The E-commerce Security Checklist

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21 Critical Security Questions every online store must answer

GIFT: Get the pdf version of this checklist here

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1. Payment & Financial Security

Question 1.1‍

Do you use PCI DSS compliant payment processing?

✅ Critical Action:
Partner with certified payment processors (Stripe, Square, PayPal). Never store credit card data on your servers. Implement tokenization for recurring payments.

Question 1.2

Are all payment pages secured with SSL certificates?

✅ Critical Action:
Install SSL certificates on entire site, not just checkout. Display security badges prominently. Use HTTPS redirects for all HTTP traffic.

Question 1.3

Do you have fraud detection systems in place?

✅ Critical Action:
Implement real-time fraud scoring, velocity checks, and geolocation verification. Set up automated alerts for suspicious transactions.

Question 1.4

How do you handle refunds and chargebacks securely?

✅ Critical Action:
Establish clear refund policies, maintain transaction logs, and use chargeback prevention tools. Document all customer communications.

Question 1.5

Are your financial reports and customer payment data encrypted?

✅ Critical Action:
Use AES-256 encryption for data at rest. Implement end-to-end encryption for data in transit. Regularly audit encryption protocols.

2. Customer Data Protection

Question 2.6

How do you collect and store customer personal information?

✅ Critical Action:
Collect only necessary data. Use secure databases with encryption. Implement data retention policies and automatic deletion schedules.

Question 2.7

Do you have explicit consent for data collection and marketing?

✅ Critical Action:
Create clear opt-in checkboxes, maintain consent records, and provide easy opt-out mechanisms. Document all consent preferences.

Question 2.8

Can customers access, modify, or delete their personal data?

✅ Critical Action:
Build customer portals for data management. Implement "right to be forgotten" procedures. Respond to data requests within legal timeframes.

Question 2.9

How do you handle data breaches?

✅ Critical Action:
Create incident response plan, establish breach notification procedures, and maintain forensic capabilities. Practice breach scenarios regularly.

Question 2.10

Do you share customer data with third parties?

✅ Critical Action:
Audit all data sharing agreements. Ensure third-party compliance. Maintain data processing records and vendor security assessments.

3. Website & Infrastructure Security

Question 3.11

Is your website protected against common attacks (SQL injection, XSS, CSRF)?

✅ Critical Action:
Implement Web Application Firewall (WAF), conduct regular penetration testing, and use secure coding practices. Update security patches promptly.

Question 3.12

Do you have secure user authentication and session management?

✅ Critical Action:
Enforce strong password policies, implement multi-factor authentication, and use secure session tokens with proper expiration.

Question 3.13

Are your servers and hosting environment secure?

✅ Critical Action:
Use reputable hosting providers with security certifications. Implement server hardening, regular updates, and access controls.

Question 3.14

Do you regularly backup your data and test recovery procedures?

✅ Critical Action:
Automate daily backups, store copies offsite, and test restoration procedures monthly. Document recovery time objectives.

Question 3.15

How do you monitor for security threats and vulnerabilities?

✅ Critical Action:
Deploy security monitoring tools, set up automated alerts, and conduct regular vulnerability scans. Maintain security logs for analysis.

4. Compliance & Legal Requirements

Question 4.16

Are you compliant with GDPR, CCPA, and other privacy regulations?

✅ Critical Action:
Create comprehensive privacy policies, implement data protection procedures, and conduct privacy impact assessments for new features.

Question 4.17

Do you collect and remit sales tax properly in all jurisdictions?

✅ Critical Action:
Use automated tax calculation software, register in states with nexus, and maintain detailed transaction records for audits.

Question 4.18

Are your terms of service and privacy policies current and legally compliant?

✅ Critical Action:
Review policies annually with legal counsel, update for new regulations, and ensure clear, accessible language for customers.

Question 4.19

Do you have proper business licenses and permits for all markets?

✅ Critical Action:
Research requirements for each jurisdiction, maintain current registrations, and monitor for new compliance obligations.

5. Operational Security

Question 5.20

How do you secure employee access to sensitive systems and data?

✅ Critical Action:
Implement role-based access controls, conduct background checks, and provide regular security training. Use principle of least privilege.

Question 5.21

Do you have incident response and business continuity plans?

✅ Critical Action:
Create detailed response procedures, establish communication protocols, and test plans quarterly. Maintain emergency contact lists.

🚨 Security Risk Assessment

Score Your Security:

• 18-21 ✅ answers: Strong security posture
• 12-17 ⚠️ answers: Moderate risk - address gaps immediately
• 6-11 ❌ answers: High risk - requires urgent attention
• 0-5 ❌ answers: Critical risk - seek professional help immediately

⚡ Quick Action Priority Matrix

🔴 Critical (Fix Immediately):

• PCI DSS compliance
• SSL certificate implementation
• Data encryption protocols
• Basic fraud detection

🟡 High Priority (Fix This Month):

• Privacy policy updates
• Employee access controls
• Backup and recovery testing
• Vulnerability scanning

🟢 Important (Fix This Quarter):

• Advanced monitoring systems
• Penetration testing
• Compliance audits
• Security training programs

‍Need help navigating these requirements? A cybersecurity audit can identify your specific compliance gaps before they become expensive problems. Here’s a link to a short presentation about the Netmidas Ecommerce Cybersecurity Audit.