The idea of shopping online is both exciting and frightening. With online commerce you can buy products or services from merchants almost anywhere in the world. No one has to be minding the store -- you can shop in the middle of the night whenever you get the urge. But at the same time, shopping over the Internet isn't exactly for the faint of heart, either! You need to consider all sorts of security issues so that your credit card number doesn't end up in the hands of thieves.Online commerce security basics
No matter where you shop -- at your local grocery store, through a mail-order catalog, or over the Internet -- several characteristics are common to all to all the different types of shopping. The customer selects a product, pays the merchant, and then the product becomes the property of the buyer. What's essential here is that there is a two-way exchange of property in the transaction. The buyer exchanges money (or its equivalent) for goods or services.
A matter of trust
At onetime, most merchants and customers knew each other. If you sent little Johnny down to the corner market with a list of goods you wanted, the grocer would put together your order and send it back to you. You trusted the grocer to send what you wanted and the grocer trusted you to pay your bill.
Today, of course, the world has changed. Few people shop at the corner grocery store -- you're far more likely to shop at a huge store where no one knows you. If you want to buy something on credit, you probably use a credit card issued by a large bank The world commerce has become more impersonal and less based on individual trust.
Buying from an online merchant on the Internet, however, does require an awful lot of trust. Consider the following points:
When you buy online,you have to trust that the merchant is reputable and not just someone who's trying to get your credit card number.
Since you can't personally see and feel the products or services you buy online, you have to trust that themerchant is telling the truth about the quality of the items.
The merchant has to trust that it will get paid for what it delivers.
Finally, both parties have to trust that the transaction is safe and secure.
Let's take a quick general look at these items. Trusting the merchantAnyone can create an impressive Web site. In many ways, the Web is a great equaliser. A small one-room operation can look just as impressive as the largest corporate entity on the Web. Solely from looking at a Web site, it's difficult to discern whether Andy's Computer Mega-Mall is really the "world's largest computer discounter" or simply a one-man operation Andy runs in his spare time.So how are you supposed to know who you can trust? How can you be sure a merchant is reputable and not a crook who wants to spread your credit card number around the world faster than you can blink?
One solution to establishing identities on the Internet is through the use of certificates-digital identity signatures that confirm aparty's identity. If the certificate is valid, the identity is confirmed. Several Internet Certificate Authorities such as VeriSign (http: //www. verisign.com), provide these types of digital IDs.
Of course, even if an online merchant has a certificate, you still have no assurance that the merchandise is described accurately. The backing of your credit card company can help in this situation. Most credit cards include some form of purchase protection -- if the merchandise turns out to be garbage, your credit card company will probably stand behind you and not charge your account.
Trusting the payment
Just as you want assurances that you can trust the online merchant, the merchant needs assurances that he'll be paid for his products or services. Of course, there are many different ways to pay for a purchase. Cash is one method of paying for a purchase, but it's difficult to pay cash for an online purchase. Buying on credit-setting up an account with the vendor-isn't practical in most cases,either. Instead, an electronic method of making payments is needed.
Electronic money solves many of the problems of online commerce. The merchant receives his funds, and the customer obtains his desired products while payment is sent securely to the vendor. One of the companies providing this secure form of payment is DigiCash (http: //www.digicash. com). Electronic money goes beyond simply enabling you to make online purchases. Generally most forms of electronic online payment also protect your privacy and make shopping online less subject to abusive snooping, too.
Trusting the transaction
Both parties to an online transaction want the transaction to be secure. They need to be able to trust that any documents or data haven't been altered, and they need to be certain that confidential information-such as credit card numbers- remains confidential.
Web sites can use special protocols such as Secure Sockets Layer (SSL) or Secure H77"P (S-HTTP) to ensure the security of online transactions. Thesespecial protocols use encryption to create secure Web sites so that any messages you exchange with a secure Web site can't be viewed or modified by third parties. Netscape was the original developer of SSL, but even Microsoft supports SSL.
Digital IDs
Unless you know a local merchant well, you probably use some sort of ID for almost any non-cash transaction. You may have a check cashing card, a driver's licence, or some other sort of photo ID that identifies you and lets a merchant know that you're the owner of the checking account or credit card you want to use to make your purchase.
Likewise, if you want factory-authorised service on a product, you probably look for certain pieces of identification from the merchant. For example, you probably wouldn't expect that your local Chevy dealer would do warranty work on your new Ford.
Digital IDs perform a similar task to these other forms of ID in the online world. They provide the security and assurance that people are really who they claim to be.Digital IDs protect you in several ways:
When you have a digital ID, no one else can pretend to be you. If you've given people your digital ID, they can verify your identity, and they can be certain that messages without a valid digital ID aren't from you. When a vendor uses a digital ID, you can be certain that no one has modified any messages or files the vendor has sent you. If you trust the vendor, you can trust the messages and files. Digital ID can also automate system and application updates. If you've told your computer to accept items from a particular digital ID, you won't have to verify each update. Your system can even automatically verify that the digital ID is still valid. Digital IDs are also called certificates. You can find out more about certificates by visiting http://www.microsoft.com/ie/ie40/features/sec-certificates.htm.If you'd like to obtain a free trial digital ID, click the Find out how link to display the Web page. A free class I digital ID can positivelyidentify you when you're sending messages, or make it possible for you to receive encrypted messages that third parties can't read. Currently two companies, VeriSign and BelSign NV-SA, provide these types of digital IDs.
Digital IDs and certificates aren't simply for personal identification. The VeriSign Website, http://www.verisign.com, and the BelSign NV-SA Website, http://www.belsign.be/en/, provide information on other types of certificates. For example, at the VeriSign Web site you'll also find information on Server IDs (certificates that help provide for secure online commerce) and Secure Electronic Transactions (SET).
Obtaining your own digital ID isn't absolutely necessary, but carrying a photo ID might not be absolutely necessary when you go shopping at the mall, either. Both, however, are a good idea.
Electronic money
Can you think of the one important characteristic common to all traditional forms of money? Let's make it easier on you. This same characteristic makes those traditionalforms of money virtually useless for online commerce.
Clearly this has nothing to do with the colour or material used to create money. But there is a very important physical characteristic of money that makes it hard to use for certain types of transactions. Do you give up? Well, consider this-money is considered useful through its physical presence. If you want to buy a tank of gas for your car with cash, you'd better have the cash with you. You probably won't get too far if you leave all of your cash at home. If a merchant is going to provide you with goods or services, he'll want a payment. If you don't have the cash, you'll need a different form of payment. That's why traditional forms of money don't work for online transactions. Unless you meet the merchant face-to-face, it's pretty hard to give the merchant your cash when he gives you his product.
There are other ways to pay for goods and services, of course, but cash just doesn't work online.
Internet Bible
Brian Underdahl and EdwardWillett
Comdex Computer Publishing
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Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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