Cybersecurity for e-commerce platforms: International collaboration in strategy

The e-commerce sector in Bangladesh is on a remarkable growth trajectory, with the Center for Policy Dialogue estimating its value to reach $10.5 billion by 2026. This expansion is fuelled by a surge in internet penetration and a shift in consumer preferences toward the convenience of online shopping. The Covid-19 pandemic played a significant role in this shift, as lockdowns dramatically increased the demand for e-commerce services and encouraged traditional brick-and-mortar businesses to explore online distribution channels. This shift not only highlights the sector's potential but also underscores the critical role of international collaborations in shaping its future.

The success of platforms like Alibaba Group's Daraz is a testament to the power of international collaboration in the e-commerce space. Partnerships with global giants have enabled local businesses to tap into worldwide markets, enhancing logistics and payment systems, and thereby enriching the customer experience. Such collaborations have been instrumental in the rapid development of Bangladesh's e-commerce sector, offering a glimpse into the potential for further growth through international cooperation.

While substantial progress has been made in Bangladesh's e-commerce sectors, international collaborations will continue to be vital in addressing the emerging challenges in these domains. Major collaborations like these not only strengthen Bangladesh's digital infrastructure but also contribute to the nation's economic growth and build the foundations for the next frontier in digital transformation. The allure of bolstering the e-commerce sector, and thereby stimulating economic growth, is undeniable. Yet, it's imperative to carefully consider the associated implications and potential trade-offs. Cybersecurity emerges as a paramount concern within the e-commerce landscape, where online scams and fraudulent activities increasingly affect both consumers and organisations. The erosion of trust in online shopping, exacerbated by the challenges faced through the existence of platforms like Evaly and E-orange, underscores the urgency of advancing cybersecurity measures. Without a dedicated focus on enhancing policy on data privacy and cybersecurity, the expanded operations of e-commerce platforms could inadvertently escalate the risks faced by a growing user base.

The resolution to harmonise the e-commerce boost with developing cybersecurity infrastructure might also be achieved through international cooperation. Collaborating with overseas firms and leveraging insights from their cybersecurity policies, guidelines strategies, and regulatory frameworks could pave the way for significant improvements. Such international partnerships often require aligning national or local company strategies with global cybersecurity standards, fostering a safer e-commerce environment.

In the context of addressing cybersecurity challenges within Bangladesh's e-commerce sector, the Digital Commerce Operation Guideline 2021 emerges as a pivotal development, aimed at bolstering consumer trust in online transactions. This guideline clarifies essential terms like "Marketplace" and "Digital Wallet," and mandates transparency in product information, pricing, and return policies. It prohibits multi-level marketing and unauthorised sales, ensuring vendors possess valid licenses and identification numbers, thereby enhancing operational transparency.

Furthering these initiatives, the guideline stipulates swift financial settlements and product delivery timelines, incorporating insurance and a complaint resolution mechanism to prioritise customer satisfaction and trust. The introduction of a rating system underscores a commitment to transparency and accountability, pivotal for maintaining delivery promises.

This streamlined approach not only fortifies the digital commerce landscape in Bangladesh but also underscores the necessity for businesses to adapt to regulatory standards, highlighting the role of international cooperation in achieving a secure, transparent, and competitive e-commerce environment. The call for integrating global platforms into this framework suggests a business imperative to navigate, comply with, and potentially influence regulatory evolution, reinforcing the essential dialogue between local practices and global standards for the mutual benefit of the industry and its consumers.

Building on the foundation laid by the Digital Commerce Operation Guideline 2021, enhancing international collaboration for Bangladesh's e-commerce sector involves aligning with global standards, notably the European Union's Digital Services Act (DSA). The DSA sets a high bar for online safety, demanding proactive measures against illegal content and ensuring algorithmic transparency among platforms serving over 45 million monthly EU users. This alignment not only elevates Bangladesh's e-commerce to global best practices but also emphasises the importance of international dialogue and cooperation for a secure, competitive digital marketplace.

Adopting DSA-like standards would require Bangladesh to tailor these global norms to fit local consumer needs while maintaining the essence of customer protection. This strategic alignment involves establishing local enforcement bodies and continuous policy refinement, ensuring the e-commerce ecosystem is both globally competitive and locally robust.

Bangladesh has proactively aligned its cybersecurity strategy with the Global Cybersecurity Agenda through initiatives like the Cyber Security Act (2023) and the 'Bangladesh Cybersecurity Strategy for 2021-2025'. These measures illustrate the nation's commitment to bolstering cyber resilience, addressing governance, and incident management, and fostering a competitive cybersecurity industry. Specialised units like the Cyber Police Centre and targeted support mechanisms underscore a comprehensive approach to cyber defence, with regulatory bodies like the BTRC and bdCERT playing critical roles in enhancing national cybersecurity readiness.

The complexity of cyber threats, however, accentuates the indispensable role of international collaboration. Bangladesh's cybersecurity endeavours find a complementary partner in India, with significant emphasis placed on joint efforts to secure both nations' digital spaces. This partnership, as highlighted by State Minister for ICT Zunaid Ahmed Palak, mirrors the collaborative spirit seen in their unified stance against other security challenges, showcasing a strategic alignment towards a secure cyberspace.

The Cyber-Maitree 2023 programme, a hallmark of the Bangladesh-India cybersecurity collaboration, facilitated under the 'Enhancing Digital Government and Economy (EDGE) Project', exemplifies the practical benefits of such international cooperation. By bringing together experts from both countries, the programme aims to bolster the defence of critical information infrastructures, sharing knowledge and best practices to enhance cyber defence mechanisms and foster a secure digital ecosystem.

This bilateral engagement not only strengthens cybersecurity capabilities but also highlights the broader significance of international partnerships in addressing global cyber challenges. Through shared expertise and resources, Bangladesh and India demonstrate the potential for collaborative efforts to advance cybersecurity, setting a model for regional and global cooperation in building a safer digital future.

These initiatives and collaborative efforts highlight Bangladesh's dedication to establishing a formidable cybersecurity framework, utilising both domestic policies and international alliances to protect its digital domain. By synchronising its strategies with international norms and engaging in cooperative endeavours with neighbouring nations, Bangladesh is making significant strides towards a fortified and resilient digital environment. This is essential for the security of its citizens and critical infrastructure amidst the burgeoning challenges of a globally interconnected landscape.

However, despite the progress achieved, there remains a considerable journey ahead in fully securing Bangladesh's cyberspace. The government's commitment to developing a unified approach with the global community is a promising indication of Bangladesh's trajectory towards accomplishing our shared cybersecurity objectives. This concerted strategy paves the way for a safer online environment, ensuring a secure digital experience for all users. Through these persistent efforts, Bangladesh is not only contributing to its own cybersecurity but also reinforcing the collective security of the digital world.

This article is being published as part of an effort to bring further awareness regarding cybersecurity and policy gaps relating to cybersecurity in Bangladesh to the general public, stakeholders, and policymakers and is supported by DAI Global LLC and USAID under the Digital Connectivity and Cybersecurity Partnership PCCP) Programme.

Syed Shadman Wahid and Zihan Hossain are Senior Associates at Inspira Advisory & Consulting Limited.