Security and Privacy in E-Commerce

Security and Privacy in E-Commerce

IS 6676-XTIA 12/T1

October 4, 2012

Abstract

Electronic Commerce began with an electronic funds transfer (EFT) through a computer network back in 1970 involving only major corporations and financial institutions and has evolved into a billion dollar economy. The main drivers of e-commerce new revenue through new markets, low operating costs, and increased profitability. According author da Costa, in 2001 the number of web buyers reached 68.4 million and over $200 billion in revenue was generated (Costa, 2001). For some consumers and businesses, it is the only way to conduct business. There have been developments in various industries to make buying, selling, and exchanges more convenient with a heightened interactive experience. Some of these developments include online and mobile banking, online shopping, the ability to provide government services online, and the ability to make payments and purchases using a mobile device. These are all useful applications that many of us use every day, but the level of convenience does have a cost. Security and privacy issues have been a long standing topic in E-commerce. The controversy has been between adding more ease of use and better experience to the customer or add more security to make the customer feel more secure in using the system. Identity theft, denial-of-service attacks, Trojan Horses, and viruses -- just to name a few -- are all threats that people and businesses face each time they do business, which can result financial loss and loss of secret or vital information. However, correctly implemented security strategies can deter cybercriminals, prevent future intrusions, and detect intrusions as they happen. The problems with this implementation include cost, time, and lack of knowledge about the enemy due to hackers and crackers continued evolution. As new methods of attacked are developed and hackers get smarter, it becomes more difficult to defend ourselves...