Exchange of information and financial transactions to procure goods and services over the Internet is termed as e-commerce activity. For the purpose of business progression, manufacturers, suppliers and distributors also interact via e-commerce system. Majority of organisations in the contemporary world of technological advancements have prominent presence on the web and there a number of brands which do not need bricks and mortar to prove their successful market presence—ä
The most common form of e-commerce was limited to online procurement of goods and services where consumers place an order online and receives the selected goods and services at their doorstep. With the passage of time, a muti-channel retail system has also been introduced by which consumers purchase through online transaction but receive their chosen goods from the respective store at their own convenience.1 In addition to this, ecommerce systems are also widely integrated in the service industry including banks, building societies and insurance companies etc. Regardless of the nature of host industry in which an e-commerce system has been integrated, the associated advantages and disadvantages are more or less similar. The paper intends to highlight the security issues pertaining to e-commerce system and proposes few vital recommendations for improvement.


Apart from the threats of physical or hardware damages, e-commerce system is gravely influenced by the risks associated with its technical and software mechanism. The technical and software mechanism of e-commerce relies upon three security components which are discussed below. Moreover, the key security features that facilitate an organisation to develop a secure system have also been examined.

2.1.1 Security Components

The concept of security encompasses three essential components including confidentiality, integrity, and availability. The authorised parties are allowed to access the highly confidential information and data related to the consumers. Leakage of any such private information to an unauthorised party or an individual is the breach of confidentiality.2 The integrity of the data is ensured by preserving the exact information contained in it however; the integrity can be violated by the addition of supplementary demand for payments within bills and statements.3 The third component of security is the availability which ensures secure access to resources and if it is delayed than the idea of availability is negatively influenced.

2.1.2 Key Security Features

The key security features of an e-commerce system include authentication, authorisation, encryption and auditing.3 Each of these features has its distinct uniqueness and significance in an effort to preserve secure transactions.
- Authentication is the process of verifying that the individual accessing the system is the same as he claims to be and prevents the unfamiliar person to log in to process transactions.
- Authorisation is the act of taking command over the online personal resources and manipulates them through specific mechanism.4 The process enables an individual to keep track of their account balance and invoice system without the hassle of unnecessary deletion.
- The process of encryption is designed to enhance maximum security measures by hiding confidential information. It prevents the unauthorised access to financial transactions taking place via the internet.
- Auditing is another security feature that is devised by the organisations to keep record of the online transactions. 3 Companies use this information to prove the validity of transactions especially in the case where a consumer claims a false transaction.

Example Business Essay:TASK: 02 - INTERNET SECURITY ISSUES: A DISCUSSION 7.9 of 10 on the basis of 2515 Review.