This website uses cookies to ensure you have the best experience. Learn more

E Commerce Fraud Essay

2118 words - 8 pages

As internet use develops, both businesses and consumers are utilizing this opportunity to achieve their goals. Some of these goals include expanding into greater markets for businesses and shopping online for consumers. These online transactions now encompass much more than the traditional online banking. They represent the billions of merchants and consumers whom take part in online transactions twenty-four hours a day. With this, credit cards and online transactions are quickly becoming an important legal issue. The different areas include: types of payment methods and their components, legislation, and online security such as encryption software. All parties must understand this complex scenario to successfully navigate and participate in any online transactions.
With consumers, businesses, and governments transacting business on the internet more than ever, various electronic payment methods have arose. The most widely used payment method is credit cards, which account for eighty percent to ninety percent of internet payments . Debit cards are also another major medium of payment. Variations such as electronic money or e-money and stored value cards have added features beyond the normal credit card and debit card. The goal of these variations of electronic payments has been to make purchasing simpler by allowing the transfer of cash value to a card . Unlike the debit card that deducts money from an account, the card itself represents the account. For example, retailers are replacing the traditional gift certificates for these stored value cards because they allow more purchasing options. They can be used either online or offline. Some stored value cards can be recharged with cash while others are disposable. An example of a popular value card is the American Express Gift card which can be used to make any purchases at vendors which accept American Express.
Some of the newer internet-based payment systems have e-wallets where value is transmitted through computers. E-wallets allow the holder to make small purchases both online and offline such as a meal. The payment is deducted from the cardholder’s online account immediately. E-wallets are typically set up in conjunction with a credit card or a debit card. When they contain an embedded computer chip, they are known as smart cards . One percent of the smart cards issued were in the U.S., while eighty-five percent issued were in the E.U . The two major electronic payment systems between businesses are wire transfers and letters of credit.
The main benefits of these electronic payments systems are efficiency and cost savings. “Estimates are that processing payments electronically saves $1 per transaction over processing paper checks” (Hiller 244). Consumers are also taking advantage of online banking and bill payments as this has seen increases in use .
The credit card processing system is “based on trust and is designed to protect everyone involved:” merchant, issuing bank, and cardholder. AA...

Find Another Essay On E-Commerce Fraud

The Pros and Cons of E-commerce Today

2190 words - 9 pages e-commerce, this is no longer possible. 5. The nature of e-commerce introduces a lot of security and privacy issues. There is always the risk of credit card fraud, especially with malicious hackers targeting credit card databases of online stores. Consumers also run the risk of identity theft as their personal details are captured by e-commerce websites. Anyone who manages to access this treasure trove of information can use it for nefarious

Credit Card Fraud Essay

1267 words - 6 pages ," including an account number, increased the maximum penalties of incarceration and fines, and provided a substantial repeat-offender penalty (U.S. Department of Justice, 2013). Although the legislation was enforceable at the federal level, the majority of credit card fraud was still investigated by state and local agencies. Interstate agency commerce was not as common until the emergence of the electronic era in the 1990s. Much of the


1180 words - 5 pages covers situations where one purchase goods on Internet by electronic transactions. In India though the Government has promoted e-commerce aggressively which is indirectly a promotion to e-consumers activities, focusing especially on the delivery of services and legal controls for the online sale of goods have yet to catch up with those for conventional shopping. The Internet has become a fertile field for fraud. It allows fraud promoters to mimic

e-Business and e-Commerce Infrastructure

2009 words - 8 pages E-Commerce E-commerce (electronic commerce) can be defined as commercial transactions of goods and services over the internet and other computer networks (Chaudhury & Kuilboer, 2002). It consists of online shopping, online banking and e-learning (Tkacz & Kapczynski, 2009). E-commerce is becoming increasingly popular since the spread of the internet. The e-commerce users are businesses, consumers and government departments (Kessler

E-commerce: Its development and future prospective

696 words - 3 pages more prone to fraud To organizations • Lack of universal standards for transaction processing • The cost benefit of using e-commerce is difficult to quantify in traditional accounting terms The future of e-commerce Competition among businesses is not going to slow any time soon. With so much data available about consumer markets, the businesses that have future are those that will personalize their customer’s needs and wants. This means that

Foreign Direct Investment (FDI) in E-commerce in India

3040 words - 12 pages payment fraud, and to share information with suppliers and business partners. With further improvement in payment and delivery system it is expected that India will soon become a major player in the e-commerce market. A report by the Internet and Mobile Association of India has revealed that India’s e-commerce market is growing at an average rate of 70% annually and has grown over 500 % since 2007.4 There have been profound changes in the e

Retail in Australia

1677 words - 7 pages straight about credit card fraud for consumers. Retrieved November 7, 2004, from: Department of communications, information technology and the arts, (2001) Intensity: international benchmarking: B2C e-commerce. Retrieved: November 13, 2004, from:


1910 words - 8 pages Government Printing Office.Hagan, Frank E. 1997. Introduction to Criminology: Theories, Methods and Criminal Behavior, 4th edition.Kerry, J. and Brown, H., The BCCI Affair. Washington, US Government Printing Office, 1992.MacErlean, Neasa. 1993. "Fraud Prevention and the Accountant." Accountancy 112:42-44.Russell, Ronald C. 1995. "Understanding Fraud and Embezzlement."Ohio CPA Journal 54/1:37-39.SAS110. [Online]. Available:


6291 words - 25 pages no provision for adjudicating fraud and there may be no legal limit on liability, say, for a lost or stolen credit card). It is necessary to distinguish these concerns from the general security concerns (i.e., transaction privacy, protection and security) since they may not be addressed by the employment of an effective encryption method (or other security measure).Is e-commerce helpful to the women sector? How has it helped in empowering women

Security and Private Issues in Ecommerce

1568 words - 7 pages against any party violating an agreement after the fact. THREATS TO E-COMMERCE: Strategies for e-commerce security address two issues mainly to protect the integrity of the business network and its internal systems and security compliance of transactions between the customer and the company. There are three types of security threats Denial of Service unauthorized access theft and fraud Denial of service : There are mainly two types of DOS

The Internent Grows More Dangerous

986 words - 4 pages As the internet grows vastly the more dangerous it becomes to its users. With the new advances in technology cyberspace fraud has been increasing. These new advances have made the internet vulnerable to various kinds of e-commerce fraud. New techniques to detect and prevent cyber fraud have been developed to discover and prevent criminals before the fact, rather than after the damage have been done. Individuals and businesses should recognize

Similar Essays

Discuss E Commerce: Its Development And Future Perspectives

743 words - 3 pages include; inadequate to lack of B2C bandwidth, fraud that emanates from poor quality control, and privacy invasion. Some consumers and business also fear that are so many risks that are associated with e-commerce. These current barriers to e-commerce will form part of the future perspectives in improving online trading. Regulatory authorities thus need to build clearer regulations to streamline e-commerce. There is also a need to create more effective

E Commerce Essay

876 words - 4 pages ) and might not consider that filing an official fraud claim is worth the hassle. However, the 2010 RSA Online Fraud Report indicates that only 1.5% of all reported fishing attacks had been in Canada. The article “E-commerce thrives in Canada” also reports that about 36% of all Canadians are concerned about their private information being online. Nevertheless, an estimated 47.9% of all Canadians are on facebook, according to a report by the

E Commerce And Vladimir Zwass Essay

3020 words - 12 pages necessarily be the same as those in the other nation. However, the major barriers to e-commerce include: Security: this has been of great concern for both the producers and the consumers. Several nations do not have laws regarding information that is placed on the internet. The various parties in the e-commerce fear that data they place on the internet may be accessed by unintended persons and used for fraud activities. Technology infrastructure: this

Benefits Of Ecommerce Essay

835 words - 3 pages E-commerce (electronic commerce) can be defined as commercial transactions of goods and services over the internet. and other computer networks. It consists of online shopping, online banking and e-learning. E-commerce is becoming increasingly popular since the spread of the internet. The e-commerce users are businesses, consumers and government departments. E-commerce is controversial but the advantages of it greatly outweigh the