E-commerce poses risks such as client threats from viruses and trojans, server threats from data modification, and communication channel threats from sniffers. Technical attacks include denial of service and brute force attacks, while non-technical attacks include phishing and social engineering. Several cases of e-commerce fraud are described, such as individuals being cheated by false promises of prizes, exploitation of easy return policies, and investment scams. Suggestions to prevent fraud include verifying companies and offers, checking for complaints online, and being wary of promises of easy money.

1. RISK AND THREATS INVOLVED IN E-COMMERCE.
PRESENTED BY:
RAVI DOSHI
KINJAL SHAH
RACHNA MISHRA
FIRDAUS KHAN
CHIRANJEEV NIMBKAR

2. INTRODUCTION:
 Buying and selling of products and services over electronic systems.
 Wide variety of e-commerce conducted:
• electronic funds transfer.
• Internet marketing.
• online transaction processing .
• electronic data interchange (EDI).
• inventory management systems.
• automated data collection systems.
 E-Commerce system must meet four integral requirements:
• privacy – information exchanged must be kept from unauthorized parties.
• integrity – the exchanged information must not be altered or tampered with.
• authentication – both sender and recipient must prove their identities to each other.
• non-repudiation – proof is required that the exchanged information was indeed received.

3. Types of threats in E-COMMERCE:
 Client Threats:
• Virus
• Trojan horse
• Worm
 Server Threats:
• Modification on server data.
• Modification of incoming data.
• Bugs in server software.
 Communication channel threats:
• Sniffer program
• Backdoor
• Spoofing

4. ATTACKS:
 Technical attacks:
• Denial of Service Attacks.
• Teardrop Attack.
• Distributed Denial-of-Service Attacks.
• Brute Force Attacks.
 Non-Technical Attacks:
• Phishing Attacks.
• Social Engineering.

5. Dealsdilki E-commerce portal directors arrested in cheating
case (Jan 31, 2017):
 Two directors of a Delhi-based e-commerce portal arrested for cheating a senior zonal head
manager for Rs. 5.12 lakhs.
 Received e-mail from sales@dealsdilki.com that he won a 'Honda Amaze' car for doing online
shopping from their website.
 Promised him a delivery of ‘HONDA AMAZE’ car as a lucky draw winner.
 Asked him to pay only for the registration and delivery charges for receiving the car. Believing it
to be true, initially he paid Rs 2499.
 Lady tele-callers made him to transfer money for charges like insurance, colour, handling
charges, facilitation fee, etc.
 Paid approximately Rs. 3.18 lakhs till then.
 Phone calls to reclaim the already paid amount and paid more Rs. 1.93 lakhs.
 Later realised that he was cheated and lodged a complaint.

6. PREVENTION and SUGGESTION:
 Verification to be done by third party.
 Not everything which is displayed online can be true.
 Not so easy to get a car over a phone call.
 He should have verified the mail that he received initially.
 Check with other people , have they received same type of email or not.

7. How Flipkart got conned by a Punjab gang via ‘easy return
policy(Mar 02, 2016):
 A gang here exploited the easy-return policy.
 Cheat the company of at least Rs 25 lakh.
 Created fake email IDs and booked orders.
 They would order only costly mobile phones.
 When these were delivered, would call up the company to complain about
quality issues.
 To the representatives sent to collect these handsets, they would hand
over fake mobile phones in the box.
 The money paid through different banks would come back to their
accounts before the goods reached the dealer.

8. How flipkart overcome this fraud?
 Whenever a customer contacts us to return any item, we credit the money into
his account immediately and check the item later when it gets to us within a
week. In this case, a number of complaints from the same area prompted them
to call the cops.
Our take on the same:
 Changes in the return policy.
 Check the product before returning the money.
 Limited returns to be made by per customer in a month.

9. Social Trade Biz Scam
 Social Trade Biz is an India based Social Network Exchange company which emerged
a few months back and advertised to the people to make money online easily without
any efforts.
 sign up for free
 pay them Rs.5,750 to Rs.57,500 depending upon packages.
 Good ROI.(Return on investment)
 Logic-More social activities = more money.
 So far the firm defrauded over 6.5 lakh people collecting around Rs 3,700
crore,

10. Lessons to Learn from Social Trade Biz Scam
 There is no easy or free money available anywhere on the Internet.
 Initially, the company may pay you few bucks, but you cannot take your complete
payment from them. It is not difficult for them to pay Rs.5,000 for 3 months from
your Rs.50,000 investment. Think that they profited remaining Rs.35,000, will not
pay you after 3 months and will shut down their company.
 Verification to be done by third party
 Not everything which is displayed online can be true

11. Man who ripped off Flipkart arrested (Oct 2, 2015)
 Duped E- Commerce giant Flipkart by stealing valuable parts of electronic
goods.
 Veeraraghava Reddy used to give fake addresses while placing orders
online.
 Returning gadget claiming it was faulty.
 The company reportedly suffered a loss of Rs seven lakh.

12. SUGGESTIONS:
 Before shipping the product, take note of the product’s serial number or
take a picture of any such unique identifying features. This will come in
handy if the buyer has returned a different/used piece.
 Real time response on the products that are returned.
 Taking strict action against such scam at initial level.

13. Anubhav Mittal, the techie who allegedly duped lakhs of
people into investing 3,700 crore in his Noida start-up.
 The firm promised to pay 'clients' Rs. 5 every time they clicked on a link that one of
the many web portals that his firm sent them. But for this they had to invest a fixed
amount to be eligible.
 The company told them that it was still making a profit of Re 1 on the
clicks. However, the links sent to them were fake.
 The STF found over 6.5 lakh people had deposited over Rs. 3,726 crore in
the company's accounts using over 9 lakh IDs. That is an average
investment of Rs. 57,000.
 The firm wasn't really making any money but paying its investors out of their own
money.

14. SUGGESTIONS:
 Spot imposters. Scammers often pretend to be someone you trust, don’t
send money or give out personal information in response to an unexpected
request .
 Do online searches. Type a company or product name into your favorite
search engine with words like “review,” “complaint” or “scam.”
 Don’t pay upfront for a promise. Someone might ask you to pay in
advance for things like you’ve won a prize, but first you have to pay taxes
or fees. If you do, they will take the money and disappear.
 Sign up for free scam alerts from the FTC at ftc.gov/scams. Get the
latest tips and advice about scams sent right to your inbox.

18. CONCLUSION:

19. REFFERENCES:
• https://www.worldhab.com/social-trade-biz-reviews-scams-news/
• http://timesofindia.indiatimes.com/city/hyderabad/Man-who-ripped-off-Flipkart-
arrested/articleshow/49190108.cms
• http://www.ndtv.com/india-news/online-scam-noida-techie-duped-lakhs-of-3-700-
crore-1655736
• http://economictimes.indiatimes.com/news/politics-and-nation/dealsdilki-e-
commerce-portal-directors-arrested-in-cheating-case/articleshow/56896892.cms
• http://www.hindustantimes.com/punjab/punjab-gang-dupes-flipkart-of-rs-25-lakh-
figure-may-hit-crore-cops/story-GtM2sXj5crHjkMmxJvUShK.html
• http://timesofindia.indiatimes.com/city/delhi/Engineer-among-3-held-for-e-
commerce-fraud/articleshow/46857094.cms
• http://zeenews.india.com/mobiles/beware-its-a-scam-xiaomi-redmi-3s-32gb-at-just-rs-
599-on-amazon_1921658.html
• http://webscience.ie/blog/2010/security-issues-in-e-commerce/