The research on the security of online transactions in electronic commerce Essay

Introduction and context

Electronic commerce is the carrying of trade via the internet and through other systems networked by use of computers. The volume of trade conducted through this method has increased greatly during these days because of the rapid spread of the internet (Yaya 2004). Online traders are normally known as e-traders. Most of the transactions carried out by means of the internet are carried out via the weld wide web (www).Electronic commerce also involves transfer of information to facilitate those transactions (Gema 2007). This type of trade has greatly concentrated the number of days taken before a global business is completed and by so doing it has reduced the cost of carrying out international trade. Consequently, businesses have enjoyed increased profits as their costs of operations have reduced (Yao 2007). Firms participating in e-commerce are said to be in a market of perfect competition because the market has all the features of a perfect- competitive market, that is, many buyers and sellers, perfect information, a decision of one participant has no impact on the market and so on (Kiprop 2008).

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Though this way of carrying out business has reduced the cost of carrying out business, it has some serious demerits especially maters to do with security of the transactions especially those dealing with transfer of huge sums of money. There Exists people who have been coning people on the internet claiming that they sell goods as well as services but in reality those services do not exist (Kinuthia, S 2009). Others have been hacking on the databases of other companies and stealing vital information of such companies and the information be able to be used by the competitors in that industry to collapse that company (Baabu 2007).

As a result of the issue of security, it requires all the providers of online trade to install security soft wares onto their servers and this is going to be the topic of discussion of this article.

Research question

The question-problem-which has to be answered, i.e. the study question is ‘security of online business in Electronic- Commerce’(Ananda 2008, p. 13).

Aims and objectives

 The aims and the objectives of carrying out this schoolwork is to discover the how the problem of security of online transactions effect the effectiveness and the customer trust in these transactions and to look into the steps which have been taken to curb this problem (Chachari 2009).

Methodology

This refers to the techniques used to execute the study. They include the methods of data collection and also where and how the research was executed. Due to lack of time in addition to resources, we went for secondary data in our research (Kilimo 2009). The sources of these data were mojorly participants of online commerce and those firms which offer security solutions to businesses carrying out trade via the internet. We visited their websites and acquired the important data we needed in order to successfully carry out this study (Gamba 2006).

Practicalities

 This includes the practical aspect of the problem, that is, how the hitch has been solved in real life situation and the methods used to solve the problem.

We will to look at one such e-commerce resolution. Many customers are cautious of transferring their credit card also other confidential information across the Internet. Often, online transactions are concluded via fax or phone because of this worry about security (Wolfs 2006). In addition, numerous online clients are cautious to buy from a seller with whom they are not well-known; for being afraid that they will have no alternative in case there is a problem with the product, or, in case no product is being delivered at all (Gome 2009). Sellers too are worried about security. They are conscious of customer suspicion about the safety of online dealings, and sellers are also worried about the safety and integrity of their interior networks (Bulimo 2009).

In reaction to this, there have emerged a number of new findings that try to deal with the issue of safety of online dealings. An example of such an innovation is what has come to be referred to as SET (protected electronic deal) etiquette. The SET procedure was initially made by Visa as well as MasterCard, along with a number of technology companies (Kamau 2007). It aims to offer more safe and sound protection of credit card information and other secret data that is sent over the Internet. Besides, it makes uses digital certificates and encryption proficiency that makes it probable for customers and sellers to verify the genuineness of the parties concerned with online credit card dealings (Belino 2000).

In a few words, these digital certificates dish up to ensure that the participants to an online business can have confidence in each other. This is made possible by encrypting the messages which are being transferred by the participants, and after that decrypting the messages as they are received. Encrypting means fundamentally, coding a message in such a manner that makes it unreadable to those who are not capable of decoding the communication. The coding is done using a key, a sequence of electronic signals; also only those who encompass this key can interpret the message. Keys can be kept on the hard- drive of a processor, on a CD, or else on a unique smart card (Barak 2009).

Communal key encryption is one type of code making in whereby not one but two exceptional keys are used: the public key, availed to the public, and the personal key, that remains a secret. Public input encryption catalysts the use of digital certificates along with digital signatures (Shango 2009). The process can be explained as follows: The shopper generates an unrestricted and confidential key using a key generation scheme (special software, or some mixture of software as well as hardware). The shopper then gives a certification power, an intermediary, with identifying data, in conjunction with the consumer’s public key (Yeshru 2007). The certificate permit then gives the consumer a certificate. The purchaser then acquaintances the vendor in order to carry out whatever trade that the shopper wishes to carry out with that merchant, for example ordering certain goods, complete with fee information (Baruda 2007). This message with the retailer will be signed digitally by the shopper using the client’s private key, together with the consumer’s certificate, signed by the CA’s unrestricted key. Upon receiving, the vendor verifies the certificate, and confirms that the certificate has not been counseled. The two parties then complete their transaction (Amanaka 2009).

Ethical aspects

Ethics refer to what the society views as being good or bad, that is, whether it is consistent or centrally to the social norms of the society. On social aspects of the issue of e-commerce and the concern about the security of the same, it has been generally accepted that e-commerce is good to the society. The steps taken to deal with the problem of security also satisfies the society and this is evident in the large number of people participating in online transactions nowadays (Amanuda 2009).

In conclusion, we can say that the issue of the security of online transactions is being addressed adequately through innovations by companies and individuals who makes sure that whatever means are being used to threaten the security of the online transactions are being countered timely.

Bibliography

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