… Internet Explorer 2. 1 and Netscape Navigator 2. 0 support SSL. SSL sites are notated by an unbroken lock or key icon. “SSL can now use a 128-bit key so it’s very secure and reliable (Harvey, website).” Major credit cards are also getting involved to protect their customers account information and reduce their exposure to fraud.
Companies such as MasterCard, American Express, and Visa have created a program known as Secured Electronic Transactions (SET). SET uses digital certificates to merchants and credit card issuers with a way to authenticate credit card information provided by the user online. SET require consumers to provide what type of credit card they are using and personal information. An on-screen wallet is portrayed that stays on the consumer’s PC.
Once purchase is made, order information is sent to the merchant and credit card information is encrypted then sent to the credit card company. This software is still in the pilot stages but Visa spokesperson, Greg Jones, expects that the technology will take at least another few years before merchants and financial institutions using SET will reach a critical mass. The government agency in charge of monitoring and protecting consumer’s rights on the internet is the Federal Trade Commission (FTC). While many of the issues the FTC deals with in regulating internet fraud include false advertising and misrepresentations, they are also able to prosecute those who abuse credit card purchases. A who uses stolen credit cards to engage in transactions over the internet may be liable to criminal charges under federal statutes from the FTC or individuals as well as civil damages by the credit card companies and individuals.
Companies such as Verisign authenticate websites validity and having a Verisign logo on a website may ensure consumers that the site is secure to perform legitimate credit card transactions. The internet makes transactions faster and easier than ever before. Since the introduction of e-commerce, online companies have found new ways of letting consumers pay for their items. The old way would be too buy the product and submit credit card information online.
Now, payment systems have become more advance, allowing vendors to withdraw money directly from the buyers’ bank account. Companies have gone to great extents ensuring that online transactions are safe, convenient, and reliable. Perhaps the most well known electronic payment system is Paypal. They are an “industry leader in fraud prevention and risk management” and “has one of the lowest loss rates in the online retail industry.” Paypal boasts well over sixty-four million member accounts worldwide making them a leader in credit card processing.
The problem with these kinds of systems is that they are prone to hackers and cyder-thieves who may be able to break into accounts and misuse the money. In the physical world, there are provisions which protect consumers form being victims of transaction fraud. Under the Uniform Commercial Code (UCC), articles 3 and 4 govern payment systems and other forms of negotiable instruments. Credit card protection is provided by The Fair Credit Billing Act (FCB A) and debit card protection is provided by The Electronic Fund Transfer Act (EFTA). These two pieces of federal legislation address the issue of lost or stolen credit cards and the process used to resolve errors on credit card and bank account statements.
These acts limit the loss of a cardholder to $50 for unauthorized credit card usage given that they reported the loss immediately. Consumers receive additional protection from their financial institutions and they often do not hold cardholders liable for any unauthorized transactions. However, stored value cards do not receive any protection at the federal level. Under EFTA, which defines transactions as “transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, which is initiated through an electronic terminal, telephonic instrument, or computer or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account.” What this means is that any transaction not performed on paper is subject to regulations under EFTA. This also includes paying for goods with a credit card in a brink and mortar store, since the credit card is authorized by an electronic terminal. Credit card fraud performed over the internet can carry the same penalties as those performed otherwise including, but not limited to, 10 Years Imprisonment and / or a $10, 000 Fine under U.
S. C. Title 18, Section 3056, Subsection (b). This specifically authorizes the United States Secret Service to detect and arrest any person who violates federal criminal laws relating to credit card fraud and related activity in connection with computers and / or access. Although online credit card and account theft is not uncommon, the rate of theft is declining. Tougher encryptions imposed by online companies and harsh penalties imposed by the government seems to be deterring online criminals from engaging in online fraud.
According to. com, online fraud rates have dropped from 3. 0% in 2000, to 2. 4% as of last year. What is interesting about this statistic is that the dollar amount of online fraud has increased from $823 mil in 2000 to $1.
45 bill as of last year. This is due to the increase consumer usage of e-commerce which has grown while the rate of online fraud has been stable accordingly. With increase technologies, it has become easier for crime to occur over the internet, but it has also made it easier to catch those who break the law using the internet. By implementing new legislation and rules, along with those existing in the real world, it is possible to deter cyder thieves from committing crimes freely on the internet. References Aa access. web account 101.
html. March 16, 2005 Federal Trade Commission. web 28, 2005’Giving Credit to the Web.’ Business Communications Review Jul. 1998: Vol. 28 Issue 7 pg 49. Business Source…
21 April 2005. Hiller, Janine S. and Ronnie Cohen. Internet Law & Policy. Saddle River, NJ: Prentice, 2002. ‘Is your credit card safe in cyberspace? .’ F urger, Roberta, PC World Feb.
1998: Vol. 16 Issue 2. Consumer Watch. Ebscohost. 23 April 2005.” More put Credit Cards Online.” Mach lis, Sharon, Computer World, Framingham March 1998: Vol. 32 Issue 11 pg 6-7.
US News. Proquest. 23 April 2005… Paypal. web March 15, 2005.’s ell your work online.’ Allen, Moira, June 2003: Vol.
116 Issue 6. Net Working. Ebscohost. 23 April 2005.
Worldpay. web March 15, 2005 The UC Group. web March 15, 2005.