National Conference on Automation in Banks and Financial Institutions 22-23 June 2000 CSIO Chandigarh INDIACopyrights © 20...
forever. Customers have more power. Relationships arechanging, competition increasing, distribution channelsexploding, and...
National Conference on Automation in Banks and Financial Institutions 22-23 June 2000 CSIO Chandigarh INDIACopyrights © 20...
6. E-commerce Security TechnologiesIssues of security and cryptography tie in with both privacyprotection and certificatio...
National Conference on Automation in Banks and Financial Institutions 22-23 June 2000 CSIO Chandigarh INDIACopyrights © 20...
for commercial transactions. Therefore, some experience withthe new medium is a must for successful business in future.Bus...
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Seminar- E-commerce Technology for Safe money transaction over the net


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This paper mainly concentrates on technology revolution behind the transaction of money over the net. 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.

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

  1. 1. National Conference on Automation in Banks and Financial Institutions 22-23 June 2000 CSIO Chandigarh INDIACopyrights © 2005 Noorjahan Haque / Raman K. Attri 1E-commerce Technology for Safe money transaction over the netNoorjahan Haquea, Raman K. Attrib,aFaculty, Institute of Electronics & Telecommunication Engineers (IETE) ChandigarhbMember IETE / Scientist, Central Scientific Instruments Organization (CSIO) ChandigarhABSTRACTThe Buzz word E-commerce has revolutionized the way the business and money transactions used to work in the past. It is thelatest impact of software arena in the field of banking, business and purchasing. The term also refers to online stock and bondtransactions 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 revolutionbehind the transaction of money over the net. There are still doubts and questions from business and corporate users on the safetyaspects of e-commerce. The software and web technology has innovated many encryptions and secure software layering andprotocols techniques which tries to make the e-commerce transactions safer. The concept behind these techniques along-with thetechnical aspect of e-commerce and how it can be implemented in bank for money transaction is discussed in this paper. Further itdeals with safety and security issues related to e-commerce implementation in banks and business transactions.1. Evolution of E-commerce and E-businessThe industrial revolution was perhaps the biggest change thatbusinesses ever faced. It changed the very way one didbusiness, particularly with large-scale production becoming theorder of the day. Although the industrial revolution wasconfined to Europe, its impact was felt the world over. Twocenturies later, a similar revolution, but of a higher magnitudeand more global in nature, is invading businesses worldwide––arevolution called e-commerce.In any business there are three distinct groups: suppliers,customers, and the environment that may or may not haveinteractions with the manufacturer. This environment includesthe government, the judiciary, the monetary system,competition, and other countries and international bodies thatwould have a direct impact on the way one-do business.Traditionally, organizations have maintained a clearly definedinterface that separates them from the rest of the universe. Intoday’s information age, this interface is rapidly changing andis being replaced by new mechanisms that make it easier totransfer information across the boundary. The e-commerce haschanged the way the business is done.The e-commerce and e-business has evolved through a set oftechnological changes coming in picture. These evolutions areas follows:a) Internal Computerization in the company: The manualworks being done in the business segments werecomputerized to speed up the work. Then networks weresetup to share information pertaining to work. In thebusiness universe, the network first appeared within theorganization. Interactions of this network with the outsideworld were almost zero. For any data to get added to or getout of this system, manual intervention like retyping andtransportation in floppy was required.b) Electronics Data Interchange with suppliers: The nextbig step was the extension of access of this network tosuppliers. This is widely known as EDI—Electronic DataInterchange. Now one could directly place an order on hissupplier’s network without needing the intervening paperwork. One could also access information regardingavailability of stocks and raw materials at his end, and soon. One could plan better, reduce inventories, improveturnaround time, and so on. But the cost of setting up anEDI system can be prohibitive, particularly if the seller andthe suppliers are operating far apart. So very few businessescould go in for such systems.c) Internet Connectivity to End-Users: The next logical stepwould be to extend this network to the customers also. Butfor most businesses, even for the really big ones, this wasimpossible, given the spread-out nature of the endcustomer. The best that could be achieved was to extendthe network out to the distributor. The Internet has made itpossible for business to interact directly with both thesuppliers and the end-users without having to go in forheavy investments. And in the process, it re-wrote the basicrules of doing business. Anybody with a Web browser coulddirectly make a purchase from any part of the world.Similarly, anyone with a Web server could run a multi-million-dollar business without having to invest in godowns,and other distribution and retail infrastructure. Byautomating the whole process––from order taking to deliveryand the flow of information and decisions associated with itacross organizations and the end customer–– businessesare able to react faster to customer demands, and keepmarket uncertainties to the barest minimum.d) E-commerce Revolution: The services provided throughinternet connectivity and money transaction, selling andpurchasing over the net gave rise to revolution of E-commerce. E-commerce involve setting up Web sites,Establishing and automating business processes, enablingworkflow, defining escalation mechanisms––all these areneeded to get e-commerce enabled. And all this is gearedtoward giving better service to the customer.Fig 1: Typical Evolutionary Path of E-ComThe arena of E-business: In short, E-Business is the powerfulbusiness environment that is created when critical businesssystems are connected directly to customers, employees,vendors, and business partners using intranets, extranets, E-Commerce technologies, collaborative applications, and theWeb. The typical evoution path of E-commece and E-businessis shown in Fig 1. Electronic business is using innovativetechnology to build relationships and commerce globally and isthe greatest opportunity and/or threat to existing businessmodels. With the rise of the Internet and the proliferation ofelectronic commerce, sales force automation, call centers, andmobile computing, the very fabric of business has changed
  2. 2. forever. Customers have more power. Relationships arechanging, competition increasing, distribution channelsexploding, and startups are bringing giants to their knees.2. Three cases of E-Commerce1. E-commerce in Direct Point-to-point sale (Internet)2. E-commerce in Supply chain (Extranet)3. E-commerce to improve internal Business (Intranet)2.1 E-commerce at Point of SaleWeb offers complete capability for money transaction. Themodes of transaction include catalogue purchase, auction, offerand acceptance. The catalogue purchasing sites offer listing ofits entire range of products alongwith price information on theweb site. Total warehouse, stock, delivery, online procurementand order tracking is fully integrated together for efficientservices. The payment modes are from account, credit card,cash card and e-cash. Many of the web sites offering valuedservices have been applying this mode of e-commerce since along time. The credit card payment system is one of the mostpopular systems of payment, even if it has some insecurityassociated with it.2.2 E-commerce at Supply ChainThe suppliers have been integrated into the e-commercenetwork. New channels for exploiting the market have beenintroduced. It creates the most efficient market, reduce thelabor cost, and improve flow and accuracy of information. Thesuppliers can download special reports, software, catalog andprice list form the web and they can upload the tenders andrelevant queries. For suppliers such implementation hasbenefit in reducing the sale costs and creating new businessopportunities. At buyers end process efficiency is achieved andthe buyer has got larger supplier base and globalization ofprocurement can be achieved easily. Reduced purchase costsand reduced cycle time are obvious benefits.2.3 E-commerce in internal corporateWhile improving the relations and interaction out of thecompany, the internal culture has to be improved for effectiveimplementation of e-commerce. Total management, internaldirectory services, use of project management tools and puttingthe resources on-line will develop the intranet in the corporate.3. Understanding E-CommerceWeb shopping is only a small part of the e-commerce picture.The term also refers to online stock and bond transactions andbuying and downloading software without ever going near astore. In addition, e-commerce includes business-to-businessconnections that make purchasing easier for big corporations.The Internet not only changed the rules of business, but alsothe frontiers. Today, if one has a presence on the Web, then theworld is his customer.3.1 The technologies contributing in E-commerceElectronic commerce encompasses all business conducted bymeans of computer networks. The typical setup is shown in fig2. The technology development involved in creating aknowledge economy was:• Recent advances in telecommunications and computertechnologies have moved computer networks to the centerof the international economic infrastructure.• Heavy rise in Internet and the World Wide Web hastransformed global commerce by facilitatinginstantaneous, inexpensive contact among sellers, buyers,investors, advertisers and financiers anywhere in theworld.• The rapid integration of Internet and othertelecommunications-based functions into nearly everysphere of business has led to an international focus on theNew World of e-commerce.3.2 Activities contributing to Global E-commerceAmong the principal activities that can be identified ascontributing to global e-commerce are –• government services and information;• business-to-business wholesale and retail servicesand sales;• business-to consumer (and consumer-to-consumer)retail sales and transactions;• financial services and transactions;• subscription and usage-based telephony, online andInternet access services;• subscription or transaction-based informationservices and software sales;• advertising and marketing services; and3.3 Characteristics of New Economy of E-commerceThis new knowledge economy is characterized by –• an emphasis on the human mind, rather than merelyphysical automation;• being information- rather than energy intensive;• sustainability through networks, not singleorganizations;• supporting distributed rather than centralizedintelligence;• requiring multiple skills and continuous learning;• replacing lifetime employment with labor marketflexibility;• customized rather than standardized products;• being enabled by information and communicationstechnologiesWhile many companies and communities are beginning to takeadvantage of the potential of e-commerce, critical challengesremain to be overcome before its potential can be fully realizedfor the benefit of all citizens. E-Commerce, security, intranetsand extranets, supply chain automation and Web-enablementof existing applications are able to reduce the cost of doingbusiness, as well as improve communications betweencustomers and suppliers4. Technology and Developing E-businessDeveloping E-Business successfully means building reliable,scalable systems for security, collaboration, messaging, E-Commerce payments, supply-chain management, sales force,data warehousing, and customer relations - and integrating allof this with existing back-end operations. For E-business tosurvive and grow, it must deploy new E-Business technologytools to integrate new Internet-enabled enterprise withtraditional legacy systems. The bottom line is that total qualityof services should be ensured for proper implementation of e-commerce.
  3. 3. National Conference on Automation in Banks and Financial Institutions 22-23 June 2000 CSIO Chandigarh INDIACopyrights © 2005 Noorjahan Haque / Raman K. Attri 34.1 Communication InteractionAs elaborated earlier, the mode of communication is changingbig way both in and outside the company. The old way ofcorrespondence is obsolete and new way, through internet andintranet are in picture. Intra-company, inter-company, intra-community communication has been highlighted in the figuresFig 3, 4(a) and 4 (b) indicating the shift in communicationinteractions.4.2 Challenges in going E-commerce:As we saw earlier, getting into e-commerce (or as the brochuressay, getting e-commerce enabled) is not as simple as setting upa Web page with an order form. There are three big internalchallenges in "e-enabling" business. All of them have to beovercome to have a complete end-to-end e-business running.a) The first is to take your back-office processes online and toautomate your workflowb) The second challenge is to make data-sharing possibleacross disparate applications like your ERP systems, yoursupplier’s systems, and your e-commerce order-takingsystems.c) And the third is to automate your decision-makingprocess.The disparate software systems that require data to be fed in tokeep the business functioning—the subscriber database, theFA package, the MIS system, perhaps an ERP package, and adata warehouse need to be integrated and made fullyautomated. One need to ensure the smooth and automaticexchange of data across these systems.When you enter one credit-card number on the Web-basedorder form, it is automatically authenticated against the bank’scredit-card database. The bank would have also automated thetransfer of money to the vendor’s account. That’s just one part.E-commerce happens completely when this information isautomatically transferred from the bank to the vendor’saccounting package without manual intervention, and whenthis information automatically updates the inventory package,and so on.5. E-commerce Security and Money Safety IssuesSecurity is the biggest issue of E-commerce. Although Internetsecurity breaches have gotten a lot of press, most vendors andanalysts argue that transactions are actually less dangerous incyberspace than in the physical world. Thats because a greatdeal of credit card fraud is caused by retail sales employeeswho handle card numbers and every time you throw away acredit card receipt--you make yourself vulnerable to fraud. E-commerce systems remove temptation by encrypting thenumbers on a companys servers. For merchants, e-commerceis actually safer than opening a store that could be looted,burned, or flooded. The difficulty is in getting customers tobelieve that e-commerce is safe for them.Businesses have begun exploiting the Internet for commercialtransactions. Recognizing the dangers in sending confidentialinformation over an inherently insecure media, a number ofsecure data transport protocols have emerged. Minimally, theseprotocols encrypt sensitive information such as credit cardnumbers to prevent unauthorized people from capturing thedata. Some protocols even facilitate payment for merchantsthrough banking institutions.Secure e-commerce transaction has to insure protection ofassets and privacy. It should give reliable service, audit andaccountability and identification procedure. Consequently, forthese new globally technologies to advance, business andgovernment institutions must develop policies that buildgreater trust in the new transaction media. The e-commerceservice should be trustworthy. The principal elements of trustin the context of on-line commercial transactions can beclassified as follows:• Security: Confidence that information transmitted duringa transaction will arrive in uncorrupted form and will notbe improperly leaked to others; this category thusencompasses both the integrity and the confidentiality ofdata transmissions. It implies Security of datatransmissions.• Privacy: Concerns about access to and use of personalinformation obtained directly or indirectly as a result ofelectronic transactions. It implies Privacy protection.• Authenticity: Verification that the parties to atransaction, and the services rendered, are truly asrepresented. Certification authorities and Consumerprotection do it.• Non-repudiability: Assurance that a transaction will behonored as agreed, and that each party can prove, in acourt of law if necessary, the validity of the terms of thedeal.
  4. 4. 6. E-commerce Security TechnologiesIssues of security and cryptography tie in with both privacyprotection and certification, as well as with the technicaloptions for creating and validating digital signatures. A numberof countermeasures are already being taken to ensure that e-commerce is as secure as traditional forms of transaction.Some of these are discussed below6.1 EncryptionEncryption is an essential tool in providing security in thishighly-networked environment. Highly secure encryption canbe deployed fairly cheaply. It is expected that encryption will bebroadly adopted and embedded in most electroniccommunication products and applications for handlingvaluable data. Applications include protecting files from theft orunauthorized access, keeping communications secure frominterception, and facilitating secure transactions. It is the onlyway to prevent forgery and eavesdropping. The open algorithmsused in the past have been analyzed at great length and stillthere are chances of getting useful information from cyphertextanalysis and traffic analysis. The whole sole security in thiscase depends upon the secrecy of the key with whichencryption has been done. Longer keys provide the bettersecurity.Since encryption technology has been widely used in defense,so government may put some restriction in use of thistechnology. Because encryption technology is becoming sowidely available and affordable, it would be impractical forgovernments to attempt to prohibit its use altogether. It may beappropriate, however, for the government to consider certainlimits and requirements for encryption, such as restrictions onthe complexity of encryption. An important issue that arises asthe use of encryption spreads is the means and extent of lawfulaccess to cryptographic codes (or decryption keys) bygovernment agencies such as law enforcement and nationalsecurity.2.0 versions of Netscape Navigator and Microsoft InternetExplorer facilitate transactions encrypted using Secure SocketsLayer (SSL), a protocol that creates a secure connection to theserver, protecting the information as it travels over the Internet.SSL uses public key encryption, one of the strongest encryptionmethods around. A way to tell that a Web site is secured bySSL is when the URL begins with https instead of http.6.2 CryptographyCryptographic is the technique, which can also be used toguarantee integrity (i.e. that the contents of a file or messagehave not been altered), to establish the identity of a party, or tomake legal commitments. The strong crypto-system are nowavailable which use different algorithms like DES, IDEA andRSA. USA law enforce data encryption algorithm key lengths tobe limited to, say, less than 40 bits, to allow security agenciesto decrypt transmissions, preferably in real time. This is notenough for many applications.Now how to protect the data being transmitted? This is done bydoing encryption with the help of two keys. One is calledprivate key and other is called public key. DES/IDEA requiresboth parties to use same keys. Now how to exchange keys overthe insecure media. The message encrypted using receiverspublic key can be decrypted only by receivers private key. Thistechnology is used widely in Web based secure servers.6.3 Digital SignatureNow in e-commerce the issue that how one know that it isreally me? Evolving a digital signature does it. The digitalsignature is kind of message, known to me only andrepresenting me. It is encrypted using my private key andanyone can decrypt it using my public key. The reception end,it is proved hat I have encoded the message and signed it. Thistechnology makes the basis for the electronics cash. This isalso the basis for user authentication and non-repudiation.6.4 Digital CertificateJust signing on my messages is not enough. A identity has tobe assigned to the fellow using the e-commerce services. Itreflects who am I? These digital certificates are issued by sometrusted third party. A digital registry of all digital certificateholders is made. The client negotiates with the registry beforedoing business with the server. Severs have the userssignature.6.5 FireballFireball is the key component in security of network resources.Since the E-commerce is working over the net, firewalls areessential infrastructure. The firewalls are basically a softwareor set of protocols which isolate the networks and the traffics.The fireball have following three objectives:- It keeps out external threats like virus and unauthorizedaccess from external person.- It keeps internal threats escaping out, means it preventinternal sensitive data to be transmitted outside withoutauthorization. These are the biggest dangers. Because thepersons internal to the network are having opportunity,motive an means and can exploit the misguided securitypolicies which are more concerned with the externalattacks.- It prevent internal attacksFirewalls itself are not full proof security techniques. Itintroduces its own problems. Proper management anddocumentation has to be done in case of firewalls. It furtherhave poor security attitudes. Over reliance on firewall cancreate new problems like complacency of internal threats.Further the system is poor at review and update. Fire Wall isanalogous to a strong lock at the shop, but can not preventrobbery like credit card frauds.7 Safe Money Transaction TechnologiesThe technology providers have been continuously making newways of payment and safe money transaction over the net.There are three most popular technologies for payments in thee-commerce and e-business arena.1. Credit Cards2. Electronics Cash3. Electronics Cheques7.1 Credit Card Money Transaction ModeWhen you pay with a credit card, a set of secure processesensure that the payment reaches the merchant. Plastic moneywas a boon for people on the move, as they never again neededto carry hard cash. No e-commerce system can guarantee 100-percent protection for your credit card, but youre less likely toget your pocket picked online than in a real store.The credit card system has been an internationally acceptedmode of payment. It has been tried to make it more secure.Browser makers and credit card companies are promoting anadditional security standard called Secure ElectronicTransactions (SET). SET encodes the credit card numbers thatsit on vendors servers so that only banks and credit cardcompanies can read the numbers. This standard providesconfidentiality of payment and ordering information. It alsoprovides integrity of all the transmitted data. It also provide theauthentication that card holder is the legitimate user of thecard. It facilitates and encourage interoperability acrosssoftware and network providers. It further provideauthentication that a vendor can accept bankcard paymentthrough its relationship with a financial institution.The disadvantages of the credit card is that a third partyapproval like bank is involved and further its charges come intopicture. The credit card is generally not accepted for micro-
  5. 5. National Conference on Automation in Banks and Financial Institutions 22-23 June 2000 CSIO Chandigarh INDIACopyrights © 2005 Noorjahan Haque / Raman K. Attri 5payments. The biggest disadvantages of credit card is the highsecurity risk. The credit card number can be stolen and hencea huge damage can be possible. It creates the need for strongauthentication like private keys and digital signature to avoidand fraud.7.2 Credit card at Point of Sale CounterThe standard method of credit-card authentication worksthrough a point-of-sale terminal, or POS. When you give yourcredit card to the merchant, he swipes it through the POS andenters the amount to be billed. The POS dials to the acquiringbank over a telephone line and transmits this data. Theacquiring bank immediately routes the information to the card-issuing bank, requesting for an authorization. The credit-cardnumber identifies the type of credit card, issuing bank, date ofexpiry, and the cardholder’s account number. The issuing bankchecks the credit cardholder’s account, verifies the credit limitand generates an authorization code. This is then sent to theacquiring bank, which in turn sends an approval or denial codeto the merchant’s POS terminal. The POS prints out a sale draftthat has to be signed by the customer.The merchant later reviews all sales drafts, and sends thecodes on them to the acquiring bank through the POS. Theacquiring bank sends a request to the issuing banks, whichdeduct an interchange fee from the acquiring bank, and passon the payment. The acquiring bank then deposits the amountto the merchant’s account after deducting a transaction fee. It’sa great solution for merchants who process a single transactionat a time, such as restaurants, departmental stores, etc.However, for those who have to do it in bulk, it poses a bigproblem. So what is the solution? Taking these the transactionsonline.7.3 Web Based Online-Credit Card Payment SystemOnline transactions have become a part of normal routine inmany countries, and India is fast catching up. The mostcommon method also uses a security protocol SSL (securesockets layer). To process credit card transactions online in realtime, some software like CyberCash that must be installed bothby the consumer and the merchant. When a web store is putonline, the real-time credit card transaction processing worksas follows:1. A consumer places an order on your Web store usingSecure Socket Layer (SSL) encryption by clicking on buybutton.2. CyberCash software sends a request to the merchant. Themerchant cybercash ask for credit card details. Theconsumers payment information including credit cardnumber is sent to CyberCash in encrypted form, thenforwarded to the merchant bank, Payment Processing Inc(cybercash website).3. Payment Processing Inc (cybercash) take out the creditcard details and transfers the payment information to thecardholders (consumers) bank for authorization.4. The cardholders bank sends an authorization to your Webstore by way of the merchant bank and payment-processing center.5. An order confirmation is sent to the consumer.The above process takes approximately 10-20 seconds tocomplete. If the transaction is approved, funds are usuallytransferred to your (merchant) bank account within 48-72hours.Other than SET, A number of micro-payment and smart-cardtechnology trials around the world, but these solutions haventyet made it to the mainstream consumer. Over the last severalyears, a number of "virtual cash" alternatives have come andgone, but none of them have achieved widespread adoption.7.4 Digital CurrencyDigital currency is very similar in concept and use as theordinary cash. This is basically a smart card technology meantboth for major and micropayments. Use of smart cardtechnology increases security. It further provide security if thedigital cash currency is stolen, it can be used once only andthen it become invalidated. This is relatively is a new conceptand it will take time to get popular in the customers. Thebiggest requirements is that smart card reader hardware isneeded to available to users and merchant.Some of the technologies providers have devised its own digitalcurrency. The most popular are Mondex. Digicash, Mondexworks on smart card technology. The smart card reader readsthe smart card inserted in the cartridge and sends the accountinformation from the card to the issuing bank over the internetand after validation the amount being paid online is deductedform the account of the persons account. It can be used atATM, Special phone, Internet. It is supported by MastercardTransaction and purchasing. Similarly Visacash is alsoavailable to be used for online applications.The Digicash is in forms of some digital coins stored in specialfolder in the hard disk. These are basically some encodedsoftware modules. Each module or coin has uniqueidentification number. Each coin representing some particularamount. It can be sent over the network and can be e-mailed aswell. There are 6 banks worldwide which accept such cash. Youshould have an account at the accepting bank. Now the smartcard version of these coins is also available. While a buyer isintending to purchase anything over the net, it sends the cointo the seller. Sellers site sends request for verification and thevalidity of coin to the buyers bank. The buyers bank verify itwith issuing institutions and sends confirmation to seller. Thetransaction with the buyer is completed upon confirmation. Thespecified amount coin is transferred to sellers bank fordeposition or the seller just like ordinary cash can furtherspend it. The transaction model is depicted in the figure below.The technique is not so popular yet and is available in selectedbanks and merchants only.7.5 Electronics ChequesSince the cheques are generally used in public, this mode ofmoney transaction is expected to be quite popular. Thistechnique is parallel to the debit card. This is potentiallycheaper for the retailer since the third party payment or fees isnot involved unlike credit card transaction. It is basically a verysimple technology. So this is somwhat behind othertechnologies in development.7.6 Hybrid Money Payment Mode -CybercashThe Cybercash is getting wide popularity among the worldleader and merchants and users globally. It facilitate hybridmode of payment which include credit card payment systemworking on SET protocols and Cybercoin system for paymentfrom $0.25 to $10. It also support electronics chequesproviding pay now facility for interactive billing applicationsjust as ordinary bill services. The cybercash interface withmany leading financial institutions.In India, the technology has not much introduced yet forimplementation of web based money transaction. Only creditcard system at POS terminal has become viable so far. Smartcard technologies and cybercash system has yet to get into thepublic and it will be possible only with wide spread use of e-commerce and internet in the business arena.8 ConclusionsElectronic commerce - especially online shopping - createsradical changes in the value chain of various businesses. Thesechanges emerged not only because of the new technology butalso because of the willingness of customers to use the Internet
  6. 6. for commercial transactions. Therefore, some experience withthe new medium is a must for successful business in future.Businesses have to find creative solutions how to deal with thespreading commercial use of the Internet.The security of money transaction over the net has to beinsured either by proper use of advance technology or by use ofglobal legal procedures enforcement. Cyber laws are at anascent stage and the technology is far too advanced forcomplete control. Rules should be technology-neutral (theyshould neither require nor assume a particular technology) andforward-looking (they should not hinder the use or developmentof technologies in the future). Existing rules should be modifiedand new rules should be adopted only as necessary orsubstantially desirable to support the use of electronictechnologies. The process should involve the high-techcommercial sector, as well as businesses that have not yetmoved online for money transaction.The Internet has raised new issues concerning confidentiality ofrecords in terms of access to personal details, jurisdiction overstorage and use of data, and protection of financial informationdisclosed in electronic transactions. The e-marketplacedemands a revision of national laws with a global perspective.The big issue facing e-trade is the absence of a clear-cutregulatory framework—worldwide. No wonder businessmen andconsumers lack confidence in digital transactions. India, withits complex regulatory framework, needs to define transparentrules for e-commerce to keep pace with global growth.A number of issues—taxation, tariffs, data protection,authentication, privacy and copyrights—need to be reviewedfrom the e-perspective. While trading on the Net, the sellerneeds to be sure that his intellectual property rights areprotected and the buyers need to be sure of the authenticity ofthe products they buy. Privacy is another important issue onthe Net. Organizations want to acquire all possible data abouttheir customers/potential customers to unearth valuablerelationships. E-transactions become an easy source for suchpersonal data. Should an organization share the personalinformation that it collected, beyond the extent that it wascollected for?References1. Trust in Cyberspace, Committee on Information SystemsTrustworthiness, National Research Council (1999)2. Risks and Challenges for Retailers: The Value ChainTransformation. A European Perspective, RomanBrandtweiner, Proceedings of Association of InformationSystems, Americas Conference (AIS98), S. 277-289, (1998)3. The Challenges of Law in Cyberspace - Fostering theGrowth and Safety of E-Commerce, FTC CommissionerMozelle W. Thompson , ( 1999)4. E-Commerce Security: Weak Links, Best Defenses, AnupK. Ghosh, John Wiley & Sons (1998)