Methods Used to Protect E-commerce Systems

22.1.2014 Benjamin Gubler
For any ecommerce venture to be successful, factors such as customers, the business model, the product, investors, the team behind the business as well as security and storage of data must all be put into consideration. Data security is quite relevant given that a number of high profile attacks by hackers have actually resulted in the failure of some of the most popular e-commerce websites, misuse of customer credit card numbers and employee impersonation. As such, the issue of security is always top on the list of priorities of e-commerce business people.

The most effective mode of data and information protection is encryption; a method that encodes data to enable its secure transmission through the Internet. This is mainly by protecting data at the most basic level by inhibiting other individuals reading it. Similarly, in case the data is intercepted and one is able to manipulate the user identification system, the data will appear gibberish to them since they will not have a mode of decoding it.

With the use of encryption technologies, e-commerce business people can essentially limit any form of unauthorized data forwarding and transmission, establish user and abuser identity and verify data integrity while ensuring that users are accountable for any data they transmit.

Another way used to protect data in e-commerce is the use of an XML data exchange framework; a method used to interchange data between customers and business people through a special e-commerce system. In this method, e-mail messages are embedded with XML data and sent to traders via an SMTP protocol. The message is further retrieved from the server by a POP3 protocol and changed to data that can be recognized easily e-commerce systems in place thus enabling the exchange of data to be asynchronous.

While e-commerce merchants put measures in place to prevent instances of fraud, it is extremely important that they realise that the issue of internal fraud does exist and they should thus pay particular attention to the internal controls so as to discourage and detect any instance of internal fraud.

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