Social, Professional and Ethical Issues in Information System - Literature review Example

? BIS3328 Social, Professional and Ethical Issues in Information Systems Day/time of Seminar ……………….……….. Seminar ……………………………………………….…. Student Name: Lemlem Berhie Samuel Student Number: M00472723 Campus: London Hendon Overseas (name) …………………… School of Science and Technology Dr Penny Duquenoy Analyzing the Social, Professional, and Ethical Issues in Information System Online Banking According to Ian (2009), Online Banking can be defined as ‘the banking activities by the consumers through a secured online Internet system / web portal which is operated by the bank. It can be a retail or virtual bank or ATM’. Availing all functions of a bank with just one click of your mouse is not as easy as it seems. It greatly relies on technology. The finest example of online banking is ATM (Automatic Teller Machine) through which customers can perform various banking transactions with the help of using his or her card which is issued by their respective banks (Center for Financial Training., 2009). This has surely been possible with the advancement in technology. Furthermore, this need was fulfilled by the web and software IT designers in a much effective and functional manner, as explained in the book published by the Center for Financial Training. On the contrary, it is necessary to understand if these software and IT systems are in breach of any of the ethical laws or legal principles set by the governing authorities, or if these IT systems are strong and protective enough to avoid any frauds or theft of the client’s information, data, or belongings since it is the technology that leads towards the secruity violations (Center for Financial Training., 2009). Kondabagil, claims that although, online banking has been claimed as the most secured method by the banking sector but it has been facing ups and down regarding the security and privacy of the client’s data and thefts. Cases have been witnessed in which these systems have failed to keep the information of consumers confidential and huge thefts have been made (2007). The topic will be discussed in context to the different laws, principles, and privacy acts that has been introduced so far. How these laws and principles addresses the overall issue of online privacy issues of the citizens or customers. Data Protection Act of 1998 According to the Data Protection Act of 1998, the British Government has provided a detailed list of the provisions that comes under the Act. From ‘Right to Access Personal Data’ to ‘Code of Practice’, ‘Restrictions’ and ‘Penalties’, every topic has been discussed to minimize chances of confusion regarding fraud data usage (Legislation.Gov.UK, 1998). This may help the online banking services and the IT systems that are designed for it. For example, if stricter laws will be applied and handsome penalties and punishments will be given to the accused then he or she will think twice before violating any law or regulation or conducting any ATM crime (Quinn, 2010). Relationship between Privacy and Online Banking There are numerous issues regarding privacy and online banking, which has shown the failure of the IT systems. These issues have given rise to different social, professional and ethical problems in the society. In legal terms, these issues have also violated many regulations, laws, and principles, which are solely designed as a guideline for online social, professional, and legal ethics. Because of this percentage of e-crime in different countries is increasing enormously. According to ‘The 2013 Identity Fraud Report’ issued by the ‘Javelin Strategy and Research’ it was revealed that more than $21 Billion have been stolen through different online fraud cases in banks. Different categories of online banking had been the victim of IT malfunction or ATM theft. It was reported that 5.26% of U.S. adults are affected every year because of this issue. These IT issues vary from social to ethical and legal aspects while talking about online banking and IT systems (Javelin Strategy and Research, 2013). Thieves to make fake transactions or to buy things by adopting the deceptive technique often use the information or data. This has become evident through different scenarios in which stolen or lost cards were used for the purchasing of items either online or traditionally. The issue falls under the applied ethics category of the ethical laws. This calls for serious measures to be taken by the concerned authorities or the banks themselves. The IT designers should also try to follow all the principles and laws regarding software, IT system, and data protection and privacy / security of the client. Since, the previous techniques and claims went all in vague with the amount of the thefts and privacy issues that came to the forefront in the past decade (Adams & McCrindle, 2008). Social Issues As discussed by Adams & Mc Crindle (2008), various social issues such as, crime and hacking, have been witnessed because of data fraud and overall online banking. The crime rate in the society has been increased as it has become easy for hackers to engage into a system and transfer and steal money from other accounts. Similarly, ATM robberies have also their impact on societal issues; they are also giving way to more socio-criminal activities (BBC, 2010). Principles for Data Privacy However, every country has its own principles when it comes to the security and privacy of database and information regarding its citizens such as the ‘International Safe Harbor Privacy Principles’ or ‘Data Protection Principles’. Similarly, for the banking sector different principles have been designed, through which it is to ensure that the date is being correctly used. Every bank claims to have IT systems and software with maximum protection and least theft chances of the data. However, where on one hand these customers do not take the headache of visiting the banks and filling out the cheque and forms on the other hand, there are some negative impacts of the system as well, which are getting worse with time. to counter this issue the banking sector should improve their systems and online banking systems through protective IT technologies to ensure the privacy of their consumers (Quinn, 2010). The UK Government has designed the ‘Identity and Privacy Principles’ to ensure that the rights of customers are well protected and their data is correctly used (GOV. UK, 2012). All the principles are illustrated in detail on the official website of the government of UK (GOV. UK, 2012) so as to ensure that software designers and IT handlers incorporate them in their systems before making any software for the banking system. This will ultimately help the banking system and will act as a protective shield against its customer’s data (Stamatellos, 2007). Legal Issues – Laws According to British Laws, the right to privacy and security is granted to every citizen and under which no one is allowed to go in breach of these laws. Under the British Laws, there are list of other laws (particularly the ‘Online Privacy Law’) that has been issued by the Government of the UK in the interest of the public. It is mandatory that the banking sector should follow all the necessary steps in this regard. The banking official and the IT designers state that they have always considered these laws and have never designed anything that can be found helpful by the thieves or frauds (Legislation.Gov.UK, 2013). Ethical Issues While bringing into consideration different research including Quinn (2010), Stamatellos (2007), Ian (2009) and studies by Riqueline & Rios (2009) and Dorgham (2012), it can be said that the ethical issues such as hacking and breaking into others information which only requires I.D. and password in online banking, ATM, and the IT systems are increasing steadily. The mentioned ethical issues are giving ways to different problems for the public as well as the banking sector itself. Reports have shown the increase in the crime rate regarding data fraud, and ATM thefts have increased gradually within the past couple of years. Ethical issues such as using others information for purchasing stuff, or breaking into other’s systems and ATM through fraud identity are violating the ethics and the laws such as the applied ethics, the Data Protection Act, and the privacy principles. Such ethical problem is moreover considered as a crime according to the English Laws since they are endangering the privacies of their citizens as well as the consumers of the banking sector. It is, however, the duty and responsibility of the banks and the government to ensure that all the ethical theories, applied ethics laws, data protection laws and privacy principles stated by the UK government are being put into practice by their IT systems and no one is crossing the ethical limits or the boundaries through Online Banking (Quinn, 2010). According to (Macintosh, et al., 2000) it is not difficult for the banks or the IT designers to come up with strategies that can decrease the intensity of such thefts or data frauds (Kondabagil, 2007). Advantages and Disadvantages Where on one hand individuals believe that the advantages of online banking and ATM are far greater than anything else, at the same time studies have proved on the other hand that disadvantages surpasses advantages of online banking in a variety of ways. Through online banking; Hackers can break into systems and can intercept the data and defraud customers. The chances of phishing are greater in Online Banking. Fraud transaction can be made. Since no system is found to be perfect, therefore security and privacy of data is at stake. Theft chances through ATM. Data leakage (Dorgham, 2012) are all the issues which in one way or another risks the data and privacy of the customers through online banking. It does not matter, that how much the banks claim for the surety of the data privacy and security of their customers, since hackers know every possible manner to break into these IT systems any time. Unfortunately, there is no strong and effective strategy to combat the issue of fraud online banking and ATM thefts. The data is used by the frauds largely on a daily basis. The Information technology sector should however come up with sound techniques and systems that leave no chances for such people to obtain data or information through encryption. New reforms with better privacy and customer’s security should be introduced. The government should take every possible step to ensure that no one is in breach of the principles and laws that are set. Recommended countermeasures that can be taken by government can be: government can setup a committee that can assess previously reported cases of card frauds. This will help security development bureau to implement consumer protection laws. Public speaking sessions can be scheduled on timely basis for the purpose of educating credit card holders who are prone to get involved in ATM related frauds. By introducing regulations for card holders to report cases of frauds as compulsory act. Keeping security software updated that allow protection shield to the card information being processed online. List of References Adams, A. A. & McCrindle, R., 2008. Pandora's Box: Social and Professional Issues of the Information Age. Chichester: John Wiley & Sons. BBC UK, 2010. E-crime police arrest 19 over UK online bank theft. [Online] Available at: http://www.bbc.co.uk/news/uk-11431989 [Accessed 11 November 2013]. Center for Financial Training., 2009. Banking Systems. 2nd Edition ed. Mason: Cengage Learning. Dorgham, M., 2012. International Journal of Electronic Banking. 1(3), p. Online. GOV. UK, 2012. Identity and privacy principles. [Online] Available at: http://digital.cabinetoffice.gov.uk/2012/04/24/identityand-privacy-principles/ [Accessed 11 November 2013]. Ian, S., 2009. Online Banking and the Role of CRM. Munchen : GRIN Verlag. Javelin Strategy and Research, 2013. 2013 IDENTITY FRAUD REPORT: Data Breaches Becoming a Treasure Trove for Fraudsters, Pleasanton : Javelin Strategy and Research. Kondabagil, J., 2007. Risk Management in Electronic Banking: Concepts and Best Practices. Singapore: John Wiley & Sons. Legislation.Gov.UK, 1998. Data Protection Act 1998. [Online] Available at: http://www.legislation.gov.uk/ukpga/1998/29/contents [Accessed 11 11 2013]. Legislation.Gov.UK, 2013. UK Public General Acts. [Online] Available at: http://www.legislation.gov.uk/ukpga [Accessed 11 11 2013]. Quinn, M. J., 2010. Ethics for the Information Age. Harlow: Pearson Education. Riquelme, H. E. & Rios, R. E., 2009. Internet banking customer satisfaction and online service attributes. Journal of Internet Banking and Commerce, Volume 14, p. Online. Stamatellos, 2007. Computer Ethics: A Global Perspective. Toronto: Jones and Bartlett Publishers. Read More