Introduction to Security Problems in E-commerce

4.1 Introduction to Security Problems in E-commerce

As e-commerce is being rapidly developed and widely applied, e-commerce technology has exerted influence on various aspects of our daily life, and becomes the key factor of a nation’s competitive power. The e-commerce information system of enterprises stores a great deal of commercial secrets concerning the long-term development of enterprises. In economic activities, e-commerce systems

Introduction to E-commerce

can bring convenience, efficiency and low cost to commercial activities. Personal information system usually stores private information of property and accounts; individuals are able to communicate with each other via the Internet, such as inquiring information, getting messages; moreover, there are also other personal consumption such as purchase, ticket booking and e-settlement. E-commerce security is closely concerned about the protection of citizens’ privacy, and the survival and development of enterprises. The capability of guaranteeing e-commerce security has become a symbol as well as an ace of trumps of the competitive power of enterprises in the 21st century.

The first and the most important problem encountered in the process of digitalizing the traditional commercial activity is the security problem. A complete security problem includes the response reliability of the e-commerce system when it reacts to various accidents and vicious attacks. This chapter focuses on study of problems that are shown by e-commerce under the malicious attacks and relevant countermeasures. Traditional commercial activities are carried out from face-to-face negotiations, signing contracts to fund transfer via banks and delivery of goods. Traditional commercial process is exposed to tremendous risks; for example, one of both parties might not fulfill the contract after signing it, or fail to provide the required cargo after receiving the payment, or fail to pay after receiving cargo. Problems like these can be controlled within certain limit through careful operations, mutual understanding and relevant legal means; however, negative examples are also very common. E-commerce has transcended the restriction of space and time, making it possible to negotiate and sign contracts at any time and any place. In this process, both parties do not have to meet, and the contracts and payment are digitally made. Thus security problem will become very important. Major issues are listed below:

The authenticity of the identity of both parties is how to know the participant of the negotiation is not counterfeited by someone else. If we are negotiating with some cheater, we might let out some important information, which may cause serious losses. How can we judge whether a document comes from someone really as declared?

The secrecy of information exchange: in the process of negotiation, a tremendous amount of information should be exchanged, which usually includes the names, prices, quality of the commodities, as well as the time and place of the commodity exchange. All such information has great value and needs to be protected. If the information is divulged to the competitors, they are likely to take advantage of what they know so as to cause tremendous losses to the negotiator. Thus it is of great importance as to keep the crucial information confidential.

The integrity of information: how can the receiving party make sure that the information received is the complete message that is sent from the other party? And is the message not replaced by another faked message in the process of being transmitted.

Non-repudiation: If one party wants to invalidate the contract which has been signed because of adverse marketing situations, one of the choices it may make is

4 Security Technologies in E-commerce

to deny authenticity of the agreement. Issues like these are also very important problems encountered in the e-commerce process.

Anti-attack of e-commerce system: when an enterprise has carried out e-commerce, it will heavily rely on the e-commerce system, which in turn will determine the survival of the enterprise. In view of the fatal issue, the problem as to whether the system could stand various attacks is also of great concern.

Privacy protection problem: in the traditional commercial process, when we go shopping, we check the commodity and pay for it in person. The vendor would not know who we are. In the e-shopping process, however, the registration is required all the time, which may reveal a lot of private information such as gender, age, occupation, income, ID number and credit card number. But how can we know that our private information is protected rather than illegally used?

The security problems originated from the Internet itself: First of all, it is because of the openness of the Internet. The Internet is a free and open world, which enables the global information exchange. On the other hand, it provides a convenient way to gather and distribute private data. Secondly, the diversity of the Internet users is also a threat to security. Since the information is transmitted online via the routers while the users cannot know which one of the routers are involved in the process, it is possible that someone will be able to view the user’s information by scanning and tracking data. So technically speaking, any online data is possible to be eavesdropped.

Problems mentioned above are just part of the security problems involved in e-commerce. Although some of them can be solved with technical means, many others can only be solved by economic and legal means. This chapter will give a brief introduction to these problems and the technical solutions to them.

The complete security architecture of computer network includes the network’s physical security, access control security, system security, user security, information encryption, secure transmission and security management. Between the attacker and the resources multiple security measures should be set up with relevant technologies to baffle the malicious attacks and enable tracking the intruders.

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