The New Dimension of the Internet - Term Paper Example

Download file to see previous pages This new dimension of the internet has provided many opportunities for customers and merchants. At the same time, created problems for the merchants as not all customers are genuine and honest. Russell [17] conducted a study and concluded that Americans have their identity stolen almost every minute and spend an average of 600 hours to recover from the effects of this crime.
According to research by US Federal Trade Commission [2] in 2001; it was concluded that around 1000 complaints were lodged for online fraudulent activities, whereas this number increased to a huge number of 25000 by the year 2000. Patton et al [3] and Connolly et al [5] state that these kinds of figures have created an environment of mistrust between the merchants and the customers. Qi et al [4] write that the main aim of the online shopping companies is to ensure that the customer is honest about his identity and minimize the manual work in terms of the decisions for the authenticity of the identity. Olsen [18] studied that companies tend to spend a good amount to maintain a secure environment for their online business.
Altendorf [19] has analyzed that much development has been done in this field to make e-commerce transactions safe from any fraudulent activities. One of the technologies that are gaining a name in this regard is ‘Geo-location’. Jain et al term credit cards as having a ubiquitous nature.  Credit card processing is very vulnerable as it involves many entities, there might be many places where fraudulent activities can be suspected. Montague studied and concluded that merchants make a lesser profit through a credit card payment than by cash but they have to enable this mode of payment to get more customers and thus more business online. ...Download file to see next pagesRead More