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E-Commerce Security

E-Commerce Security. COEN 351 Thomas Schwarz, S.J. Amazon.com. 1994: Bezos founds amazon.com 1995: Amazon opens for business; competes on prize, selection, convenience, service. Business model promises low overhead. 1999: Bezos is man of the year for Time magazine.

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E-Commerce Security

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  1. E-Commerce Security COEN 351 Thomas Schwarz, S.J.

  2. Amazon.com 1994: Bezos founds amazon.com 1995: Amazon opens for business; competes on prize, selection, convenience, service. Business model promises low overhead. 1999: Bezos is man of the year for Time magazine. 2000: 2.7 B$ revenue, 1.4 B$ loss starts search for profitability. 2002: First ever profits. 4B$ revenue 2005: First quarter net revenue 1.9B$, net income 78M$

  3. E-Commerce • E-commerce • Use of the internet to transact business. • E-commerce I • 1995 – 2000: explosive growth, extraordinary innovation • March 2000: dot.bust • 2001 – today: solid growth, less hype

  4. E-Commerce I • Disintermediation • Friction-free commerce • Information equally distributed • Transaction costs are low • Prices are dynamically adjusted • Goal of “First Mover” • Successful first mover becomes new intermediary $120 B$ capitalization for 12,450 dot start-ups 10% survival rate, very few profitable

  5. E-Commerce II • Earning and profits emphasis • Traditional Financing • Stronger regulation and governance • Strengthening intermediaries • Imperfect markets • Mixed “click and brick” strategies

  6. E-Commerce Business Model • Value proposition (Why buy from you?) • Revenue model (How will you make money?) • Market opportunity • Competitive environment • Market strategy • Organizational development • Management team

  7. E-Commerce Business Model • Revenue Model • Advertising revenue model • Subscription revenue model • Transaction fee revenue model • Sales revenue model • Affiliate revenue model

  8. E-Commerce Business Model B2C • Portals • E-tailers • Competitive market because barrier to entry is low • Content provider • Transaction broker • Market creator • Brings buyers and sellers together • Service Provider • Community Provider

  9. E-Commerce Business Model B2B • E-Distributor (Sales of goods) • E-Procurement (Fees, supply chain management, fulfillment services) • Exchanges (Fees, commissions on transactions) • Industry Consortia

  10. Emerging E-Commerce Business Models • C2C: eBay • P2P: Kazaa • M-commerce (mobile commerce), uses wireless • E-commerce enablers

  11. Internet Fraud Complaints 2003 • Auction fraud 46.1% • Non-delivery 31.3% • Credit / Debit card fraud 11.6% • Investment fraud 1.5% • Business fraud 1.3% • Confidence fraud 1.1% • Identity theft 1.0% • Check fraud 0.5% • Nigerian letter fraud 0.4% • Communications fraud 0.1%

  12. Internet Fraud StatisticsFirst Half 2005 • Instance % compl. Average Loss • Auctions 44% $999 • General Merch. 30% $4,389 • Nigerian Scam 7% $11,370 • Fake Checks 5% $4,733 • Phishing 4% $298 • Lotteries 3% $3,953 • Info / Adult services 2% $277 • Work-at-Home Plans 1% $726 • Computer Equip. / Software 1% $608 Source: National Internet Fraud Watch Information Center Data is on complaints by consumers.

  13. E-Commerce Security • Integrity • Non-repudiation • Authenticity • Confidentiality • Privacy • Availability

  14. E-Commerce Security • Threats: • Malicious Code • Hacking, Cybervandalism • Credit Card Fraud • Spoofing • DoS, DDoS • Sniffing • Insider Jobs

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