Answer the following: Why should business transactions be secured?

Answer the following:
Why should business transactions be secured?

ANSWER:

Business transactions should be secured because online transactions face a number of risks. Following are the type of risks involved in e-business:

i. Data Storage Risk - Data stored in a system is prone to misuse by hackers and fraudsters.

ii. Transaction Risk - The following are some of the transaction risks:

a) Default on order taking or giving: Either the seller denies that receipt of the order or the customer denies the placement of the order.

b) Default on delivery - In this case, either wrong goods are delivered or the goods are delivered at the wrong place. It can also happen that the goods are not delivered at all.

c) Default on payment - In this case, the seller denies the receipt of any payment, while the customer claims to have made the payment.

iii. Risk of Threat to Intellectual Property and Privacy - Information uploaded on the internet is prone to the risk of getting leaked and copied, as business transactions are highly prone to internet risks and online threats. Other examples include the leakage of credit/debit card details to the third parties, virus attacks and hacking and phishing activities. Thus, business transactions should be secured.