Lecture- E-commerce Technology for Safe money transaction over the net

8/9/2019 Lecture- E-commerce Technology for Safe money transaction over the net

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E-commerce Technology for

Safe Mone Transaction Over the net

Presented and PublishedNational Conference on Automation in Banks and Financial Institutions

22-23 June 2000 organized by IETE Chandigarh, held at CSIO Chandigarh

PresenterNoorjahan Haque

Faculty, Information technology

Chandigarh

Co-AuthorRaman K. Attri

Member IETE / Scientist,Central Scientific Instruments Organization (CSIO)

Chandigarh

Copyrights 2000 Neeru Haque / R. K. Attri


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Agenda

Evolution of E-commerce features of E-Commerce

Technology behind E-com

Money Safety issues and measures



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Meaning of E-commerce

- ,

selling, purchasing or exchange of services or productsover the Internet

Web shopping is only a small part of the e-commercepicture. The term also refers to online stock and bondtransactions and bu in and downloadin software

without ever going near a store.

In addition, e-commerce includes business-to-business

connect ons t at ma e purc as ng eas er or gcorporations.



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Evolution of E-Commerce

The e-commerce and e-business has evolved through a set

of technological changes coming in picture Internal Computerization in the company

world interaction)

Electronics Data Interchange withsuppliers(Extension of Internal network to suppliers toaccess company data base)

-external network to end users)

E-commerce Revolution (mone transaction, sellin


and purchasing over the internet)


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Typical Evolutionary Path of E-Com

Simple E-mailCompany Wide

E-mail

Sophisticated

E-mail System

Too clumsyE-mail usage

Simple WebSo histicated Static

Dynamic/interactive Secure info toignored

Little return on

investment

Need employee info

roc ureWeb sites

e s te ra ng partners

Meet internal

Need partner and

security info

Difficult to maintainNeed to update info

Basic Internal info

on IntranetWeb maintenance

System

Key Internal

Database on Internet

Back office

system linked

Little used

Improved internal

functionalityNeed back

Simple On-line

SalesFull Catalogue

Customers

Personalized

Stock control ,

shipment tracking

Few sales

Want to

info

Copyrights 2000 Neeru Haque / R. K. AttriNext Generation E-business

eep cus omers

improved efficiency


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Technologies contributing in E-com

Recent advances in telecommunications and computertec no og es ave move computer networ s to t e center o t e

international economic infrastructure.

Heavy rise in Internet and the World Wide Web hastrans orme g o a commerce y ac tat ng nstantaneous,inexpensive contact among sellers, buyers, investors, advertisers and

financiers anywhere in the world. e rap ntegrat on o nternet an ot er

telecommunications-based functionsinto nearly every sphereof business has led to an international focus on the New World of e-

.



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E-commerce Setup

Electronic commerce encompasses all business

Server ISP

Back Office

con ucte y means o computer networ s

Internet

links

ISPBack Client

PC

My LAN Net


Total Quality of service


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Business Communication: Old Way

Company A

FAX

Company BProprietary Data Comm(EDI/VANs



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Challenges in going E-commerce

Gettin into e-commerce is not as sim le as settin u a Web a e

with an order form. There are three big internal challenges in "e-enabling" business. All of

them have to be overcome to have a com lete end-to-end e-businessrunning.

a)The first is to take your back-office processes online and to automate

b)The second challenge is to make data-sharing possible acrossdisparate applications like your ERP systems, your suppliers systems,

- - .

c) Third is to automate your decision-making process.



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Impacts of E-Commerce

Electronic business is using innovative technology to buildrelationships and commerce globally and is the greatestopportunity and/or threat to existing business models

-

The mode of communication is changing big way both in

and outside the company. The old way of correspondenceis obsoleting and new way, through internet and intranetare in picture.



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Business Communication: Internet Way

Internet Server

Company A

Company X

e

E-mail etc

FAX/Post/point to point

Company B(to known location)



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Business Communication: Intranet Way

Company X

Company B

FAX/Post/point to point

Community of Trust

nternet erver

Web

E-mail etc

(to known location)Company X



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Elements of Trustworthy E-commerce Services

e pr nc pa e emen s o rus wor y n e con ex o on- ne

commercial transactions are: Security: Information transmitted during a transaction will

arr ve n uncorrup e orm an w no e mproper y ea e oothers.

Privacy: Protection to access and use of personal informationo a ne as a resu o e ec ron c ransac ons.

Authenticity: Verification that the parties to a transaction,and the services rendered, are truly as represented.

Non-repudiability: Assurance that a transaction will behonored as agreed and that each party can prove the validity ofthe terms of the deal in the court.



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E-commerce Security Issues

- .

Secure e-commerce transaction has to insure protection ofassets and rivac .

It should give reliable service, audit and accountability and

identification procedure Business and government institutions must develop

policies that build greater trust in the new transactionmedia



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E-commerce Security Technologies

(To be used in combination to ensure security)

Encryption (coding of messages) Cryptography(data transmission security by encryption

o con en s o message

Digital Signature(To prove that it's really genuine user -Its reall me!

Digital Certificate (user authentic identity-who am I?)

Firewall ( network and traffic watch to avoid

unauthorized access of the network resources)



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Encryption

Coding the transmitted message or credit card number with the help ofsome algorithm and a encryption key.

Encryption provide security in highly-networked environmentApplications include protecting files from theft or unauthorized access,keeping communications secure from interception, and facilitatingsecure transactions

Highly secure encryption can be deployed fairly cheaply

2.0 versions of Netscape Navigator and Microsoft Internet Explorerfacilitate transactions encrypted using Secure Sockets Layer (SSL), aprotocol that creates a secure connection to the server, protecting the

information as it travels over the Internet When Web site is secured by SSL, the URL begins with httpsinstead of

http.



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Cryptography

another key. One is called private key and other is calledpublic key. The message encrypted using receiver's publickey can be decrypted only by receiver's private key

It is used to guarantee integrity (i.e. that the contents of a,identity of a party, or to make legal commitments.

The strong crypto-system are now available which use

different algorithms like DES, IDEA and RSA



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Digital Signature

Now in e-commerce the issue that how one know thatit is really me? Evolving a digital signature does it.The digital signature is kind of message, known to me

private key and anyone can decrypt it using my public

key. T e reception en , it is prove at I ave enco e t e

message and signed it.

cash. This is also the basis for user authentication andnon-repudiation.



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Digital Certificate

.

has to be assigned to the fellow using the e-commerceservices. It reflects who am I? This is digital signature.

These digital certificates are issued by some trustedthird party.

g a reg s ry o a g a cer ca e o ers smade.

The client ne otiates with the re istr before doin

business with the server. Severs have the user'ssignature



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FireWall

protocols which isolate the networks and the traffics The fireball have following three objectives:

-It keeps out external threats like virus andunauthorized access from external person.

- preven n erna sens ve a a o e ransm eoutside without authorization.

-It revent internal attacks

Firewalls itself are not full proof security techniques



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Safe Money Transaction Technologies

Credit Cards (for purchasing at Point of sale counter using cardreader and web based on-line transaction on credit. Instant validationof account and deduction after the sale)

kinds of payments an on the instant deduction of money from the

account)E ectron cs eques (pre-issued software modules each

representing certain cash value, to be exchanged over the internet inplace of any money or smart card number)

Hybrid Mode (includes major and minor payment by smart card,coins, cheques etc--all in one)



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Credit Card

Credit card at Point of Sale Counter (POS terminalreads the card details and verify it over phone linesfrom the acquiring bank and credit card issuing bank)

Web Based Online-Credit Card Payment System

SET protocol encodes the credit card numbers onvendors' servers so that only banks and credit card

companies can read it The disadvantages of the credit card is that a third party



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Electronics Cheques

- .

card module represent some predefined cash amount. It is to be submitted where purchasing is being done.

No need of validation and third party involvementunlike credit card transactions.

eaper as r par y ees s no nvo ve .

Since the cheques are generally used in public, thismode of mone transaction is ex ected to be uite

popular.



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Hybrid Mode -Cybercash

T e Cy ercas s gett ng w e popu ar ty among t e wor

leader banks, merchants and users globally. The cybercashinterface with man leadin financial institutions.

It facilitate hybrid mode of payment which include credit

card payment system working on SET protocols andy erco n sys em or paymen rom . 5 o .

It also support electronics cheques providing pay nowfacilit for interactive billin a lications.



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The arena of E-business

E-Business is the powerful business environment that iscreated when critical business systems are connecteddirectly to customers, employees, vendors, and business

-, ,technologies, collaborative applications, and the Web.

Developing E-Business successfully means buildingre ia e, sca a e systems or security, co a oration,messaging, E-Commerce payments, supply-chainmana ement sales force data warehousin and customer

relations - and integrating all of this with existing back-endoperations



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About the author

Noor Jahan Ha ueearned her Masters in Information technoloin 1999. She served at IETE as associate faculty from [email protected] y

Raman K. Attri, Masters in Technology (Applied Electronics)served as senior scientist at CSIO Chandi arh from 1 -200 . Hisspecialization is in Instrumentation [email protected]


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Lecture- E-commerce Technology for Safe money transaction over the net