Quiz 17: E-Commerce Fraud

Business

Explanation: • The e-business transactions pose heightened fraud risks in various ways. Frauds are committed when there is very high pressure of cash flow of large amounts during online transactions or during electronic transfer of funds. • There is also immense risk of data theft when there is any unauthorized access to an individual's or an organization's data through attacks like sniffing, spoofing or phishing. Perpetrators or hackers are able to remove, steal and replicate or impersonate authorized users' credentials, identity and misuse these to commit fraud. • Weak or erroneous security system or protocol in an e-business transaction attracts fraudsters to commit crime. E-commerce fraud occurs when such transaction happens between a buyer and a seller where nobody is aware of or knows each other. • When the information system is complex enough to prevent installation of protection measures, creates opportunity for fraud. Another opportunity for risk lies when advanced, innovative technology is used for easy and fast data or cash transactional purpose but the security protocol is lagging behind.

Explanation: • The e-business transactions pose heightened fraud risks in various ways. Frauds are committed when there is very high pressure of cash flow of large amounts during online transactions or during electronic transfer of funds. • There is also immense risk of data theft when there is any unauthorized access to an individual's or an organization's data through attacks like sniffing, spoofing or phishing. Perpetrators or hackers are able to remove, steal and replicate or impersonate authorized users' credentials, identity and misuse these to commit fraud. • Weak or erroneous security system or protocol in an e-business transaction attracts fraudsters to commit crime. E-commerce fraud occurs when such transaction happens between a buyer and a seller where nobody is aware of or knows each other. • When the information system is complex enough to prevent installation of protection measures, creates opportunity for fraud. Another opportunity for risk lies when advanced, innovative technology is used for easy and fast data or cash transactional purpose but the security protocol is lagging behind.

As a Student I contacted mydala.com which deals in all types of products like beauty, electronics, books, appliances, gifts etc where I asked the Company representative that if I purchase any of the goods how I can be ensured that my personal information and banking information is not shared. At this the Company representative replied that there are personal protocols and these protocols are placed both in terms of their computer infrastructure, data collection and the establishment of the personnel protocols in handling personnel information and password changes. He further explained that all the transactions between client and Company shall be examined through protocols such as secured socket layers and their different certificates and encryption security measures. Further he explained that there is proper monitoring of sensitive information, authentication techniques, virus detection tools, and fraudulent connection discovery and database storage. On code of conduct he replied that Company maintain proper code of conduct relating to the privacy policy, content, enforcement safeguard against unauthorized activities. I am satisfied with the explanation of the representatives and I will conclude the deal with the Company.

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