Unit 4: E-commerce Security and Payment Systems
This unit focuses on one of the most critical aspects of e-commerce: security. For online commerce to function, both customers and merchants must be confident that their data and their money are safe.
We will explore the e-commerce security environment, identifying the major threats that businesses and consumers face. We will then examine the key technology solutions used to combat these threats, such as encryption, as well as the management policies that are necessary for a comprehensive security strategy. Finally, we will look at the different types of electronic payment systems that facilitate online transactions.
E-commerce Security Environment
The e-commerce security environment is complex and rapidly changing. It is important for businesses to understand the various security threats and to implement a comprehensive security plan to protect themselves and their customers. There are six key dimensions to e-commerce security:
1. Integrity
Integrity refers to the ability to ensure that information being displayed on a website or transmitted or received over the Internet has not been altered in any way by an unauthorized party.
2. Nonrepudiation
Nonrepudiation is the ability to ensure that e-commerce participants do not deny (i.e., repudiate) their online actions.
3. Authenticity
Authenticity is the ability to identify the identity of a person or entity with whom you are dealing on the Internet.
4. Confidentiality
Confidentiality is the ability to ensure that messages and data are available only to those who are authorized to view them.
5. Privacy
Privacy is the ability to control the use of information a customer provides about himself or herself to an e-commerce merchant.
6. Availability
E-commerce Security Environment in Nepal
The e-commerce security environment in Nepal is still developing. While there have been significant improvements in recent years, there are still a number of challenges that businesses and consumers face.
Some of the specific security challenges in the Nepali e-commerce environment include:
- Prevalence of Cash on Delivery (COD): The high prevalence of COD in Nepal creates a number of security risks. For example, there is a risk of robbery of delivery personnel, and there is also a risk of customers refusing to pay for their orders.
- Lack of Awareness about Online Security: Many consumers in Nepal are not aware of the risks of online shopping. This makes them vulnerable to phishing scams and other forms of online fraud.
- Lack of Strong Legal and Regulatory Framework: The legal and regulatory framework for e-commerce in Nepal is still developing. This can make it difficult to prosecute cybercriminals and to protect the rights of consumers.
- Limited Use of Secure Payment Gateways: While the use of digital wallets is growing, many smaller businesses still rely on less secure methods like bank transfers or even social media messaging for payments, which increases the risk of fraud.
