CBSE Class 11 Business Studies Security and Safety of Business Transaction

CBSE Class 11 Business Studies Security and Safety of Business Transaction

Takshila Learning offers well-structured CBSE Class 11 Business Studies online course interspersed with interesting content and self raised questions that make learning almost effortless for Class 11 Commerce students. Takshila Learning regularly gives you different blogs and articles as demanded by students.

Today from our CBSE Class 11 Business Studies segment, we have chosen the topic ‘Security and Safety of Business Transaction’ from Emerging modes of Business. These notes are short, crisp and easy to understand for all.

Security and Safety of Business Transaction

Security problems related to e-commerce

E-commerce has been facing certain problems which endanger the security and safety of business transactions. The important problems are discussed below:

1.Transactional Risk:The common transactional risks of online dealings are:

1. A) Default on order – A seller may deny that the customer ever placed the order.
2. B) Default on delivery – Sometimes, goods may be delivered to the wrong address or goods other than ordered may be delivered to the buyer.
3. C) Default on payment – Sometimes, the seller does not get the payment for the goods supplied, whereas the customer claims that the payment has been made.

To overcome these problems, the seller must confirm that the customer has entered the correct information from the cookies. ‘Cookies’ are just like caller ID on the telephone which provides information like customer’s name, address, previous purchased record, etc. Customers can also protect themselves by shopping from well-established websites only.

2. Data Storage and Transaction Risks– Vital information stored in the system can be stolen or changed to pursue some selfish motive. The risks involved data storage is:

A)Virus (Vital Information Under Seize)– Some of the computer viruses are deadly. They can clean up all information stored in the computer memory. The Viruses can enter the computer through email, disc, or pen drive. Viruses bring the things to a standstill, causing huge loss of time, and revenue for the organization.

1. B) Hacking – Hacking refers to unauthorized entry into a website. Hackers often destroy the data and information which causes huge loss to the owner of the website because of interruptions.

This problem can be solved by:

1. Setting up a Special Crime Cell. The government has set up a Special Crime Cell to look into the crimes committed by the hackers and take necessary action against them.
2. Encryption. It refers to converting the message into a code so that an unauthorized person may not understand it.

• Digital Signature. Under this method, a coded digital certificate is issued by the certification authority. This helps in checking the identity of the sender.

3)The Risk of Threat Intellectual Property and Privacy.

1. The information available over the internet (in the course of online transactions) may be copied by other online vendors, who may start sending promotional messages in the email box of the customer.
2. The online vendor himself may not protect confidential information about the customers.

• Hackers may pretend to be customers themselves. They may make use of stolen credit cards for real customers.

1. A fraudulent business enterprise may operate a fake website and take away advance money from customers and not supply any product.

Ensuring Safety of Business Transactions

In e-commerce, security problems arise in terms of the internet and the danger that hackers will intercept messages, misuse the information, or change the content of the message.

In order to ensure Security and Safety of e-commerce, the following points need to be strengthened:

1. Authentication n ‘Cookies’. In order to confirm that the customer has correctly entered his details in the registration form, the online vendor may verify the same from the ‘cookies’. The Cookies are very similar to the caller ID in telephones that provide telemarketers with relevant information about the customer such as his name, address, previous purchase payment record, etc. the sender of a document must be identified precisely and without any possibility of fraud.
2. Antivirus Programs. Antivirus programs (g. Norton, AVG, etc.) should be installed. All files and discs should be scanned fully using such programs to protect data files, folders, and systems from virus attacks.

• Encryption is the conversion of data into a code so that it may not be read by unauthorized users. The data is converted into the code by the sender and then decoded by the receiver know the rules for encoding and decoding and thus nobody else can read the message.

1. Digital signatures. A digital signature is used to authenticate the sender of the message and to check the integrity of the message, e. it has not been altered in transit. The authentication element requires a digital ID, also known as a digital certificate, that is issued by a third-party certification authority.
2. Cyber Crime Cell. In many countries, the governments have set up Cyber Crime Cells to inquire into the cases of hacking and other crimes and book the criminals and take necessary action against them.

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