Cybersecurity and data privacy are concerns for e-commerce platforms but also an opportunity to rebuild trust, KPMG
The COVID-19 pandemic has reduced in-person interactions between businesses and consumers. The pandemic has allowed digital channels to fill the gap for customers as these channels have seen a rapid rise, with consumers’ take-up of digital channels increasing +18% (from 26% pre-COVID-19 to 44% now) 1, according to a KPMG survey.
However, the rapid growth of users and the strain on companies to quickly develop and expand the capabilities of their online platform also come with cybersecurity and data privacy risks, which could damage trust and reputation of the services.
Following a recent data breach in Thailand, the Digital Economy and Society (DES) Ministry on 24 November 2020 pushed for e-commerce platforms to be registered with the Electronic Transactions Development Agency (ETDA) to increase protection and strengthen cybersecurity.
Consumers’ heightened awareness of security and data privacy concerns is a call for e-commerce platforms to better manage cyber risks and take serious steps to protect users’ information.
According to the survey, customers’ trust in brands have eroded in recent years. Their success in rebuilding trust and propelling future growth depends on communicating and demonstrating commitments to their customer’s data security. Especially with Thailand’s Personal Data Protection Act (PDPA) coming into effect on 1 June 20212, it is crucial that e-commerce operators start the preparation process now to be compliant by that time.
“Focusing on technology alone to address these issues is not enough. Effectively managing cyber risk means putting in place the right governance and the right supporting processes, along with the right enabling technology. Cyber security and data privacy must be approached in a holistic way, including prevention, detection and having a response plan.” Siraporn Chulasatpakdy, Partner, Advisory – Head of Management Consulting and Cyber Security, KPMG in said.
“E-commerce platforms must continue to demonstrate their commitment to data protection and respond to the consumer concerns, particularly trust – by taking measures to strengthen cybersecurity to ensure long-term growth. This must be a continuous effort with constant evaluation and evolving measures to ensure maximum online safety for its customers.” concluded Charoen Phosamritlert, Chief Executive Officer, KPMG.
