The consumers opting for online shopping this year may not be highly concerned about fraud since the e-tailer usually absorbs the cost and inconvenience. Essentially, by protecting your customers, you are protecting yourself so make sure to have enough safeguards in place.

Have your e-store's privacy policy prominently displayed on your e-commerce site. If you have established membership in any of the online privacy monitoring organizations, (such as TRUSTe or Privacybot) make sure your company information is up-to-date and the logo is exhibited where customers are sure to see it.

It's not unusual for e-tail stores to hire holiday help so be sure that everyone is aware of the privacy policy and require strict adherence. Delegate a privacy monitor who will ensure that policies are in compliance. Design limitations for how much information is revealed to individual employees. For instance, employees who pick and fill orders should only need the customer's name and address, not the credit card information.

Only ask customers to supply information that is truly necessary for order completion. Unrelated data, such as household income or social security numbers, can be used by cyber-thieves to perpetrate identity theft. Have systems in place that automatically delete or encrypt certain information once it is no longer needed and make sure that nothing is stored that can be accessed by unauthorized individuals.

If you suspect that charges are fraudulent, investigate immediately. A consumer would not consider it an imposition if you inquired about suspicious card activity or notified the credit card companies.

Taking extra precautions with customer information can ensure that this year's e-commerce legacy is not about massive breaches of online shopping security. Added safety measures will benefit not only the consumer and the e-tailer, but the e-marketplace too.

Have a look at these resources:

Keeping Your Business Private
ECommerce Guide's Security Library