KCA UNIVERSITY

FACULTY: COLLEGE OF TECHNOLOGY

UNIT: E-COMMERCE

UNIT CODE: BISF 2105

GROUP MEMBERS: REG NO:

Morris Gatweku King’ori 18/01306
Ron Ragu Gitau 19/02558
Mohamed Zakaria Abdullahi 20/03618
Bageni Wigina 20/03907
David Wahome Maina 20/04071

DATE: 25th November, 2021

a) Describe how trust can be increased in online business.
i. Provide an experience that is authentic to who you are and the brand you represent.
Once you believe in the brand you represent and is authentic to you, you won’t have to fake
interest. Customers will sense the passion and will automatically attract to your business.
Passion also makes it possible for you to provide high-quality services.
ii. Be sincere and respectful to the customers. Online businesses grow from referrals from
satisfied customers. Customers who are treated with respect tend to feel important and cared
for which will make them want to refer other people or come back again. Customers also
appreciate honesty especially when it comes to what you are able to deliver and what you are
not. This reduces the chances of them being disappointed.
iii. Ensure you have good communication with customers. This is especially important when
it comes to late delivery. Ensure that the customer has sufficient notice in case their delivery
will be late. This will ensure that they and adequately prepared for the delay.
iv. Interact on social media. Being intimate with the customers makes them feel like they are
part of your brand. They become more comfortable and familiar with you hence encouraging
them to buy from you or refer you to others.
v. Be consistent. This means with both your product and your engagement on social media.
This will show your target market that you are reliable

b) Explain the challenges of stopping e- commerce crimes.

i. Lack of sufficient information. To protect user data, law enforcement may only be granted
access to a small portion of the information they may need for the investigation or none at all.
Criminals can also use encryption to prevent law enforcement from accessing their devices.
This lack of information may cause the investigation to be delayed or discontinued completely.
ii. Use of cryptocurrency. Cybercriminals have resulted in to use of cryptocurrency because
it is much more difficult to trace. Cryptocurrency is also not regulated by any organization
hence any amount can be transferred at a go without requiring any more information.
iii. The use of the dark web and cryptocurrency also makes it difficult for law enforcement to
trace an individual’s location. Without a location to narrow down to, law enforcement usually
gets derailed.
iv. Legal frameworks in different regions may vary which makes it difficult for law
enforcement to coordinate across those regions. Some activities that may be considered illegal
in some regions may be legal in others, therefore, providing safe havens for criminals.
c) Discuss the unique features of ecommerce.
i. It has an international reach. The main benefit is that it allows businesses to connect with
people all over the world, allowing you to conduct business across cultural backgrounds with
far higher cost and effort efficiency than traditional commerce. This increases the market's
potential size.
ii. It is an interactive type of business. It is considerably easier to have two-way contact
between the customer and the business. This means that you can do all of these things with just
one webpage. Both the seller and the customer are more committed when they have direct
interaction.
iii. The standards are practically universal. This characteristic is advantageous because
technical standards will be easier to unify and implement because they will be shared by all
governments on the planet. Many hurdles or constraints are broken as a result of this, resulting
in more uniform products that avoid difficulties. Because many e-commerce sites operate in a
similar manner, it is simple to compare pricing, product descriptions, delivery schedules, and
other factors, making it easier for customers to make purchases.
iv. Availability of a vast amount of information. Because the amount of information
available about a product on the internet is vast, nearly every e-commerce site that sells the
same product uses the same description. Others, on the other hand, show a little more interest
in the information they supply in order to provide more, of greater quality. This creates a
stronger bond with users, allowing them to make more informed decisions. Long and tedious
descriptions, on the other hand, are not always a good idea, especially if they are overly
technical or difficult to comprehend. That is why people who can compress all of that data into
writing that is both understandable and practical are needed to make decisions.
d) Explain the concept of a digital wallet in ecommerce.
A digital wallet is a software-based solution that allows you to make e-commerce purchases.
Online purchases may be made with ease using a digital wallet on computers, tablets, or
smartphones. Individual users' bank accounts are typically connected to their digital wallets.
User credentials are securely saved and validated throughout transactions in a digital wallet
system. Not only are digital wallets used for online transactions, but they are also used to verify
the identity of the user. A digital wallet may contain all of a user's credentials, transaction
history, and personal information. Other mobile payment methods can be used in conjunction
with digital wallets.
A digital wallet has two major components: one is the software application and the other is the
information storage. The program is in charge of security, encryption, and the transaction
itself. This is the major component that offers the user interface as well as safe and secure
transactional capabilities. The client-side software is compatible with the majority of e-
commerce websites. The information is stored in the other component, which is a database
storing user input data. Items like billing address, shipping address, and payment methods are
included in the user information.
A server-side digital wallet is a different form of digital wallet that is accessible. It is usually
produced for users by organizations. These wallets are becoming more popular as they are more
secure, efficient, and provide additional features.
e) What is non- repudiation? Explain how non-reputation applies from both the customer
and the merchant in e-commerce security.
Non-repudiation is a legal term that refers to a service that gives evidence of data's origin and
integrity. It is commonly employed in the field of information security. Non-repudiation, in
other words, makes it exceedingly impossible to effectively refute who/where a communication
came from, as well as its legitimacy and integrity.
Both buyers and sellers are necessary for a successful business. Once they understand that there
will be no repudiation, they must not deny any facts or norms.
Non-repudiation establishes whether or not the information exchanged between the two parties
was received. It assures that the individual who completed the transaction cannot refuse the
purchase. In other words, it's a guarantee that no one can question the transaction's legitimacy.
Because no one can refute the legitimacy of their signature on a document, most non-
repudiation employs a digital signature for online transactions.
From the standpoint of the customer, it is, “Can a party pursue action against me if I have
refused the action?” From the point of view of the merchant, it is, “A client might refuse to
purchase a product after placing an order.”
Example: When a merchant does not have sufficient verification of clients who have ordered
with them during a credit card payment transaction, the transaction will not be completed
further. Customers have been known to claim that they did not order a product from a certain
seller because they afterwards detested it.
f) What is credit card fraud? How is it a concern in e-commerce security and how can it
be solved?
Credit card fraud is the unauthorized use of a credit or debit card, or a comparable payment
method (ACH, EFT, recurring charge, etc.) to unlawfully gain money or property is known as.
Numbers for credit and debit cards can be taken through insecure websites or obtained through
an identity theft operation.
e-Commerce fraud is when a criminal or fraudster uses stolen payment information to make
online transactions without the account owner's knowledge on an eCommerce platform.
It is a concern in e-commerce security because;
A common scenario is a thief visiting a dark web site that sells stolen credit cards. The
perpetrator purchases the card data and then uses the stolen card number to purchase a product
or service from an online business. The cardholder whose card was taken gets defrauded in the
first transaction. However, it finally defrauds the business owner, who must offer a refund (and
sometimes pay a chargeback fee to the bank that issued the card). Card testing scams, in which
many credit cards are used to see which are still active and can allow transactions, can also
befall merchants. These are often tiny, low-risk orders, but they can build up to a significant
impact to a merchant's bottom line.
Ways to solve credit card fraud include;
• Maintain PCI compliance: The Payment Card Industry Data Security Standard (PCI
DSS) is a security standard developed to ensure the safety of credit card data. All
organizations that handle credit card transactions are required to adhere to PCI
standards.
• Do not store transaction data: PCI standards forbid businesses from storing credit
card information of the users. The information includes the 16 -digit card number, the
security code, the expiry date as well as the cardholder’s name. This is to ensure that in
the unfortunate event of a data breach the customer credit card data is not compromised.
• Use Credit card security codes: Credit card security code is a three to four-digit code
at the back of the card. Verifying this code helps ensure that the buyer is in possession
of the card. When the payment is being processed the card issuer replies with a code
confirming or rejecting the card’s validity.
• Only use your card for purchases on websites you trust. If you are visiting a website
for the first-time check for a security seal.
• Do not click links in emails asking for credit card information, especially those
from any company or individual you don’t recognize. Verify the sender’s email id.
Instead of clicking on the email link, type the web link in a web browser.
• When entering card information, check the page you’re on to make sure it’s secure (e.g.,
starts with https:// or includes a lock symbol in your browser bar).
• See if your card issuer offers a “disposable” or 1-time use card number, which still links
to your account but expires after 1 use (or is only good for use at a single merchant).
 • Do not enter personal information (including credit card numbers) if you’re on a
public computer or public Wi-Fi network.
• Keep your anti-virus software up to date to prevent hacking.
• Watch your transaction history — make sure transactions match the amounts on your
receipts, and look out for anything you don’t recognize.
• Don’t give up credit card information over the phone or over social media
g) Explain the contribution of the following systems in e-business applications:
i. Smart Cards.
• Security: Smart cards are more secure as they are programmed with encryption and the
user’s personal information and the transactions are safe.
• Convenience: Smart cards are small in size and hence convenient to carry.
• Economy friendly: Smart cards help in our economy by reducing transaction costs by
eliminating paper.
• Multifunctional: smart cards can be used for multi functions like paying bills, booking
tickets, paying for food etc.
• Reliable: Smart cards are more reliable than magnetic stripe cards.

ii. Electronic Data Interchange (EDI) systems.

• Reduced transaction expenditures.
It is a technology used to electronically transfer routine documents, which expanded electronic
transfers from financial transactions to other types of transaction processing.
• Quicker movement of imported & exported goods.
Prior to EDI, business depended on postal and phone systems that restricted communication to
those few hours of the workday that overlap between time zones.
• Improved customer service through ”track & trace” programs
• Faster customs clearance & reduced opportunities for corruption, a huge problem in
trade
• Reduction in transaction costs
• Foster closer relationships between trading partners
iii. World Wide Web (WWW).
• Creates a presence
Many businesses have understood the advantages of having an online presence and have used
web-based apps to better their business operations to achieve their goals. As a result, a website
has the potential to raise awareness, ensuring that your items are constantly available to
customers.
• Networking
Organizations and corporations alike are attempting to develop an online presence. Networking
is the most effective way to keep in touch with potential clients and businesses. Furthermore,
networking may be used to target a certain audience, resulting in increased income.
• Exchange of business information
Your site, like any other kind of promotion, can include information about your company hours,
service, e-mail, location, and phone number for customers to see. To assist customers in making
educated selections, a hotel may allow them to make bookings, view the special menu, and
search for vegetarian cuisine.
• It is convenient
Your products and services are easily accessible to customers from all around the world. Your
customers may purchase from the comfort of their own homes when they shop online.
Furthermore, instead of waiting in long lines in the mall, customers may quickly search through
a big database for a specific item.
• Improves availability
Aside from selling items, your firm may also generate additional revenue. For example, your
website can give customers with all of the information they need to make an online purchase.
The best part is that it's all done automatically, with no need for human intervention.
iv. Automatic Teller Machines (ATMs).
• The ability to access one's account 24/7 at multiple locations
• It is a fast way of transaction between account holders and machines. No need to wait
outside the bank or inside the bank.
• ATMs provide service without error. The customer can obtain exact amount. There is
no human error as far as ATMs are concerned.
• ATMs are of great help to travellers. They need not carry large amount of cash with
them. They can withdraw cash from any city or state, across the country and even from
outside the country with the help of ATM.
• Improved customer service, as lines in traditional banks decrease
• More security when compared to cash; if an ATM card is reported as stolen, the thief
won't be able to withdraw any cash. ATMs also provide privacy in banking transactions
of the customer

h) Describe the benefits of electronic data interchange

• Data is entered only at the source, thereby decreasing the errors.
• There is no need for rekeying the information as the transfer of information from
computer to computer is automatic.
• Cost of processing EDI documents is much less than that of processing the paper
document.
• Customer service is improved. The quick transfer of business document allows order to
be fulfilled faster.
• There is improved job satisfaction among data entry operators, clerks etc. as they
deployed in more creative activities.
• Reduction in transaction costs
• Foster closer relationships between trading partners
• Improved customer service through ”track & trace” programs
• Faster customs clearance & reduced opportunities for corruption, a huge problem in
trade
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