E-commerce data security 2010: Learning from 2009's debacles

Tough economic times brought a surge in online shopping. As more people turn to the Web, merchant readiness for handling confidential data is more critical than ever for a successful online presence. Etailers must have their data protection systems in place before flipping the switch, rather than having a major disaster to clean up after a breach occurs.

2009 was the first year since 2005 that the number of data breach incidents recorded actually dropped. If that makes you feel a little more secure - there is a counter side. The same site reports on personal records that have been exposed: 220 million records in 2009 as compared with 35 million in 2008.

There are two important trends to note here. First, technology advancements (and simplifications) have made breaches increasingly difficult. Second, there is the people side of the equation. In some cases, the small entry errors involved in large-scale breaches are more difficult to manage than the technology issues.

With a poor economic state and online shopping becoming a necessary tool for tough times, merchant readiness for handling confidential data - both on the technology and people front - is critical for a successful online presence.

As the new year unfolds, it is important to review the lessons learned from 2009 and reflect on how we can use past trends to correct and innovate data security in 2010.

See the lessons here.