Security of Credit Card Information and Personal Information - Assignment Example

Privacy and Security in e-Commerce Security of credit card information and personal information s has become a great concern to participants of e-commerce business. Increased number of customers begins to fear for the threat of losing money when making purchases and payments online. E-commerce operations take place in an environment that is faced by both ethical and legal threats. Hackers and crackers have become a hindrance in executing transactions safely online (Becker, 2008). Open environment is one that allows customers to transact business with the organizations without having login or password that enhances the security of the information passed between the customer and the business (McCarthy, Campbell & Brownstein, 2001). An overly secure environment looks into the security of the transaction by creating passwords and logins in order to ensure privacy and confidentiality of the details of the transactions. In cases where e-commerce involves financila transactions, the risk of loss of money becomes high hence making security issues key in e-commerce. However, both an open and overly secure environments have both advantages and disadvantages. There are various advantages of conducting business in open environments. First, users will not require login and passwords in order to navigate on the websites. Paying for items or making orders will not require one to give login for identification purposes. This makes the process easy and faster compared to a secure environment where login is required. The graphical user interface of open environments are simpler and easy to use hence cause customer satisfaction and convenience (Becker, 2008). Cost advantage also arises in an open environment. There is no cost involved in developing a secure environment thereby reducing the need to engage experts in developing the site. The costs of hosting such a website is also lower compared to that of an overly security environment which requires shrewd experts to develop. However, cost may arise where customers sue the business for protection purposes. On the other hand, browsing in an insecure open environment is characterized by various drawbacks. To begin with, the computers can be hacked thus infringing on private information. This may make the future transactions insecure and further cause loss of resources. Moreover, it would be easier to get computer virus attacks, which could stall operations and further cause loss of data that may be expensive to acquire. In addition, a company can be faced by innumerable cases from customers for violation of privacy. Because of the multiple suits, the company risks spending colossal amounts in compensating the customers. In instances that the transactions involve payment of money or transfers of money, open environments are inappropriate because unauthorized third parties might access the customers’ private information. There are cases in which customers have been defrauded money hence causing panic and financial losses to the parties. If this happens, the customers’ confidence and trust is lost hence making open environments riskier and disadvantageous. Similar to open environment, an overly secure environment also has several advantages and drawbacks. On the side of the advantages, overly secure environment makes customers feel secure therefore promoting online sales. The high number of sales increases the revenues and reduces transaction cost associated with physical transactions. The businesses in ensuring security further achieves their fiduciary obligations of making their customers secure and hence get shielded from legal cases that may arise. A feeling of security encourages repeat purchases. Secondly, overly secure environment ensures that the business information is protected from hackers and crackers. When online purchases are made in an open environment, the business equipments and information will remain confidential from being stolen. Businesses that work in open environment normally lose information from crackers and in extreme cases lose resources through cyber crime. Whereas, an overlay environment is advantages, it also has several disadvantages. First, the cost of developing a secure website and maintaining such an environment require enormous resources. Money will be required in employing servers and internet experts to continuously monitor the security of the system. This will reduce the profit margin of the business and increase maintenance costs. In addition, transacting in a secure environment needs time and may sometimes be complex for some customers. Overly security environment requires customers to recall their personal login information, employs the use of firewalls and data encryption. Many customers are not well conversant with these concepts. This would make them frustrated in doing transactions hence reducing their loyalty to the business. The time required in loading customer information and in navigating through the site will be increased. In conducting business online, businesses are faced with various legal and ethical issues with regard to the private information of customers. Customers have the constitutional right of having their personal information remaining private and confidential (Salehnia, 2002). In executing their transactions online, the businesses have the mandate of ensuring that customers’ personal information e.g. the account balances, and other private information is not exposed to the business. Businesses should therefore prevent the customers from having their information accessed by hackers and crackers who can utilize the information for malicious intent. Additionally, the businesses have the ethical obligation of making their customers information remaining confidential. There are personal information that should only remain known by only the business and the customers (Tavani, 2004). protection of the websites when navigating must therefore be guaranteed by the business that expects to survive in the online retailing. Legal issues further remain a factor that influences e-business operations. Governments have the obligations of ensuring that their customers are protected from illegal malpractices of businesses (Salehnia, 2002). In doing so, the governments formulate rules and regulations that will ensure that the fundamental rights of consumers are protected. Some of the rights that must be addresses by the governments include the right to accessing right information, confidentiality of customers, protection of customers from fraud and protecting businesses from protection of copyrights and patents. In pursuing this mandate, businesses operations may be affected negatively or positively. Assessing the impacts of legislations on e-business operations therefore remain a key factor in ensuring success (Salehnia, 2002). E-businesses have the obligation of protecting the customers from fraud and potential losses of resources. They also have the challenge of keeping their operational costs low to make profits. However, the cost of maintaining customers through ensuring the security of their information override that of keeping low the costs of maintenance and operation. It is therefore crucial that businesses in doing their day-to-day operation. Maintains a tradeoff of cost reduction and security enhancement of their customers. Customers who feel secure in conducting their businesses online will guarantee the long-term survival and profitability of the business. E-businesses must further remain committed to ensuring adherence to legal and ethical standards that are set to regulate their operations. References Becker, S. A. (2008). Electronic Commerce Concepts, Methodologies, Tools and Applications. Hershey, Pa.: IGI Global (701 E. Chocolate Avenue, Hershey, Pennsylvania, 17033, USA). McCarthy, M. P., Campbell, S., & Brownstein, R. (2001). Security Transformation: Digital Defense Strategies to Protect your Companys Reputation and Market Share. New York: McGraw-Hill. Salehnia, A. (2002). Ethical Issues of Information Systems. Hershey, PA: IRM Press. Tavani, H. T. (2004). Ethics and Technology: Ethical Issues in an Age of Information and Communication Technology. Hoboken, NJ: Wiley. Read More