Security Threats To E-Commerce - Electronic Payment System - E-Cash - Credit-Debit Cards

E-Commerce refers to the activity of buying and selling things over the internet.
Simply, it refers to the commercial transactions which are conducted online.

E-commerce can be drawn on many technologies such as mobile commerce,
Internet marketing, online transaction processing, electronic funds transfer, supply
chain management, electronic data interchange (EDI), inventory management
systems, and automated data collection systems.
The E-commerce threat is occurring by using the internet for unfair means with the
intention of stealing, fraud and security breach. There are various types of
e-commerce threats. Some are accidental, some are purposeful, and some of them
are due to human error.
The most common security threats are:-
1. Electronic payments system:-

The electronic payment systems have a very important role in e-commerce.
E-commerce organizations use electronic payment systems that refer to paperless
monetary transactions. It revolutionized business processing by reducing paperwork,
transaction costs, and labour cost. E-commerce processing is user-friendly and less
time consuming than manual processing. Electronic commerce helps a business
organization expand its market reach.
There is a certain risk with the electronic payments system.
Some of them are:
i. The Risk of Fraud:- An electronic payment system has a huge risk of fraud. The
computing devices use an identity of the person for authorizing a payment such as
passwords and security questions. These authentications are not full proof in
determining the identity of a person. If the password and the answers to the security
questions are matched, the system doesn't care who is on the other side. If someone
has access to our password or the answers to our security question, he will gain
access to our money and can steal it from us.
ii. The Risk of Payment Conflicts:- In electronic payment systems, the payments
are handled by an automated electronic system, not by humans. The system is
prone to errors when it handles large amounts of payments on a frequent basis with
more than one recipient involved. It is essential to continually check our pay slip after
every pay period ends in order to ensure everything makes sense. If it is a failure to
do this, it may result in conflicts of payment caused by technical glitches.
2. E-cash:-
E-cash is a paperless cash system which facilitates the transfer of funds
anonymously. The e-cash fund can be either stored on a card itself or in an account
which is associated with the card. The most common examples of e-cash systems
are transit cards, PayPal, GooglePay, Paytm, etc.
In e-cash, we stored financial information on the computer, electronic device or on
the internet which is vulnerable to hackers.
Some of the major threats related to e-cash system are:-
i. Backdoors Attacks:- It is a type of attack which gives an attacker unauthorized
access to a system by bypassing the normal authentication mechanisms. It works in
the background and hides itself from the user that makes it difficult to detect and
remove.
ii. Denial of service attacks:- A denial-of-service attack (DoS attack) is a security

attack in which the attacker takes action that prevents the legitimate (correct) users
from accessing the electronic devices. It makes a network resource unavailable to its
intended users by temporarily disrupting services of a host connected to the Internet.
iii. Direct Access Attacks:- Direct access attack is an attack in which an intruder
gains physical access to the computer to perform an unauthorized activity and
installing various types of software to compromise security. These types of software
are loaded with worms and download a huge amount of sensitive data from the
target victims.
iv. Eavesdropping:- This is an unauthorized way of listening to private

communication over the network. It does not interfere with the normal operations of
the targeting system so that the sender and the recipient of the messages are not
aware that their conversation is tracking.
3. Credit/Debit card:-
A credit card allows us to borrow money from a recipient bank to make purchases.
The issuer of the credit card has the condition that the cardholder will pay back the
borrowed money with an additional agreed-upon charge.
A debit card is a plastic card issued by the financial organization to account holders
who have a savings deposit account that can be used instead of cash to make
purchases. The debit card can be used only when the fund is available in the
account.
Some of the important threats associated with the debit/credit card are:
ATM (Automated Teller Machine) -

It is the favourite place of the fraudsters. From there they can steal our card details.
Some of the important techniques which the criminals opt for getting hold of our card
information is:-
i. Skimming:- It is the process of attaching a data-skimming device in the card

reader of the ATM. When the customer swipes their card in the ATM card reader, the
information is copied from the magnetic strip to the device. By doing this, the
criminals get to know the details of the Card number, name, CVV number, expiry
date of the card and other details.
ii. Unwanted Presence:- It is a rule that not more than one user should use the ATM
at a time. If we find more than one person lurking around together, the intention
behind this is to overlook our card details while we are making our transaction.
iii. Vishing/Phishing:- Phishing is an activity in which an intruder obtains the

sensitive information of a user such as password, usernames, and credit card
details, often for malicious reasons, etc.
Vishing is an activity in which an intruder obtains the sensitive information of a user
via sending SMS on mobiles. These SMS and calls appear to be from a reliable
source, but in reality they are fake. The main objective of vishing and phishing is to
get the customer's PIN, account details, and passwords.
iv. Online Transaction:- Online transactions can be made by the customer to do

shopping and pay their bills over the internet. It is as easy as for the customer, also
easy for the customer to hack into our system and steal our sensitive information.
Some important ways to steal our confidential information during an online
transaction are-
-> By downloading software which scans our keystrokes and steals our password
and card details.
-> By redirecting a customer to a fake website which looks original and steals our
sensitive information.
-> By using public Wi-Fi

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E-Commerce refers to the activity of buying and selling things over the internet.

Simply, it refers to the commercial transactions which are conducted online.

The most common security threats are:-

1. Electronic payments system:-

ii. Denial of service attacks:- A denial-of-service attack (DoS attack) is a security

iv. Eavesdropping:- This is an unauthorized way of listening to private

ATM (Automated Teller Machine) -

i. Skimming:- It is the process of attaching a data-skimming device in the card

iii. Vishing/Phishing:- Phishing is an activity in which an intruder obtains the

iv. Online Transaction:- Online transactions can be made by the customer to do

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