Issues in M-commerce.

Need for Internet security Consumers buying products, trading stocks and banking online Credit-card, social security and confidential business information exchanged Security attacks Data theft and hacker attacks Wireless transmissions easier to intercept Secure transaction fundamentals Privacy: no third party Integrity: information unaltered Authentication: proving identities Non-repudiation: legal proof of message received

Issues in M-commerce
Availability
Network stays in operation continuously and are becoming wireless

4 main security issues

Privacy Integrity Authentication Non-repudiation

Issues in M-commerce
There are number ethical and social issues arise from the growth of mobile computing devices, technologies and systems Privacy and access
Security Reliability
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Issues in M-commerce
Privacy and access: The ability to track workers and monitor mobile device users has social and ethical ramifications. Security: Wireless data communication is not as secure as wired data communication. Care and integrity of networked systems is an important principle of mobile systems. Reliability: Mobile systems need to possess the same robust levels of reliability as fixed-wire information systems
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Privacy
The right to be left alone and the right to be free of unreasonable personal intrusions Collecting Information about Individuals
Web Site Registration Cookies Spyware and Similar Methods RFIDs Threat to Privacy Privacy of Employees Privacy of Patients

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Privacy
Privacy is not the same as security. Wireless information systems contain personalized information like location of user, SIM card details Wireless systems must be built to prevent the deliberate /accidental violation of confidentiality. Cookies one of the greatest violations M-Commerce requires extensive systems knowledge of the movements.
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Wireless Internet and the Right to Privacy.

Transfer of customer location information

Companies informing wireless users how personal information will be handled may be difficult on small screen Company may transfer information to partners/affiliates Bankrupt dot-coms can sell consumer information Third-party vendors have own privacy policies

Wireless Internet and the Right to Privacy.

Location-based technology
May facilitate kidnapping and other illegal activities No legislation monitoring use of location-based technology Businesses fear legislation will slow development

Cellular Telecommunications and Internet Association (CTIA) guidelines for privacy

Alert consumer when identifying location Opt-in as standard Consumers can access own information Same protections for all consumers

Wireless Internet and the Right to Privacy.

World Wide Web Consortiums Platform for Privacy Preferences Project (P3P)
Companies release questionnaire asking user privacy desired
XML applications match user preferences with privacy protocols

Means of avoiding legislation Digital redlining: advertisers limit information seen by basing advertisements on users past behavior
Recording of personal activities is privacy issue

Wireless Internet and the Right to Privacy.

The Bankruptcy Reform Act.

Monitors consumer information sale in case of bankruptcy Privacy policies should be followed even during bankruptcy
eBay changed policy stating they could share users personal information with subsidiaries

Privacy
Protection of Privacy
Notice/awareness Choice/consent opt-out clause Agreement that requires computer users to take specific steps to prevent the collection of personal information opt-in clause Agreement that requires computer users to take specific steps to allow the collection of personal information
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Privacy
Protection of Privacy
Access/participation Integrity/security Enforcement/redress

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Privacy
The USA Patriot Act
E-mail and Internet searches Nationwide roving wiretaps Requirement that ISPs hand over more user information Expanded scope of surveillance based on new definitions of terrorism Government spying on suspected computer trespassers with no need for court order Wiretaps for suspected violations of the Computer Fraud and Abuse Act
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Electronic Commerce

Privacy
Privacy Protection in Other Countries
In 1998, the European Union passed a privacy directive (EU Data Protection Directive) reaffirming the principles of personal data protection in the Internet age The directive aims to regulate the activities of any person or company that controls the collection, storage, processing, or use of personal data on the Internet

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Intellectual Property Rights

Intellectual property Creations of the mind, such as inventions, literary and artistic works, and symbols, names, images, and designs, used in commerce.

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Intellectual Property Rights

copyright An exclusive grant from the government that allows the owner to reproduce a work, in whole or in part, and to distribute, perform, or display it to the public in any form or manner, including over Internet
Literary works Musical works Dramatic works Artistic works Sound recordings, films, broadcasts, cable programs
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Electronic Commerce

Intellectual Property Rights

Copyrights
Piracy of Software, Music, and Other Digitizable Material Copyright Protection Approaches digital watermarks Unique identifiers embedded in digital content that make it possible to identify pirated works Digital Rights Management

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Intellectual Property Rights

trademark A symbol used by businesses to identify their goods and services; government registration of the trademark confers exclusive legal right to its use Domain Name Disputes and Resolutions
cybersquatting The practice of registering domain names in order to sell them later at a higher price
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Intellectual Property Rights

patent A document that grants the holder exclusive rights to an invention for a fixed number of years Fan and Hate Sites
cyberbashing The registration of a domain name that criticizes an organization or person

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Ethical, Social and Legal Issues

Ethical issues: Questions about what is good and proper; Legal issues: Questions about ensuring and enforcing compliance with the law and defining, detecting and prosecuting. Tendency technology providers and their customer organizations to concentrate on the introduction of technology at the expense of the social aspects.
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Legal Issues Versus Ethical Issues

EC Ethical Issues
Non-Work-Related Use of the Internet
Employees are tempted to use e-mail and the Web for non-work-related purposes In some companies, this use is tremendously out of proportion with its work-related use The utility of monitoring employee usage can be considered one of the most controversial EC issues

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Legal Issues Versus Ethical Issues

Codes of Ethics: Useful guidelines for a corporate Web policy:
Issue written policy guidelines about employee use of the Internet Make it clear to employees that they cannot use copyrighted trademarked material without permission Post disclaimers concerning content, such as sample code, that the company does not support Post disclaimers of responsibility concerning content of online forums and chat sessions

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Legal Issues Versus Ethical Issues

Codes of Ethics: Useful guidelines for a corporate Web policy:

Make sure that Web content and activity comply with the laws in other countries Make sure that Web content and activity comply with the laws in other countries Make sure that the companys Web content policy is consistent with other company policies Appoint someone to monitor Internet legal and liability issues. Have attorneys review Web content to make sure that there is nothing unethical, or illegal, on the companys Web site
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Unsolicited Electronic Ads: Problems and Solutions

E-Mail Spamming
unsolicited commercial e-mail (UCE) The use of e-mail to send unwanted ads or correspondence What Drives UCE?
Many spammers are just trying to get peoples financial information

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Unsolicited Electronic Ads: Problems and Solutions

Why It Is Difficult to Control Spamming
Spammers send millions of e-mails, shifting Internet accounts to avoid detection Spammers use different methods to find their victims Junk-mail filters Automatic junk-mail deleters Blocking certain URLs and e-mail addresses

Solutions to Spamming

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Free Speech Versus Censorship and Other Legal Issues

On the Internet, censorship refers to governments attempt to control, in one way or another, the material that is presented Donhams First Law of Censorship. This semiserious precept states: Most citizens are implacably opposed to censorship in any form except censorship of whatever they personally happen to find offensive. Childrens Online Protection Act (COPA) exemplifies the protective approach
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Free Speech Versus Censorship and Other Legal Issues

Other Legal Issues Electronic Contracts
A legally binding contract requires a few basic elements: an offer, acceptance, and consideration These requirements are difficult to establish when the human element in the processing of the transaction is removed and the contracting is performed electronically

Intelligent Agents and Contracts

Uniform Computer Information Transactions Act ( 2000), makes clear that contracts can be formed even when a human is not directly involved

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Free Speech Versus Censorship and Other Legal Issues

Taxing Business on the Internet
This issue is extremely important because it is related to global EC, as well as to fairness in competition when EC competes with off-line marketing channels, which requires the collection of taxes

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Free Speech Versus Censorship and Other Legal Issues

The Tax-Exemption Debate
The Internet Tax Freedom Act 1(998) sought to promote e-commerce through tax incentives, by barring any new state or local sales taxes on Internet transactions until October 2001 The U.S. Congress extended the tax moratorium until 2006, giving it time to digest the contents of the report and hash out contentious tax issues

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Free Speech Versus Censorship and Other Legal Issues

The Tax-Exemption Debate
Proposed Taxation in the United States
The National Governors Association, the National League of Cities, and the U.S. Conference of Mayors fought the Tax Free Bill for the Internet The U.S. Congress blocked state and local governments from taxing connections that link consumers to the Internet, at least until November 2007

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EC Fraud and Consumer and Seller Protection

Fraud on the Internet
Online Auction Fraud Internet Stock Fraud Other Financial Fraud

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EC Fraud and Consumer and Seller Protection

Fraud on the Internet
Identity Theft and Phishing

identity theft A criminal act in which someone presents himself (herself) as another person and uses that persons social security number, bank account numbers, and so on, to obtain loans, purchase items, make obligations, sell stocks, etc.

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EC Fraud and Consumer and Seller Protection

Consumer Protection
Third-Party Assurance Services TRUSTes Trustmark Better Business Bureau WHICHonline Web Trust Seal and Others Online Privacy Alliance Evaluation by Consumers Authentication and Biometric Controls
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EC Fraud and Consumer and Seller Protection

Seller Protection
Customers who deny that they placed an order Customers who download copyrighted software and/or knowledge and sell it to others Customers who give false payment (credit card or bad checks) information in payment for products and services provided Use of their name by others Use of their unique words and phrases, names, and slogans and their Web addresses by others
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EC Fraud and Consumer and Seller Protection

What can Sellers Do?
Use intelligent software to identify possibly questionable customers Identify warning signals for possibly fraudulent transactions Ask customers whose billing address is different from the shipping address to call their bank and have the alternate address added to their bank account

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Societal Issues
digital divide The gap between those who have and those who do not have the ability to access electronic technology in general, and the Internet and EC in particular Other Societal Issues
Education Public safety, criminal justice, and homeland security Health aspects
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Virtual (Internet) Communities

virtual (Internet) community A group of people with similar interests who interact with one another using the Internet Characteristics of Communities
One possibility is to classify members as traders, players, just friends, enthusiasts, or friends in need

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Virtual (Internet) Communities

Commercial Aspects of Communities
1. Search communities 2. Trading communities 3. Education communities 4. Scheduled events communities 5. Subscriber-based communities
Electronic Commerce

6. Community consulting firms 7. E-mail-based communities 8. Advocacy communities 9. CRM communities 10.Mergers and acquisitions activities
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Virtual (Internet) Communities

Types of Virtual Communities

Transaction Purpose or interest Relations or practice Fantasy

Financial Viability of Communities: Revenue model of communities can be based on:

Sponsorship Membership fees Sales commissions Advertising Combination of these
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Electronic Commerce

Virtual (Internet) Communities

Eight critical factors for community success:
1. 2. Increase traffic and participation in the community Focus on the needs of the members; use facilitators and coordinators Encourage free sharing of opinions and informationno controls Obtain financial sponsorship. This factor is a must. Significant investment is required 5. Consider the cultural environment 6. Provide several tools and activities for member use; communities are not just discussion groups 7. Involve community members in activities and recruiting 8. Guide discussions, provoke controversy, and raise sticky issues. This keeps interest high

3.

4.

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