E-Commerce: The Benefits, Security Risks, and Countermeasures

E-Commerce: The Benefits, Security Risks, and Countermeasures

Joon S. Park (Syracuse University, USA)
Copyright: © 2009 |Pages: 11
DOI: 10.4018/978-1-59904-855-0.ch002
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Abstract

E-commerce has grown immensely with the increase in activity on the Internet, and this increase in activity, while immeasurable, has also presented several different security risks. As with any other means of business, it cannot be assumed that all players will abide by a code of moral conduct. This essentially means that all users of e-commerce, whether they are on the consumer or supplier side, must be wary of the problems that this technology can present. Both the legal and illegal services present a unique set of security risks that can present immense problems to anyone who is affected by them. In order to combat these problems, the user must first understand them. Only then will they be able to take proper action, so as to protect themselves from the risks presented by online music files. To build this foundation of understanding, this chapter is going to first focus on not only the benefits of e-commerce, but also the security threats and risks that it presents, along with the main problems organizations and individuals face as a result. Lastly, the discussion will go on to argue some of the proposals that have been established that have the goal of making e-commerce more secure.
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Introduction: Why E-Commerce?

E-commerce is a very useful and convenient technology, but it is something that must not be taken lightly, and until its security risks are worked out and lessened, it will not be able to reach its full potential (Ghosh, 1998). The technology is a necessary asset for any business that wants to be successful in today’s high tech world. Customers expect that they will be able to purchase items online and that their personal and financial information will be secure and not given to other companies without their consent.

For customers, e-commerce can be used in new commercial ways to do such things as file and pay taxes and attend to other personal matters (Scheer, 2005). Also, e-commerce makes it convenient for customers, because it enables them to directly make payments for purchases made online. A bill can be sent electronically to a customer, who then can authorize the bank by electronic check to transfer funds from the customer’s account to the vendor’s account. The customer’s monthly electronic bank statement then lists the payments.

Technically, e-commerce is a new channel for doing common, everyday actions via the Internet. The Internet’s main feature is that it improves productivity, streamlines some operations, and achieves cost savings. Companies that want to affect measures for cost control should use e-commerce as a gateway to more customers, as well as to save on overhead. E-commerce reduces operating costs by improving coordination and communication in manufacturing, sales, and distribution. Research has shown that further cost reductions enhance competitive position, and may also ensure better operating efficiency, but can also lead to downsizing (Mazon, 2001). Using the Internet can also reduce or lower costs by eliminating paper use for certain information—for instance, issuing and filling purchase orders in electronic form, rather than the traditional paper form. Depending on the type of items the company is selling, the company can actually deliver over the Internet, eliminating the need for packaging and printed documentation (Ghosh, 1998). Product upgrades may be automatically transmitted to the customer by computer, instead of subject to the will and memory of an employee to upgrade a product. Furthermore, online electronic catalogs save time and eliminate the costs of printing and mailing. All of these examples make it apparent that e-commerce can be a very cost-effective way of doing business for both the consumer and supplier.

Another positive reason to move toward e-commerce as a business method is the competitive advantage an e-commerce business may have over physical businesses. A “digitalized” company can gain this advantage by adding special features, more options, adapting to variability in customer demand, providing more and better products and services, shortening the product life cycle, and eliminating geographic boundaries (Kuzic, 2005). To have a successful site, the company should offer automated suggestions for accessories, add-ons, or other compatible products throughout the product selection process. The company must also offer substitutions for items that are out of stock. These features are necessary, since digitalized companies do not have the advantage of a live employee to suggest these factors to customers. Furthermore, companies should offer customers the ability to pick up the item in the store that is located nearest to them. This allows for the cost of shipping and packaging to be low, compared to if the company would have to send the package to the customer. This can also serve as a mechanism to ensure that the proper product is going home with the customer.

Key Terms in this Chapter

E-Cash: An e-commerce protocol that attempts to preserve the anonymity and untraceability associated with cash transactions.

Secure Socket Layer (SSL): A security protocol that provides a type of secure channel between Web clients and servers.

Spam: Unsolicited bulk e-mails that receivers are not willing to get. Today, it gradually becomes a serious problem, which results in the significant cost on e-mail receivers and ISPs (Internet Service Providers).

Spyware: In general, any software that gathers information about users or organizations without their knowledge.

Confidentiality: One of the primary security properties that protects information from unauthorized disclosure.

Integrity: One of the primary security properties that protects information from unauthorized modification.

E-Commerce: All forms of business activities for buying and selling goods or services on the Internet.

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Table of Contents
Preface
Jatinder N. D. Gupta, Sushil Sharma
Acknowledgment
Jatinder N. D. Gupta, Sushil Sharma
Chapter 1
Xin Luo, Qinyu Liao
In computer virology, advanced encryption algorithms, on the bright side, can be utilized to effectively protect valuable information assets of... Sample PDF
Ransomware: A New Cyber Hijacking Threat to Enterprises
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Chapter 2
Joon S. Park
E-commerce has grown immensely with the increase in activity on the Internet, and this increase in activity, while immeasurable, has also presented... Sample PDF
E-Commerce: The Benefits, Security Risks, and Countermeasures
$37.50
Chapter 3
Pamela Ajoku
Even though weapons and money are considered important factors for running a modern world, at the end of the day, it is all about controlling and... Sample PDF
Information Warfare: Survival of the Fittest
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Chapter 4
Gaeil An, Joon S. Park
In this chapter, we discuss the evolution of the enterprise security federation, including why the framework should be evolved and how it has been... Sample PDF
Evolution of Enterprise Security Federation
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Chapter 5
Roy Ng
The hypergrowth of computing and communications technologies increases security vulnerabilities to organizations. The lack of resources training... Sample PDF
A Holistic Approach to Information Security Assurance and Risk Management in an Enterprise
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Chapter 6
John D’Arcy, Anat Hovav
A number of academic studies that focus on various aspects of information security management (ISM) have emerged in recent years. This body of work... Sample PDF
An Integrative Framework for the Study of Information Security Management Research
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Chapter 7
Aditya Ponnam
Organizations worldwide recognize the importance of a comprehensive, continuously evolving risk assessment process, built around a solid risk... Sample PDF
Information Systems Risk Management: An Audit and Control Approach
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Chapter 8
Udaya Kiran Tupakula
In this chapter we discuss Distributed Denial of Service (DDoS) attacks in networks such as the Internet, which have become significantly prevalent... Sample PDF
Distributed Denial of Service Attacks in Networks
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Chapter 9
Andy Luse
This chapter describes various firewall conventions, and how these technologies operate when deployed on a corporate network. Terms associated with... Sample PDF
Firewalls as Continuing Solutions for Network Security
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Chapter 10
Jamie Twycross
The immune system provides a rich metaphor for computer security: anomaly detection that works in nature should work for machines. However, early... Sample PDF
An Immune-Inspired Approach to Anomaly Detection
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Chapter 11
Wasim A. Al-Hamdani
This chapter introduces cryptography from information security phase rather than from deep mathematical and theoretical aspects, along with... Sample PDF
Cryptography for Information Security
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Chapter 12
Carlo Belletini
The chapter introduces and describes representative defense mechanisms to protect from both basic and advanced exploitation of low-level coding... Sample PDF
Memory Corruption Attacks, Defenses, and Evasions
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Chapter 13
Dalila Boughaci, Brahim Oubeka, Abdelkader Aissioui, Habiba Drias, Belaïd Benhamou
This chapter presents the design and the implementation of a decentralized firewall. The latter uses autonomous agents to coordinately control the... Sample PDF
Design and Implementation of a Distributed Firewall
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Chapter 14
Tom Coffey
This chapter concerns the correct and reliable design of modern security protocols. It discusses the importance of formal verification of security... Sample PDF
A Formal Verification Centred Development Process for Security Protocols
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Chapter 15
Ahsan Habib
This chapter develops a distributed monitoring scheme that uses edge-to-edge measurements to identify congested links and capture the misbehaving... Sample PDF
Edge-to-Edge Network Monitoring to Detect Service Violations and DoS Attacks
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Chapter 16
Doug White, Alan Rea
Hard disk wipes are a crucial component of computing security. However, more often than not, hard drives are not adequately processed before either... Sample PDF
A "One-Pass" Methodology for Sensitive Data Disk Wipes
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Chapter 17
Lijun Liao
This chapter deals with the issues concerning e-mail communication security. We analyze the most popular security mechanisms and standards related... Sample PDF
Securing E-Mail Communication with XML Technology
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Chapter 18
Li Yang, Raimund K. Ege, Lin Luo
This chapter describes our approach to handle security in a complex Distributed Virtual Environment (DVE). The modules of such an environment all... Sample PDF
Aspect-Oriented Analysis of Security in Distributed Virtual Environment
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Chapter 19
Information Availability  (pages 230-239)
Deepak Khazanchi
This chapter describes the concept of information availability (IAV) which is considered an important element of information security. IAV is... Sample PDF
Information Availability
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Chapter 20
Siraj Ahmed Shaikh
The purpose of this chapter is to introduce the reader to the research area of formal analysis of authentication protocols. It briefly introduces... Sample PDF
Formal Analysis and Design of Authentication Protocols
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Chapter 21
Rajeev R. Raje, Alex Crespi, Omkar J. Tilak, Andrew M. Olson
Component-based software development offers a promising technique for creating distributed systems. It does require a framework for specifying... Sample PDF
Access Control Frameworks for a Distributed System
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Chapter 22
Manish Gupta, JinKyu Lee, H. R. Rao
The Internet has emerged as the dominant medium in enabling banking transactions. Adoption of e-banking has witnessed an unprecedented increase over... Sample PDF
Implications of FFIEC Guidance on Authentication in Electronic Banking
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Chapter 23
Sue Conger
Historically, companies have automated a security model that analogizes the concept of a “guardian” who monitors incoming and outgoing activities... Sample PDF
Disruptive Technology Impacts on Security
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Chapter 24
Sushma Mishra
Internal auditing has become increasingly important in current business environments. In this era of the Sarbanes- Oxley Act and other similar... Sample PDF
Internal Auditing for Information Assurance
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Chapter 25
William H. Friedman
This chapter is management oriented. It first proposes a general theoretical context for IT disasters within the wider class of all types of... Sample PDF
IT Continuity in the Face of Mishaps
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Chapter 26
Yvette Ghormley
This chapter describes the tools that businesses can use to create a Business Continuity and Disaster Recovery Plan. Utilizing business modeling... Sample PDF
Business Continuity and Disaster Recovery Plans
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Chapter 27
Yvette Ghormley
The number and severity of attacks on computer and information systems in the last two decades has steadily risen and mandates the use of security... Sample PDF
Security Policies and Procedures
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Chapter 28
Arjmand Samuel
This chapter outlines the overall access control policy engineering framework in general and discusses the subject of validation of access control... Sample PDF
Enterprise Access Control Policy Engineering Framework
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Chapter 29
Sushil K. Sharma, Jatinder N.D. Gupta
The purpose of the information security policy is to establish an organization-wide approach to prescribe mechanisms that help identify and prevent... Sample PDF
Information Security Policies: Precepts and Practices
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Chapter 30
Paul D. Witman
This chapter provides a set of guidelines to assist information assurance and security researchers in creating, negotiating, and reviewing... Sample PDF
A Guide to Non-Disclosure Agreements for Researchers
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Chapter 31
Omkar J. Tilak
Software realization of a large-scale Distributed Computing System (DCS) is achieved through the Componentbased Software Development (CBSD)... Sample PDF
Assurance for Temporal Compatibility Using Contracts
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Chapter 32
Arjan Durresi
The latest estimates suggest that there are over two billion cell phone users worldwide. The massive worldwide usage has prompted technological... Sample PDF
Spatial Authentication Using Cell Phones
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Chapter 33
Sushil K. Sharma, Jatinder N.D. Gupta, Ajay K. Gupta
The ability to perform E-Commerce over the Internet has become the driver of the new digital economy. As it has opened up opportunities for... Sample PDF
Plugging Security Holes in Online Environment
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Chapter 34
Erik Graham, Paul John Steinbart
This chapter presents a step-by-step approach to improving the security of wireless networks. It describes the basic threats to achieving the... Sample PDF
Six Keys to Improving Wireless Security
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Chapter 35
Robert W. Proctor, E. Eugene Schultz, Kim-Phuong L. Vu
Many measures that enhance information security and privacy exist. Because these measures involve humans in various ways, their effectiveness... Sample PDF
Human Factors in Information Security and Privacy
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Chapter 36
Wm. Arthur Conklin
Software defects lead to security vulnerabilities, which cost businesses millions of dollars each year and threaten the security of both individuals... Sample PDF
Threat Modeling and Secure Software Engineering Process
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Chapter 37
Christopher M. Botelho, Joseph A. Cazier
The threat of social engineering attacks is prevalent in today’s society. Even with the pervasiveness of mass media’s coverage of hackers and... Sample PDF
Guarding Corporate Data from Social Engineering Attacks
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Chapter 38
Tom Clark
Data storage is playing an increasingly visible role in securing application data in the data center. Today virtually all large enterprises and... Sample PDF
Data Security for Storage Area Networks
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Chapter 39
Edgar Weippl
This chapter outlines advanced options for security training. It builds on previous publications (Weippl 2005, 2006) and expands them by including... Sample PDF
Security Awareness: Virtual Environments and E-Learning
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Chapter 40
Manish Gupta
Enterprises are increasingly interested in new and cost effective technologies to leverage existing investments in IT and extend capabilities to... Sample PDF
Security-Efficient Identity Management Using Service Provisioning (Markup Language)
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Chapter 41
Dwayne Stevens, David T. Green
Voice over Internet Protocol (VoIP) networks signal an evolution in telecommunications that is accelerating the convergence of the Internet and the... Sample PDF
A Strategy for Enterprise VoIP Security
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Chapter 42
Jose M. Torres
This chapter presents an Information Systems Security Management Framework (ISSMF) which encapsulates eleven Critical Success Factors (CSFs) along... Sample PDF
Critical Success Factors and Indicators to Improve Information Systems Security Management Actions
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Chapter 43
Rebecca H. Rutherfoord
This chapter will deal with issues of privacy, societal, and ethical concerns in enterprise security. Security for a company is defined as... Sample PDF
Privacy, Societal, and Ethical Concerns in Security
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Chapter 44
Rodolfo Villarroel, Eduardo Fernández-Medina, Juan Trujillo, Mario Piattini
This chapter presents an approach for designing secure Data Warehouses (DWs) that accomplish the conceptual modeling of secure DWs independently... Sample PDF
An MDA Compliant Approach for Designing Secure Data Warehouses
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Chapter 45
Hai Wang
This chapter introduces the survivability evaluation, especially on the corresponding evaluation criteria and modeling techniques. The content of... Sample PDF
Survivability Evaluation Modeling Techniques and Measures
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Chapter 46
Art Taylor
With the rise of the Internet, computer systems appear to be more vulnerable than ever from security attacks. Much attention has been focused on the... Sample PDF
The Last Line of Defense: A Comparison of Windows and Linux Authentication and Authorization Features
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Chapter 47
M. Pradhan
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Bioterrorism and Biosecurity
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About the Contributors