E-Commerce: Concept, components; Elements of E-Commerce security, E-Commerce threats; Concept, components and modes of digital payments.

 

E-Commerce: Concept, components; Elements of E-Commerce security,

E-Commerce threats; Concept, components and modes of digital payments.

Concept: E-commerce refers to the activity of buying and selling goods or services over the internet. In simple terms, it involves conducting commercial transactions online. E-commerce utilizes various technologies, such as mobile commerce, internet marketing, online transaction processing, electronic funds transfer, supply chain management, and electronic data interchange (EDI).

Components for E-Commerce

 

·    User

·    E-commerce vendors

·    Technology Infrastructure

·    Internet/ Network

·    Web Portal

·    Payment Gateway

 

 

 User: This may be individual / organization or anybody using the e-commerce platforms.

 

E-commerce Vendors: This refers to the organization or entity providing goods or services to the user. For example, websites like:

Flipkart ,Amazon, Myntra, Myntra, Snapdeal,Ajio,Tata 1MG,Nykaa, Pepperfry, Blue Stone, KazarMaxetc

 

India’s online retail market is on a rapid growth trajectory, projected to reach INR 4,416.68 billion in 2024 and a staggering INR 7,591.94 billion by 2029! 

 

 

 

Technology Infrastructure: 

 

Mobile Apps: Mobile apps are developed on two major platforms, iOS (for iPhones) and Android. Companies use these apps to run and grow their businesses effectively.

Digital Libraries: Digital libraries can vary greatly in size and scope. They may be maintained by individuals, organizations, or affiliated with established physical libraries or academic institutions. The digital content can be stored locally or accessed remotely through computer networks.

Data Interchange: Data interchange refers to the electronic communication of data. To ensure the accuracy and efficiency of data exchange between multiple participants in e-commerce, business-specific protocols are used.

 

Internet / Network: This is a key factor in the success of e-commerce transactions.Internet connectivity is essential for any e-commerce transaction to be completed.

Faster internet connectivity leads to smoother and more efficient e-commerce experiences. Many mobile companies in India have already launched 5G services to enhance connectivity.

Web Portal: This provides the interface through which individuals or organizations conduct e-commerce transactions. The web portal is the application that users interact with to engage with an e-commerce vendor. This interface can be accessed via desktops, laptops, mobile devices, and even smart TVs.

Payment Gateway: This refers to the method through which customers make payments. Payment gateways are the systems used by e-commerce or m-commerce vendors to collect payments. Examples include:

Credit/Debit Card Payments

Online bank transfers

Vendor-specific payment wallets

Third-party payment wallets such as Paytm, GPay, etc.

Cash on Delivery (COD)

Unified Payments Interface (UPI)

 

Elements of Good E-Commerce Security

In order to protect information, a solid, comprehensive application security framework is needed for analysis and improvement. This application security framework should be able to list and cover all aspects of security at a basic level.

 

The six essential security elements

Availability

Looking at the definition, availability (considering computer systems), is referring to the ability to access information or resources in a specified location and in the correct format. When a system is regularly not functioning, information and data availability is compromised and it will affect the users. Besides functionality, another factor that effects availability is time. If a computer system cannot deliver information efficiently, then availability is compromised again. Data availability can be ensured by storage, which can be local or offsite.       

 

Utility

Considering the definition, utility refers to something that is useful or designed for use. Normally, utility is not considered a pillar in information security, but consider the following scenario: you encrypt the only copy of valuable information and then accidentally delete the encryption key. The information in this scenario is available, but in a form that is not useful. To preserve utility of information, you should require mandatory backup copies of all critical information and should

control the use of protective mechanisms such as cryptography. Test managers should require security walk-through tests during application development to limit unusable forms of information.

Integrity

In the context of computer systems, integrity refers to methods of ensuring that the data is real, accurate and guarded from unauthorized user modification. Data integrity is a major information security component because users must be able to trust information. Untrusted data compromises integrity. Stored data must remain unchanged within a computer system, as well as during transport. It is important to implement data integrity verification mechanisms such as checksums and data comparison.

Authenticity

Regarding computer systems, authenticity or authentication refers to a process that ensures and confirms the user’s identity. The process begins when the user tries to access data or information.

The user must prove access rights and identity. Commonly, usernames and passwords are used for this process. However, this type of authentication can be circumvented by hackers. A better form of authentication is biometrics, because it depends on the user’s presence and biological features (retina or fingerprints). The PKI (Public Key Infrastructure) authentication method uses digital certificates to prove a user’s identity. Other authentication tools can be key cards or USB tokens. The greatest authentication threat occurs with unsecured emails that seem legitimate.

Confidentiality

Defining confidentiality in terms of computer systems means allowing authorized users to access sensitive and protected information. Sensitive information and data should be disclosed to authorized users only. Confidentiality can be enforced by using a classification system. The user must obtain certain clearance level to access specific data or information. Confidentiality can be ensured by using role-based security methods to ensure user or viewer authorization  or access controls that ensure user actions remain within their rolesfor example: define user to read but not write data.

Nonrepudiation:

Nonrepudiation refers to a method of guaranteeing message transmission between parties using digital signature and/or encryption. Proof of authentic data and data origination can be obtained by using a data hash. While the method is not 100 percent effective (phishing and Man-in-the Middle attacks can compromise data integrity), nonrepudiation can be achieved by using digital signatures to prove the delivery and receipt of messages.

 

Concept of E-Commerce Threats

E-commerce threats refer to any potential danger that could compromise the security, functionality, and trustworthiness of an online business. These threats can come from external sources like hackers, malware, or fraudsters, as well as internal sources from employee misconduct or system weaknesses etc.

Components of E-Commerce Threats

1. Security Threats
• Phishing: Fraudsters send deceptive emails or set up fake websites to steal personal and financial information.
• Malware: Malicious software, such as viruses or ransomware, infiltrates systems to disrupt operations, steal data, or demand ransom.

 

2. Privacy Threats

Data Breaches: Unauthorized access to sensitive customer information (such as personal details or payment data) stored by an e-commerce business.

 

Unsecured Transactions: When payment or personal data is transmitted without proper encryption, it can be intercepted and used fraudulently.

3. Fraud Threats

Credit Card Fraud: Unauthorized use of stolen credit card information for making purchases, causing financial losses for both businesses and customers.

Identity Theft: Fraudsters steal and use someone else's identity to conduct transactions, causing damage to the victim’s financial standing.

 

4. Operational Threats

Server Crashes: Unforeseen system failures can disrupt operations, leading to loss of sales and customer dissatisfaction.

Insider Threats: Employees or contractors with access to sensitive systems or data misuse their privileges for personal gain or harm to the business.

5. Reputational Threats

Negative Publicity: Poor handling of data breaches, customer complaints, or security issues can result in bad press, reducing customer trust and future sales.

Fake Reviews: Competitors or disgruntled customers may post false negative reviews, damaging the business’s reputation and discouraging potential customers.

6. Supply Chain Threats

Vendor Risks: Third-party vendors who handle parts of the supply chain may introduce vulnerabilities, such as weak security practices, affecting the e-commerce business.

Delivery Failures: Disruptions in the supply chain, like late deliveries or lost packages, can frustrate customers and harm the company's reputation.

 

 

Key Strategies for Mitigating E-Commerce Threats

• Implement strong encryption and secure payment gateways to protect sensitive data.
• Regularly update and patch security systems.
• Use firewalls and intrusion detection systems to monitor and block malicious activities.
• Educate customers and employees about the risks of phishing and other cyber threats.
• Implement multi-factor authentication and strong password policies to prevent unauthorized access.

 

Modes of Digital Payments

1. Credit/Debit Cards: The most common form of online payment where customers enter their card details to complete a purchase. These transactions are processed via payment gateways.
2. Electronic Wallets (E-wallets): Digital wallets like PayPal, Google Pay, and Apple Pay store users’ payment information securely, allowing for faster and more convenient transactions.
3. Net Banking: A payment method where customers use their bank’s online platform to transfer funds directly from their bank accounts.
4. Unified Payments Interface (UPI): In India, UPI allows instant money transfers between bank accounts using a mobile phone app, often without entering card or account details.
5. Mobile Banking Apps: Apps provided by banks that enable users to make payments or transfer money directly from their bank accounts using their mobile devices.