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Security Issues
Credit Card Fraud
The single biggest stigma attached to E-commerce is the perceived threat of credit card fraud. It is really quite hard to explain why this is such an issue, particularly when you actually understand the security processes involved.
The Department of Trade and Industry recently issued the results of a survey on the Internet and E-commerce. 37% of people felt that credit card fraud was the biggest disadvantage of buying goods through the Internet. However only 6% of people actually knew someone who had been the victim of credit card fraud and only 2% of people were victims themselves. Hence the myth is far greater than the reality.
The truth of the matter is that credit card fraud exists on the Internet in the same way that it exists in the rest of society. However due to the security systems surrounding the Internet, credit card fraud is still more likely to occur when you give your credit card to a waiter in a restaurant rather than when purchasing online.
Let's not forget that most banks and credit card companies have very strict anti-fraud procedures and in all cases will refund proven fraudulent transactions. In the case of online fraud it is relatively easy to prove you were not the one using your credit card.
Think about it - the merchant that was given your credit card does not have your signature, is unlikely to have your correct postal address or e-mail address and hence cannot show that you were the one responsible for the disputed transaction on your credit card. Therefore you are not responsible for the transaction and the credit card company or merchant will be responsible for any financial losses. The important point is that you will NOT be financially responsible for any fraudulent transactions.
In addition, most credit card companies and banks are now offering total online protection to encourage consumers to use E commerce more frequently. However you should check first with your specific credit card company.
In addition if you are shopping online from home you are protected against Credit Card Fraud by the Distance Selling Regulations.
Security Procedures
Secure Sockets Layer (SSL)
The main process used for securing online transactions is SSL (Secure Sockets Layer). SSL simply allows your PC to encrypt data and then pass it onto another computer, which will decrypt the data and use that data to confirm your purchase (in the case of E commerce). SSL is officially known as a protocol and you should be aware that there are other protocols used on the Internet to allow the secure transfer of data. However SSL is by far the most popular protocol in its field.
When using SSL protocol the website address in your navigation bar should read https://www.website.com instead of http://www.website.com. The extra 's' following http signifies that you are now transmitting data securely.
A website that uses SSL will have a secure server. A server is literally a super-computer owned by an organisation to manage all their Internet transactions and communication. A secure server has the technology in place to decrypt data and is an absolute must for any company wishing to utilise E commerce.
A website that has a secure server will show a padlock in the lower part of the browser window to confirm 128-bit encryption will be used to transfer your personal/ credit card information. However you should be aware that you will not see the padlock when you first visit a website - you will only see the padlock when you have already selected the products you wish to purchase and are ready to start passing information to the merchant. At this point the Internet retailer will transfer you to a secure server and this is when you will notice the padlock. Please see an example
here:
128-bit Encryption
'Encryption is a mathematical process of scrambling a message in a way that can only be reversed with a specific password.'
If SSL is the technology used to transfer the data, then 128-bit encryption is the method by which the data is encoded to ensure that no one can read your personal information whilst it is being sent. In fact when data is encoded using 128-bit encryption it is pretty much unbreakable. It should be noted that the technology used in creating 128-bit encryption is so advanced that many countries ban the export and import of it as it is considered to be a product with military capabilities.
Mathematical experts have calculated that it would take longer than the estimated lifespan of the entire universe to break a 128-bit encrypted message. Whilst we would err on the cautious side of this estimate the fact remains that this technology used to transfer credit card and personal information is very very impressive.
Does my PC have these security features?
Unless you are currently surfing on the oldest of computers the simple answer is YES.
However you can check your PC in the following manner;
If using Internet Explorer:
Open your browser window.
Click on the 'Help' option.
Click on 'About Internet Explorer'.
A window will pop up and there will be a line that reads 'Cipher Strength: 128-bit'
If using Netscape:
Open your browser window.
Click on the 'Help' option.
Click on 'About Navigator' (sometimes called 'About Communicator').
You will be taken to a page that has a number of details about your Netscape browser. If you have 128-bit encryption software you will see the following lines of text:
This version supports U.S. security with
RSA Public Key Cryptography, MD2,
MD5, RC2-CBC, RC4, DES-CBC,
DES-EDE3-CBC
If in either of these cases you do not see the information we have detailed above, you need to upgrade or download the relevant software immediately.
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