Your Magento Security Guide to Ensure Hackers Stay out of Your Data

The first PC virus, dubbed (c)Brain, was created in 1986 by the Farooq Alvi Brothers in Lahore, Pakistan, reportedly to deter unauthorized copying of the software they had written. 

Computer malware, viruses, worms, trojans… there’s a lot of nasty stuff floating around the net, and there will always be someone trying to take advantage of a vulnerable system or gaining unlawful access with malicious intent.

This article will show you the Magento security best practices to implement to prevent attacks from happening so your data and your customers’ data is safe.

Isn’t Magento already secure enough?

Magento 2 is pretty darn secure. Magento 1 — not so much.

We can confidently say this from our own experience, and you can read Magento’s security overview, which includes the following advantages of Magento 2:

• Enhanced password management

Magento 1 uses a weaker system of password hashing (a one-way process of turning a string of characters into what is known as a hashed password). Magento 2 supports Argon2ID13, a stronger hashing algorithm than the previous gold standard — SHA-256.

• Improved prevention of cross-site scripting (XSS) attacks by making escaped data the default

Magento has implemented new rules to prevent cross-site scripting (XSS) attacks.

XSS attacks are a type of malicious script injection used in phishing attacks, logging keystrokes, and other unauthorized activities. 

• More flexible file system ownership and permissions

Starting in version 2.0.6, Magento allows users to set file systems access permissions. The recommendations are that certain files and directories be write-only in a development environment and read-only in a production environment.

• Improved prevention of clickjacking exploits

Magento safeguards your store from clickjacking attacks by using an X-Frame-Options HTTP request header. For more information, see X-Frame-Options header.

• Auto-generating encryption key

Magento uses an encryption key to protect passwords and sensitive data. Currently, Magento 2 uses the AES-256 algorithm, and you can choose to generate a random key at any time through the admin panel.

And the biggest reason why Magento security trumps Magento 1 is… Magento 1 support is terminating at the end of June 2020.

You’ll miss out on future Magento 2 patches and updates if you don’t migrate

June 2020. This date has been ringing in most Magento merchants’ and agencies’ ears ever since Magento finally announced the big date. If you haven’t migrated yet, start planning now. After June 2020, there won’t be any new security patches for Magento 1 — not to mention, the technology vulnerabilities in PHP and the rest of the Magento 1 stack that will not be addressed. One of the best ways to safeguard your site is to install patches and updates as soon as they are released.

How Magento minimizes the impact of vulnerabilities

In addition to the new architecture and security framework of Magento 2, there are processes in place to minimize the impact of vulnerabilities.

They include:

• Bug Bounty Program — Developers are rewarded bounties of up to $10,000 for bugs found in Magento. This is a great way to get the community involved in Magento security. 
• Magento Security Center — New security updates, patches, best practices, and much more can be found on this resource. Whether you need more information about a patch or need instructions to install patches/updates, this is the place to go. 
• Security Alert Registry — The Magento team responds to vulnerabilities and provides patches and updates to protect stores against threats. Subscribe to the Security Alert Registry to receive emails whenever there is a new security release.
• Code quality standards — The Magento core development team uses the Magento Coding Standard and recommends that developers who create Magento extensions and customizations also use this standard.
• Extension quality program — All extensions submitted to the Magento Marketplace go through a multi-step review process: technical and marketing reviews. If either review is not passed, the extension will not be allowed to be published.

In the next section, we’ll show you the consequences of cyberattacks, the most common causes of attacks, and we’ll share some of our own experiences with cybersecurity.

Real-world data breaches and Magento security vulnerabilities

According to a study by Kaspersky Labs, cyberattacks are incurring more losses for companies of all levels. For enterprises, the average cost of one incident from March 2017 to February 2018 reached $1.23 million. That is 24% higher than losses from 2016-2017 and 38% higher than losses from 2015–2016. For small and medium businesses (SMB), the losses were estimated at $120,000 per incident on average (32,000 more than a year ago).

IBM’s Cost of a Data Breach Report 2019 discovered that lost business was the biggest contributor to data breach costs. The Kaspersky results pale in comparison with what IBM found:

This shows that smaller organizations have higher costs relative to their size than larger companies, which can severely affect how they recover and their ability to grow.

Another interesting insight from the IBM report was that breaches from system glitches and human error still cost companies millions, and were responsible for nearly half (49%) of the data breaches studied in the report. 

These are a few examples of recent attacks targeting Magento sites:

Our experience with cyberattacks

To learn what Elogic developers encounter in their work, we asked around and learned of two wild stories of malicious intent.

The Bitcoin mining fiasco 

One of our most experienced full-stack developers at Elogic, Andriy Biloshytskiy, had an interesting experience a few years ago. Something very strange happened to one of the projects he was working on at the time. 

There were no recent updates on the site, nothing had changed, except the site wasn’t working,” Andriy said. “So, I did a cursory investigation and found something both odd and amusing — there was a piece of JavaScript code with no closing tags, which caused the crash. After a Google search, I found the malicious script was intended to siphon the computing power of people visiting the store — to mine Bitcoin.

– Andriy Biloshytskiy, Full-stack developer

The perpetrator (possibly a store admin) was never caught. The store didn’t have admin logs so there was no way to know for sure who was responsible.

The unexpected virus

When developers work on projects, they often clone the store on their work PC or server to test and write new code. This story happened after one of our developers cloned a store but instead of getting right to work, he saw a pop-up.

The pop-up was a warning from his antivirus software, and the source of the infection was the freshly installed Magento instance. After locating the infected file, a core PHP file, the developer deleted the malicious code and went about his job.  

The moral of the story is: whether the attack is targeted, a human error, or a system glitch/vulnerability, you can help prevent breaches by implementing and following security standards. 

What security standards should be in place to make sure my site is safe?

There’s no such thing as an unhackable site. Even if you hire the best-of-the-best developers, engineers, and security experts, there’s still a possibility of being hacked.

So, our recommendation is to enforce a strict security workflow for onboarding and day-to-day activities. 

Here’s what it looks like:

1. Include security practices in your onboarding process
   Although this may seem self-explanatory, it’s often overlooked by both internal and external teams. Make sure new store employees, outstaffed employees, and everyone in-between goes through security onboarding. We recommend the CISO’s New Hire Onboarding Checklist.
2. Enforce strict access rights
   Part of the onboarding process is figuring out what access rights an employee will need to do their job. Enforcing access rights to information is important and we also recommend doing access right reviews to make sure no rules are being violated behind your back. You can set up User Roles in Magento with this guide.
3. Make sure you comply to industry standards
   This is both technical and business-wise. Your site and all the code used in it should comply with PHP coding standards, testing standards, and be PCI-compliant at all times. We’ll show you an actionable checklist in the next section so you can become PCI-compliant. 
4. Have failover redundant infrastructure
   Yes, we understand you’re not a security expert, but you need to ask whoever is responsible for security if they have a Backup Plan (which should cover what you backup, how often you backup, and when backups should be used). Important note: backups should be automated.
5. Secure third-party components (modules, services, extensions, applications)
   Like the Magento Security Best Practices say, make sure all applications running on your server are secure. Avoid running applications like WordPress on the same server as Magento, because a vulnerability in one of those applications can potentially expose information from Magento. It goes without saying that you should never install extensions from untrusted sources (like torrent sites).
6. Protect your data
   
   a. Infrastructure segregation
   ⇨ This is in line with securing third-party components. Under no circumstances should you have development, staging, and production environments running on the same server instance.
   
   b. Limited access
   ⇨ Another point we touched upon: access rights extend to the developers and other IT personnel. Under no circumstances should every member of the team have full admin rights.
   
   c. Personal data protection
   ⇨ Although it may seem obvious, part of the onboarding process should include not bringing in USB drives and other storage devices to work. Also, remember to not click on suspicious links or open suspicious emails. Never tell anyone your password (especially the Magento Admin password).  

So with the boring stuff out of the way, let’s get down to bulletproofing your Magento store!

Bulletproof Magento Security: 14-Step Guide

Step 1 Security Audit

There are a lot of moving parts in Magento security. No developer, architect, manager, or other roles realize security risks as well as a qualified security expert. That’s why the first step is to have your site combed through by an expert. Preferably, you should get this done at least once a year to stay secure.

Step 2 Automated Security Scan

Great news, you don’t have to go to a third-party every time you want to run a scan. Magento offers its Security Scan free of charge.

Magento Security Scan allows you to monitor all of your websites (if you have more than one) for possible risks and highlights the patches and updates you require. Set a schedule (Magento recommends scanning on a weekly basis) and receive reports and corrective actions for each failed test. To get started, check out this guide.

There are also free scanning tools out there like MageReport, but it’s not as in-depth as Magento’s tool and does not offer automated or scheduled scanning.

Step 3 Magento Admin Security

Magento recommends a multilayered approach to securing your admin account(s).

You can:

• Set the security level for passwords
• Set the number of login attempts
• Configure length of keyboard inactivity before the session expires
• Require case-sensitive usernames and passwords

Admin passwords

Password options for Admins

On the Admin sidebar, go to Stores > Settings > Configuration.

In the left panel under Advanced, choose Admin.

Expand the Security section.

Change default Admin URL

It’s a good idea to change the default admin URL to something else to make it less of a target for hackers. 

Default Base URL: http://yourdomain.com/magento/

Default Admin URL and Path: http://yourdomain.com/magento/admin

There’s a simple way to change the admin URL available in the admin panel, but keep in mind, any mistakes will render your site inaccessible to all admins, and the only way to fix it is by editing server configuration files (not something you want to experience, trust us).

IP Whitelisting

You might have heard of blacklisting — when you block access to a certain site, IP address, or network. 

Whitelisting is the opposite — allowing access to certain information, sites, and in our case, the Magento admin panel, to only trusted IP addresses. 

Step 4 Set user roles

Magento includes options for restricting access for admins. In other words, you can create permissions to limit what a site admin sees and grant them limited access.

You can set up user roles by going to the Admin sidebar. Click System, under Permissions, choose User Roles. In the upper-right corner, click Add New Role. 

After assigning a Role name and entering your password you can set up the Role Scope (see image below). 

Magento Commerce allows you to log any actions performed by admins. You can turn on Action logs by navigating to Stores > Settings > Configuration. In the left panel, expand Advanced and choose Admin. Expand the Admin Actions Logging section and select the checkbox enable admin logging for each action you want to log.

Step 5 Captcha and Google reCaptcha

In Magento, you can set up both Captcha and Google reCaptcha for admins and customers. Both protect you against spam and other types of automated abuse.

Captcha is a human validation test i.e. the blurry, squiggly letters and numbers you’ve probably had to squint to see.

Google reCaptcha is a superior type of human validation i.e. the “I Am Not A Robot” checkbox. 

Invisible reCAPTCHA (Magento recommended) — which verifies a user is human automatically, without any interaction. It sounds like magic, but Google managed to find a way to do it.

Step 6 Two-factor authentication (2FA)

Two-Factor Authentication, or 2FA for short, is a method of confirming a user’s identity by making users complete a second step in the verification process. Magento 2FA is only available for Admin users and is not extended to customer accounts.

This is how you can configure 2FA in Magento:

On the Admin sidebar, go to Stores > Settings > Configuration.

In the left panel, expand Security and choose 2FA.

Step 7 Encryption key

When you first fire up Magento, the system automatically generates an encryption key. This key is used to protect passwords and other sensitive data like credit card info and integration (payment and shipping module) passwords. 

Magento recommends keeping this key safe and hidden at all times. If you experience a data breach, you can create a new encryption key to prevent anyone from accessing data using the old key. 

You can generate a new key in the admin panel. To reiterate, we don’t recommend doing this on your own.

Step 8 Password requirements 

Magento requires a minimum of seven characters (both letters and numbers). We recommend using something a bit more robust — a 10-12 character alphanumeric password. 

Pro-tip — Don’t try to think of a password yourself. We recommend using LastPass to randomly generate a password. 

Change your passwords if you suspect there’s a data breach, regardless of whether or not your account was hacked, and set a reminder to change your password once a year.

You can set the level of security for passwords used by both customers and admins directly in the admin interface

Password options for customers

On the Admin sidebar, go to Stores > Settings > Configuration.

In the panel on the left, expand Customers and choose Customer Configuration.

Expand the Password Options section.

Step 9 PCI Compliance

The major credit card companies created the Payment Card Industry Data Security Standard (PCI DSS) to make sure merchants adopt critical security measures. Merchants who fail to comply with PCI requirements can expect large fines, which can also result in losing their ability to process payments. 

Magento makes it easier for merchants to become PCI compliant — Magento Commerce Cloud is PCI-certified and Magento offers integrated payment gateways like PayPal, Authorize.Net, and others that securely transmit credit card info.

Important Note: DO NOT USE the Saved Credit Cards Module in a Production environment!

Saved Credit Cards is not PCI-compliant and you may be exposing your customers’ credit card info.

Step 10 Install security extensions

Anna Völkl is a Magento Master with many years of experience. The following is a SlideShare presentation Anna presented in 2017. It highlights Magento security best practices and includes a list of security extensions.

Top Magento security extensions according to Anna:

Passwords & Login

• EW_NativePasswords
• MageHackDay_TwoFactorAuth
• BranchLabs_AdminPasswordStrength
• Shopliebe_PasswordStrength
• Ikonoshirt_Pbkdf2

Configuration & Monitoring

• Ikonoshirt_StrictTransportSecurity
• ET_IpSecurity
• FireGento_AdminMonitoring
• Nexcessnet_Alarmbell
• Mhauri_Slack / Moogento_SlackCommerce

Recommended Extensions for M2

• creaminternet/module-secure-passwords
• Git Status Security Report
• MageSpecialist SecuritySuite
  • Anti Virus: https://github.com/magespecialist/m2-MSP_AntiVirus
  • Malicious Users Detector: https://github.com/magespecialist/m2-MSP_NoSpam
  • Intrusion Detection Prevention: https://github.com/magespecialist/m2-MSP_Shield
  • Admin Two Factor Authentication: https://github.com/magespecialist/m2-MSP_TwoFactorAuth
  • reCaptcha: https://github.com/magespecialist/m2-MSP_ReCaptcha
  • Admin IP restriction: https://github.com/magespecialist/m2-MSP_AdminRestriction

Step 11 Security automation solutions

Security automation is the process of automatically handling security-related tasks like antivirus scanning, intrusion detection, creating backups, renewing SSL certificates, and much more.

IBM made a groundbreaking discovery: organizations without automated security solutions experienced breach costs that were 95% higher than organizations with fully-deployed automation.

Step 12 Cyber liability insurance

Just like any other type of insurance (car, home, etc.) cyber insurance protects businesses from damages caused by cyberattacks.

According to Wikipedia, cyber insurance is “Coverage provided by cyber-insurance policies may include first-party coverage against losses such as data destruction, extortion, theft, hacking, and denial of service attacks; liability coverage indemnifying companies for losses to others caused by errors and omissions, failure to safeguard data or defamation, and other benefits including regular security-audit, post-incident public relations and investigative expenses, and criminal reward funds.”

Step 13 Create an Incident Response Team & Plan

If you don’t have an incident response plan (or you don’t know what this is), let’s create one.

To make it easier, we took Talesh Seeparsan’s Magento-centric Incident Response Plan Template and made a Google spreadsheet that you can copy for your own use. 

This is the template.

Prerequisites for using the template:

• Create an Incident Response Team (IRT) to deal with security incidents for each aspect of the e-commerce solution defined in this table.

• Routinely monitor and analyze network traffic and system performance.

• Routinely check all logs and logging mechanisms, including operating system event logs, application-specific logs, and intrusion detection system logs.

• Verify your backup and restore procedures. You should be aware of where backups are maintained, who can access them, and your procedures for data restoration and system recovery. Make sure that you regularly verify backups and media by selectively restoring data.

IBM found that companies with an IRT and extensive testing of their response plans saved over $1.2 million. More specifically, the study showed that the combined effect of the IRT and testing the incident response plan, through drills and simulations, helped teams respond faster and produce greater cost savings than any single security process.

Step 14 Keep Magento patched and up-to-date

There are no excuses for not having a patched and fully-updated Magento store.

It really makes us sad when we see reports like Sucuri’s Website Hack Trend Report 2018, which found that 83.1% of Magento websites were mostly out of date and vulnerable at the point of infection, up 2.8% from 2017.

Scan your site, identify any patches you need to install, and please, do not let hackers get easy access through a vulnerability. Sign up for the Magento Security Alert Registry and make a point to visit the Magento Security Center from time to time for the latest news and information.

What to do if your website has been hacked

Don’t panic. If there was a data breach or information exposure there’s no way of getting that information back. Your priority should be identifying what was exposed, gathering evidence, and making sure data isn’t leaking.

Follow your Incident Response Plan:

• Make an initial assessment
• Communicate the incident
• Contain the damage and minimize the risks
• Identify the severity of the compromise
• Preserve evidence
• Communicate any external notifications
• Compile and organize incident evidence

Is Magento Commerce more secure than Magento Open Source?

There are five major advantages to using Magento Commerce and Commerce Cloud. You can read about the additional benefits of the cloud version here.

PCI compliance

Magento Commerce Cloud is PCI certified as a Level 1 Solution Provider, so merchants can use Magento’s PCI Attestation of Compliance to aid their own PCI certification process. 

Shared security responsibilities

Magento Commerce Cloud has a shared responsibility security model where you, Magento, and Amazon Web Services (best-of-breed cloud services) share the responsibilities for operational security. You’re responsible for testing custom code and any custom applications. Magento ensures the platform itself is secure, and Amazon takes care of physical security for servers and compliance.

Action logs

Magento Commerce gives you the ability to keep a record of every change (action) made by an admin who works in your store. The logged information includes the name of the user, the action, and whether the action was successful, and it also logs the IP address and date. 

Web Application Firewall (WAF)

Just like a firewall on a PC, a WAF prevents malicious traffic from entering a network by using a set of security rules. Any traffic that triggers the rules is blocked before it unleashes itself on your site or network. Magento Commerce Cloud uses Fastly CDN for WAF services.

Content Delivery Network (CDN) & DDoS Protection

Magento Commerce Cloud also uses Fastly CDN for additional security features like DDoS protection, which includes Layer 3, 4, and 7 DDoS mitigation

Takeaways — Magento security tips and best practices

Site security and more broadly, cybersecurity, should be one of your main priorities. You’re not just running a blog or personal page, you’re responsible for protecting confidential information, including names, addresses, phone numbers, and credit card info. 

Remember:

• Even a fully-patched and updated site can be hacked. For example, a weak admin password can be brute-forced and hackers can stroll right in and collect everything they want.
• You cannot account for new vulnerabilities or zero-day exploits (a cyber attack that occurs on the same day a weakness is discovered). However, a strong incident response plan can help you stay one step ahead.  
• “An ounce of prevention is worth a pound of cure.” Ben Franklin was right. If you’ve configured your store with security in mind, adhered to the cybersecurity workflow we’ve outlined, and bulletproofed your store, you can save yourself tons of time and heartache.
• Do not compromise on security, or your lack of security will compromise you.