 billion this year. While this highlights the strength of online shopping, it also points to a parallel increase in malicious activity. Reports indicate that 34.62% of transactions in 2024 were flagged as suspicious—up from 14.53% in 2023—showcasing the growing danger to e-commerce platforms as cybercriminals exploit vulnerabilities during peak traffic periods.

The Financial Impact: Millions in Potential Losses

The financial toll of cybercrime on e-commerce businesses is staggering. From November 22 to December 2, 2024, the industry saw an estimated $681.12 million in losses due to fraud. As the holiday rush continues, businesses are on track to lose an average of $2.58 million per hour, with potential total losses reaching $1.79 billion by year’s end. These figures underline the urgent need for businesses to reinforce their defenses during this crucial time of year.

Protecting the Bottom Line: Real-World Impact

Real-world examples show just how impactful bot mitigation can be. For instance, a major e-commerce brand used Cequence to thwart an SMS pumping attack, which cost them up to $3,000 every four hours. By blocking fraudulent activity targeting an account creation API endpoint, Cequence saved the company from significant losses.

In another case, Cequence helped a retailer navigate a 125% surge in traffic on Black Friday, successfully mitigating 11.5 million malicious requests. During the holiday week, Cequence handled 3.7 billion requests, blocking 317 million malicious attempts.

The Rise of Advanced Attacks: Credential Stuffing and Token Farming

Cybercriminals are constantly evolving, with attacks like distributed credential stuffing and token farming becoming more common. According to Cequence data, these attacks, which use stolen credentials to infiltrate systems, have surged by 700% from 2023 to 2024. They are difficult to detect, often masked by automated tools and hidden in legitimate traffic. As e-commerce businesses expand, they become increasingly attractive targets for these advanced threats, underscoring the need for adaptable, robust security systems.

Key Takeaways for E-Commerce Businesses

1. The Christmas Rush Brings More Than Just Shoppers: The holiday shopping season offers cybercriminals prime opportunities for fraud and disruption.
2. Malicious Traffic Outpaces Legitimate Growth: As online transactions increase, so does malicious traffic. Businesses need a proactive security strategy to keep up.
3. Bot Protection Is Critical Beyond Cyber Monday: With the rise of advanced threats like distributed credential stuffing and token farming, businesses must maintain robust security throughout the holiday season.
4. The Financial Risk Is Real: Cybercriminals are poised to cost businesses billions this season. Proactive security measures are essential.

5 Tips to Defend Against Malicious Traffic

1. Adopt Intelligent Bot Management: Use solutions with advanced machine learning to dynamically identify and block sophisticated threats in real time.
2. Enhance Fraud Detection Systems: Strengthen algorithms to better defend against account takeovers and credential stuffing.
3. Implement Multi-Layered Security: Combine API protection, web application firewalls, and bot mitigation tools to address complex, multi-faceted attacks.
4. Invest in Real-Time API Protection: Protect sensitive data by deploying real-time API security solutions.
5. Monitor Traffic 24/7: Track traffic and transactions continuously to detect suspicious patterns and prevent attacks before they escalate.

With malicious traffic escalating this holiday season, e-commerce businesses face an unprecedented challenge. Cybercriminals are exploiting high-traffic moments like Black Friday and Cyber Monday to launch attacks. With potential losses of $1.79 billion predicted for December alone, the stakes have never been higher. To protect their bottom line, businesses must invest in advanced bot and API protection solutions that can counter these evolving threats.

Want to dive deeper into the data? Check out our exclusive infographic to uncover the surge in malicious bot traffic, the rising risks to e-commerce, and actionable insights on how to protect your business during the holiday season.