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E-commerce Technology for Safe money transaction over the net
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E-commerce Technology for Safe money transaction over the net

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The Buzz word E-commerce has revolutionized the way the business and money transactions used to work in the past. It is the latest impact of software arena in the field of banking, business and ...

The Buzz word E-commerce has revolutionized the way the business and money transactions used to work in the past. It is the latest impact of software arena in the field of banking, business and purchasing. The term also refers to online stock and bond transactions and buying and downloading software without ever going near a store. In addition, e-commerce includes business-to-business connections that make purchasing easier for big corporations. This paper mainly concentrates on technology revolution behind the transaction of money over the net. There are still doubts and questions from business and corporate users on the safety aspects of e-commerce. The software and web technology has innovated many encryptions and secure software layering and protocols techniques which tries to make the e-commerce transactions safer. The concept behind these techniques along-with the technical aspect of e-commerce and how it can be implemented in bank for money transaction is discussed in this paper. Further it deals with safety and security issues related to e-commerce implementation in banks and business transactions.

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E-commerce Technology for Safe money transaction over the net E-commerce Technology for Safe money transaction over the net Presentation Transcript

  • E-commerce Technology for Safe Money Transaction Over the net y Presented and Published b National Conference on Automation in Banks and Financial Institutions 22-23 June 2000 organized by IETE Chandigarh, held at CSIO ChandigarhPresenterNoorjahan HaqueFaculty, Information technologyInstitute of Electronics & Telecommunication Engineers (IETE)Chandigarh Co-Author Raman K. Attri Member IETE / Scientist, Central Scientific Instruments Organization (CSIO) Chandigarh Copyrights © 2000 Neeru Haque / R. K. Attri
  • AgendaEvolution of E-commercefeatures of E-CommerceTechnology behind E-comMoney Safety issues and measures Copyrights © 2000 Neeru Haque / R. K. Attri
  • Meaning of E-commerceE commerceE-commerce stands for every kind of money transaction transaction,selling, purchasing or exchange of services or productsover the InternetWeb shopping is only a small part of the e-commercepicture. The term also refers to online stock and bondtransactions and buying and downloading softwarewithout ever going near a store.In addition, e-commerce includes business-to-businessconnections that make purchasing easier f i h k h i i for bi bigcorporations. Copyrights © 2000 Neeru Haque / R. K. Attri View slide
  • Evolution of E-CommerceThe e-commerce and e-business has evolved through a setof technological changes coming in pictureInternal Computerization in the company(Computerization and internal Networking with no outerworld interaction)Electronics Data Interchange withsuppliers(Extension of Internal network to suppliers toaccess company data base)Internet Connectivity to End Users (Extension of End-Usersexternal network to end users)E-commerce Revolution (money transaction, selling y gand purchasing over the internet) Copyrights © 2000 Neeru Haque / R. K. Attri View slide
  • Typical Evolutionary Path of E-Com Too clumsy E-mail usage Sophisticated Company Wide Simple E-mail E-mail System E-mail Need employee info Little return on investment Simple Web ignored Dynamic/interactive Secure info to Sophisticated Static p brochure b h Web it W b site Trading T di partners t Web sites Need to update info Need partner and Difficult to maintain security info Meet internal DemandsBasic Internal info Little used Web maintenance Key Internal Back office on Intranet System Database on Internet system linked Improved internal Need back Need product info Customer functionality y office info info Simple On-line Few sales Customers Stock control , Full Catalogue Sales Personalized shipment tracking Want to keep customers Reduced cost improved efficiency Next Generation E-business Copyrights © 2000 Neeru Haque / R. K. Attri
  • Technologies contributing in E-com• Recent advances in telecommunications and computer technologies h h l i have moved computer networks to the center of the d k h f h international economic infrastructure.• Heavy rise in Internet and the World Wide Web has transformed global commerce b f d l b l by f ili i facilitating iinstantaneous, inexpensive contact among sellers, buyers, investors, advertisers and financiers anywhere in the world.• The Th rapidid integration i t ti of f Internet I t t andd other th telecommunications-based functions into nearly every sphere of business has led to an international focus on the New World of e- commerce. commerce Copyrights © 2000 Neeru Haque / R. K. Attri
  • E-commerce Setup Electronic commerce encompasses all business conducted b means of computer networks d d by f k Server ISP Back Office links Internet Back Client ISP Bone PCMy LAN Net Total Quality of service Copyrights © 2000 Neeru Haque / R. K. Attri
  • Business Communication: Old Way Company A POST FAX Proprietary Data Comm Company B (EDI/VANs Copyrights © 2000 Neeru Haque / R. K. Attri
  • Challenges in going E-commerceGetting into e-commerce is not as simple as setting up a Web page e commercewith an order form.There are three big internal challenges in "e-enabling" business. All ofthem have to be overcome to have a complete end-to-end e-business end to end e businessrunning.a)The first is to take your back-office processes online and to automateyour workflowb)The second challenge is to make data-sharing possible acrossdisparate applications like your ERP systems, your supplier’s systems,and your e-commerce order-taking systems systems.c) Third is to automate your decision-making process. Copyrights © 2000 Neeru Haque / R. K. Attri
  • Impacts of E-CommerceElectronic business is using innovative technology to buildrelationships and commerce globally and is the greatestopportunity and/or threat to existing business modelsThe e commerce has changed the way the business is done e-commerceThe mode of communication is changing big way both inand outside the company. The old way of correspondenceis obsoleting and new way, through internet and intranetare in picture. Copyrights © 2000 Neeru Haque / R. K. Attri
  • Business Communication: Internet Way Internet Server Company A •Web Wb •E-mail etc Company XFAX/Post/point to point(to known location) Company B Copyrights © 2000 Neeru Haque / R. K. Attri
  • Business Communication: Intranet Way Company X Company A Company B Community of Trust FAX/Post/point to point (to known location) Internet Server I S Company X •Web •E-mail etc Copyrights © 2000 Neeru Haque / R. K. Attri
  • Elements of Trustworthy E-commerce Services The i i l l Th principal elements of t t t f trustworthy i th context of on-line th in the t t f li commercial transactions are:• Security: Information transmitted during a transaction will arrive i uncorrupted f i in t d form and will not b i d ill t be improperly l k d t l leaked to others. Privacy: Protection to access and use of personal information obtained as a result of electronic t bt i d lt f l t i transactions. ti Authenticity: Verification that the parties to a transaction, and the services rendered, are truly as represented. Non-repudiability: Assurance that a transaction will be honored as agreed and that each party can prove the validity of the terms of the deal in the court. Copyrights © 2000 Neeru Haque / R. K. Attri
  • E-commerce Security IssuesSecurity is the biggest issue of E commerce E-commerce.Secure e-commerce transaction has to insure protection ofassets and privacy. p yIt should give reliable service, audit and accountability andidentification procedureBusiness and government i i i i d institutions must d l developpolicies that build greater trust in the new transactionmedia Copyrights © 2000 Neeru Haque / R. K. Attri
  • E-commerce Security Technologies(To be used in combination to ensure security) Encryption (coding of messages) Cryptography (data transmission security by encryption of contents of message) f t t f ) Digital Signature (To prove that its really genuine user - Its really me!) ts ea y e!) Digital Certificate (user authentic identity-who am I?) Firewall ( network and traffic watch to avoid unauthorized access of the network resources) Copyrights © 2000 Neeru Haque / R. K. Attri
  • EncryptionCoding the transmitted message or credit card number with the help ofsome algorithm and a encryption key.Encryption provide security in highly-networked environmentApplications include protecting files from theft or unauthorized access,keeping communications secure from interception, and facilitatingsecure transactionsHighly secure encryption can be deployed fairly cheaply2.0 versions of Netscape Navigator and Microsoft Internet Explorerfacilitate transactions encrypted using Secure Sockets Layer (SSL), aprotocol that creates a secure connection to the server, protecting theinformation as it travels over the InternetWhen Web site is secured by SSL, the URL begins with https instead ofhttp. Copyrights © 2000 Neeru Haque / R. K. Attri
  • CryptographyEncrypting the contents with one key and decrypting withanother key. One is called private key and other is calledpublic key. The message encrypted using receivers publickey can be decrypted only by receivers private keyIt is used to guarantee integrity (i.e. that the contents of afile or message have not been altered) to establish the altered),identity of a party, or to make legal commitments.The strong crypto-system are now available which usedifferent algorithms like DES, IDEA and RSA Copyrights © 2000 Neeru Haque / R. K. Attri
  • Digital SignatureNow in e-commerce the issue that how one know thatit is really me? Evolving a digital signature does it.The digital signature is kind of message, known to meonly and representing me. It is encrypted using myprivate key and anyone can decrypt it using my publickey.The reception end, i i proved h I h h i d it is d hat have encoded the d d hmessage and signed it.This technology makes the basis for the electronicscash. This is also the basis for user authentication andnon-repudiation. Copyrights © 2000 Neeru Haque / R. K. Attri
  • Digital CertificateJust signing on my messages is not enough A identity enough.has to be assigned to the fellow using the e-commerceservices. It reflects who am I? This is digital signature.These digital certificates are issued by some trustedthird party.A di it l registry of all di it l certificate h ld digital i t f ll digital tifi t holders i ismade.The client negotiates with the registry before doing g g y gbusiness with the server. Severs have the userssignature Copyrights © 2000 Neeru Haque / R. K. Attri
  • FireWallThe firewalls are basically a software or set ofprotocols which isolate the networks and the trafficsThe fireball have following three objectives:-It keeps out external threats like virus andunauthorized access from external person.-it pre ent internal sensiti e data to be transmitted it prevent sensitiveoutside without authorization.-It prevent internal attacks p Firewalls itself are not full proof security techniques Copyrights © 2000 Neeru Haque / R. K. Attri
  • Safe Money Transaction TechnologiesCredit Cards (for purchasing at Point of sale counter using card p g greader and web based on-line transaction on credit. Instant validationof account and deduction after the sale)Smart Card Digital Currency (In form of smart card for allkinds of payments an on the instant deduction of money from theaccount)Electronics ChEl i Cheques (pre-issued software modules eachrepresenting certain cash value, to be exchanged over the internet inplace of any money or smart card number)Hybrid Mode (includes major and minor payment by smart card,coins, cheques etc--all in one) Copyrights © 2000 Neeru Haque / R. K. Attri
  • Credit CardInternationally accepted mode of payment in two forms Credit card at Point of Sale Counter (POS terminal reads the card details and verify it over phone lines from the acquiring bank and credit card issuing bank) Web Based Online-Credit Card Payment System (validation over the net through servers)SET protocol encodes the credit card numbers onvendors servers so that only banks and credit cardcompanies can read itThe disadvantages of the credit card is that a third partyapproval like bank and its fees is involved Copyrights © 2000 Neeru Haque / R. K. Attri
  • Digital CurrencyThis is basically two mode meant both for major and micro-payments :a smart card technologydigital coinsThe smart card reader reads the smart card inserted in the smart cardreader hardware cartridge and sends the account information from thecard to the the issuing bank over the internet and after validation theamount being paid online is deducted form the account of the persons gp paccount.One more option is digital coins in form of software modules havingunique identification number and particular amount. Can be submitted q pover the net for purchasing. Retailer can further use it for his ownpurpose and recycle it Copyrights © 2000 Neeru Haque / R. K. Attri
  • Electronics ChequesThese are pre-issued cards replacing cheque Each pre issued cheque.card module represent some predefined cash amount.It is to be submitted where purchasing is being done.No need of validation and third party involvementunlike credit card transactions.Cheaper as third part fees is not in ol ed party involved. Since the cheques are generally used in public, thismode of money transaction is expected to be quite y p qpopular. Copyrights © 2000 Neeru Haque / R. K. Attri
  • Hybrid Mode -CybercashThe Cybercash i getting wide popularity among the worldTh C b h is i id l i h ldleader banks, merchants and users globally. The cybercashinterface with many leading financial institutions. y gIt facilitate hybrid mode of payment which include creditcard payment system working on SET protocols andCybercoin system f payment fC b i t for t from $0 25 t $10 $0.25 to $10.It also support electronics cheques providing pay nowfacility for interactive billing applications. y g pp Copyrights © 2000 Neeru Haque / R. K. Attri
  • The arena of E-businessE-Business is the powerful business environment that iscreated when critical business systems are connecteddirectly to customers, employees, vendors, and businesspartners using intranets, extranets, E-Commerce E Commercetechnologies, collaborative applications, and the Web.Developing E-Business successfully means buildingreliable, scalable systems f li bl l bl for security, collaboration, i ll b imessaging, E-Commerce payments, supply-chainmanagement, sales force, data warehousing, and customer g , , g,relations - and integrating all of this with existing back-endoperations Copyrights © 2000 Neeru Haque / R. K. Attri
  • About the authorNoor Jahan Haque earned her Masters in Information technologyin 1999. She served at IETE as associate faculty from 2000-2001.neeruhaque2000@yahoo.com q yRaman K. Attri, Masters in Technology (Applied Electronics)served as senior scientist at CSIO Chandigarh from 1995-2005. His 1995 2005.specialization is in Instrumentation systems. rkattri@rediffmail.com Copyrights © 2000 Neeru Haque / R. K. Attri