Exercise 16.2: Authentication and Encryption systems

Question 2.
Global e-commerce presents challenges exempt from domestic e-commerce. What security concerns add to the complexity of international e-business?

Global e-commerce presents different challenges to domestic e-commerce. The main issue is international jurisdiction and how laws should be enforced when something goes wrong in an e-commerce transaction between parties in different counties. Should the law be enforced in the country of the purchaser or the seller or the service provider and how can you enforce a court ruling when each party is in a different country?

According to OUT-LAW News (2003),the fear is that until there is an international agreement to clarify these matters then businesses will be reluctant to take full advantage of the opportunities put forward by the internet.

According to the article by Perez (2005) the main security concerns affecting e-commerce are the increase in phishing attacks, spyware intrusions, virus infections and the compromising of personal data.

Phishing attacks
This is where scammers create e-mail messages that look like they come from a legitimate organisation, such as an online store or a bank. The emails then lure customers to enter sensitive information such as credit card numbers, bank account numbers and passwords into a legitimate-looking Web site set up by the scammers. Even if customers don't enter data into these rogue Web sites, just going to the address can trigger an automatic and transparent download of malicious software to their PCs.

Spyware
Spyware is malicious software installed on a user's machine without knowledge or authorisation. This type of software includes key loggers, which secretly log users' keystrokes to steal passwords and other sensitive information.

Compromising of personal information
Unauthorised access to personal and financial information can be used to steal peoples identities and inflict serious damage to their finances and credit rating.

Therefore, e-businesses that sell goods and services to consumers via the Internet must address the above security concerns and put safeguards in place to protect their customers.

References
International jurisdiction convention OK, says ICC. August, 29, 2003. OUT-LAW News. Retrieved from http://www.out-law.com/page-3857.
Perez, J.C. June 24, 2005. Computerworld Security. Gartner: Security concerns to stunt e-commerce growth. Retrieved from http://www.computerworld.com/s/article/102769/Gartner_Security_concerns_to_stunt_e_commerce_growth?taxonomyId=17&pageNumber=1