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involved in a transaction.

Because of greater probability of such risks in the case of

online transactions, security and safety issues becomes the
most crucial concern in e-business.

One may broadly discuss these issues under three headings:
transaction risks, data storage and transmission risks, and

threat to intellectual property and privacy risks.

i. Transaction risks:

Online transactions are vulnerable to the following types
of transaction risks:

 Seller denies that the customer ever placed the order

or the customer denies that he ever placed the order.
This may be referred to as ‘default on order

taking/giving.’

 The intended delivery does not take place, goods are
delivered at wrong address, or goods other than

ordered may be delivered. This may be regarded as
‘default on delivery’.

 Seller does not get the payment for the goods supplied

whereas the customer claims that the payment was
made. This may be referred to as ‘default on payment’.
ii. Data storage and transmission risks: Information is power

indeed. But think for a moment if the power goes into the

wrong hands. Data stored in the systems and en-route is
exposed to a number of risks.
 Data stored in the systems and en-route is exposed to a

number of risks. Vital information may be stolen or

modified to pursue some selfish motives or simply for fun/
adventure, like hacking.
iii. Risks of threat to intellectual property and privacy: Internet

is an open space. Once the information is available over the