e-Commerce: Global and Local Problems and Issues
Business and trade have undergone many transformations – from the olden method of bartering to exporting and importing to what is the current trend, that is, e-Commerce. Now considered the modern marketplace, Internet e-Commerce is a popular system of doing remote business deals, shopping, and buying and offering services. Improvements on how business deals are completed including business meetings and transactions can now be done over the internet regardless of the size and type of business one is engaged in ("What is e-Commerce", 2012). However, because transactions are mostly done online, it is inevitable that some anomalies happen. Business threats and problems from hackers and the e-Commerce industry itself abound. Thus, this paper aims to delve into the problems encountered in the e-Commerce industry.
e-Commerce Problems and Issues
What distinguishes e-Commerce from other types of businesses is that transactions are mostly paperless. Information exchange is done through emails, payment systems are virtual, and transactions are completed within minutes after initiation. Thus, ensuring that all records and financial systems are secure is of prime importance.
Security. This refers to protection of the business and the consumers against scams, frauds, and hackers who attempt to break into a company's business website and direct all payments into another account other than the establishment's financial account (Merchany & Tront, 2002). Because clients also pay goods and services rendered online, there is also a threat on breaching a client's financial account because they share personal and financial information with the company. When a customer feels unsafe with a company's website, then the customer will not trust the site ("10 Barriers to e-Commerce and Their Solutions", 2012). Thus, no transaction will occur and the business loses a potential customer.
Privacy. This has become a serious problem in e-Commerce transactions as customers push for control and management of their own personal data. Very much related to problems in security, privacy issues, when compromised, could lead to a third-party company misusing a customer's personal information and misrepresenting the same customer in other business transactions. One classic example of such instance is the case filed against US Bankcorp in 1999 when t was sued for deceptive practices. Allegedly, the bank "supplied a telemarketer, MemberWorks, with sensitive customer data such as name, phone#, bank account and credit card numbers, SSN, account balances and credit limits" (Marchany & Tront, 2002). Because of the incidence, other banks and private establishments have been careful in handling customer information. Thus, customers must be vigilant when it comes to whom they share their personal information.
Crime. Personal information entered into a business establishment's system can also be used for criminal purposes, and this is one of the reasons why there are so many cases of identity theft in the United States. As a customer authenticates his or her account, hackers can also be on the lookout for personal accounts and financial records they can gain access to. Not only potential clients are at risk, but business owners as well. When hackers are able to penetrate a business' website, they can change the website's content which can be damaging to a company's image or reputation, carry out denial-of-service (DoS) attacks (Marchany & Tront, 2002) to prevent authorized users to access the site, use viruses to corrupt the files, and gain access into the company's financial system.
e-Commerce Regulations
Despite the problems experienced in the e-Commerce industry, it is still a growing market and will continue to become bigger in the coming years. Thus, the government attempts to come up with laws or decrees that regulate the online market to protect the citizens and business owner such as in the case of US Bankcorp. These laws include The Federal Trade Commission Act and The Computer Fraud and Abuse Act (Marchany & Tront, 2002), among others. With the institution of such regulatory acts, the e-Commerce industry and its loyal patrons can continually enjoy a trust-filled relationship, overcome potential barriers, and thrive in a mutually beneficial trading environment.
References
10 barriers to ecommerce and their solutions. (2012). Retrieved from http://www.voloper.com/documents/white-papers/ecommerce_white_paper.pdf
Marchany, R., & Tront, Joseph. (2002). E-commerce security issues. Retrieved from http://www.hicss.hawaii.edu/hicss_35/hicsspapers/pdfdocuments/inisc01.pdf
Lasorca, P. (2008). Copyright law for ecommerce merchants. Retrieved from http://www.practicalecommerce.com/articles/841-Copyright-Law-for-Ecommerce-Merchants
What is e-commerce. (2012). Retrieved from http://www.wisegeek.com/what-is-e-commerce.htm
