5 Most Common Risks in Online Business and Ways to Avoid Them

With countless online business tools to build a website and other business-related platforms, running an online business has never been a bed of roses due to the inherent risks involved.

The more the technology advances, the more critical it is to keep up with the significant security risks. To prevent future online entrepreneurs from facing these risks, here are the five most common risks in online business and ways to avoid them.

Data privacy and security

It’s good to understand that you are liable for all personal information shared through the business when operating an online business. This means that you have to have a robust password management system to easily manage your passwords to facilitate easy retrieval or changes in case you happen to lose the passwords. In some cases, working with devices like Mac and iPhone requires you to be keen to make sure you don’t face the case when your account has been disabled in the App Store and iTunes due to multiple wrong logins attempts.

Moreover, online hackers are always looking forward to exploiting business persons with obsolete software and safety measures as they can easily crack your passwords and steal your confidential information. To prevent these risks from happening to your online business, it’s good to adopt a two-step verification method that uses facial recognition technology or fingerprints.

Copyright violation

Nowadays, most online businesses suffer from copyright infringement due to a lack of better management that exposes their details. This explains why so many products are reproduced often, and the manufacturers claiming it’s an improvement to an existing product. With a strong internet connection, you can easily google without further research on how to develop different products and download many manuals for later use. In some countries, this is highly prohibited. In contrast, in developing countries, laws in this sector have not been fully enhanced.

Another reason why copyright infringement is on the rise is the immense amount of content that is readily available online and can easily be accessed through some links. Therefore, when starting your online business, it’s advisable to warn your employees against such acts and train them on better methods of coming up with their innovations. In addition, governments from various countries should enforce and ensure that their business follows copyright laws strictly.


It’s very effortless for an online customer to commit deception as there is much anonymity behind the computer screens. There are so many online businesses whose accounts have been shut down, but they are operating as usual and coning people. On the other hand, it’s tough to confirm whether the credit card number and bank information belong to the person you transact with us.

Fraud cases are commonly observed in e-commerce due to the frequent exchange of commodity products rather than personal services. To deal with this type of issue, you need to keep your account transactions and bank account information closely. This will help improve security, especially when the online platforms and the transaction software are up to date.

Unfavourable trade laws

Different countries have various trade laws that, if not well synchronized for international purposes, many online businesses may fail. It’s through the trade laws that market pricing, price discrimination and monopolization are addressed. This means that with unfair online trade laws, a lot of monopolization is likely to occur. These rules and regulations are enforced to promote an excellent online trading environment and prevent the exploitation of business persons and consumers.

To protect yourself as an online business person, ensure that you advise your advertisers to avoid using misleading information intended to attract a huge crowd. You should also provide proof for the claims you are making in your published online content or a reference that will act as a credible source.

Trademark infringement

With all your branding information being available online, an online user may decide to use your trademarked logo for their business. It’s good to understand that; not every customer will be keen on the details provided by your business as most of them might think it’s your new extension and shift to it. This will lead to a severe loss of your customers and contribute to low-profit levels.

When filing for an official business name, make sure no other business has a similar name as yours. Make use of an online business name directory to ensure that the choice of your name does not exist to avoid trademark infringement risks. Avoiding trademark infringement also helps to reduce confusion as there is no other business with the same name and logo as yours.


When operating an online business, there are numerous legal and personal risks that you may face. How you tackle them determines whether your business thrives in the competitive online environment. These risks are common to almost every industry, and you should, therefore, pay keen attention to them.

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