Electric commerce is a transaction of buying or selling through internet. E-commerce draws on technologies such as mobile commerce, electric funds transfer, supply chain management, internet marketing, online transactions processing, Electronic Data Interchange (EDI), and etc. Modern e-commerce typically uses the World Wide Web for at least one part of the transaction's life cycle although it may also use other technologies such as email and so on.
Model of e-commerce
There are four model of e-commerce such as Business-to-Business (B2B), Business-to-Consumer (B2C), Consumer-to-Consumer (C2C), Consumer-to-Business (C2B).
1. Business-to-Business (B2B)
B2B is well-known as Inter-company transactions. They do the transaction through Electronic Data Interchange (EDI) which is a method of exchanging business documents between companies / institutions electronically using the standard format agreed. For instance is Garuda Indonesia. B2B is divided by two, B2B E-Commerce and B2B Exchange.
2. Business-to-Consumer (B2C)
B2C is a business model that sales goods and services to market or public. For instance is Amazon.com Inc.
3. Consumer-to-Consumer (C2C)
C2C is an individual model that sales goods and services to consumer too. For instance is an auction company through internet, eBay Inc.
4. Consumer-to-Business (C2B)
C2B is an individual model that sales goods and services to companies. For instance is Priceline.
Although now trading system has been developing, there must be something wrong such as misuse in e-commerce itself. One of e-commerce fraud is online scamming. Online scamming is an act which is conducted by an irresponsible individual or groups that provide fake information for their own good. Online scamming has been occurring now, no wonder if people are already used to this fraud. There are disadvantages of misusing e-commerce:
1. Losing in term of financial.
2. Theft of valuable confidential information.
3. Lose the trust of consumers, and so on.
We as a good consumer have to be careful when using e-commerce itself. Here is four ways to prevent e-commerce fraud:
1. Boldly display fraud notices.
By placing fraud notices in both the content of your site and on order forms you can deter most online scammers. Explain any that violators will be subject to the law, and that they can be tracked by using their email address, and etc.
2. Carefully analyse orders.
If an order seems suspicious, check it out. Orders that are for several of the same expensive item, orders that do not seems concerned about size or colour, or large orders that request expensive overnight shipping are often signs that an order may be fraudulent. Make sure customers have completely filled out all information and that all of information matches.
3. Use Address Verification Service (AVS).
Address Verification should be performed on all transactions to make sure that the information that a customer gives you matches the information that the card issuing bank has on the file (the service does not work outside the U.S). You cannot exclude all orders that have different addresses for shipping that for card billing statements because it would be make it impossible for customers to send gifts from your site but orders like this should be handled with caution. Remember that you can always call or email customer concerning the nature of their order.
4. Be cautious of orders that use a free email address.
Free email addresses are easy to get and it needs a little information. Some people perpetrating fraud will use them to hide their identity. Some of the most common free email addresses are from Yahoo and Hotmail.
E-commerce may provide many advantages for us but we must be aware be an irresponsible persons who do online scamming for their own good. We as a smart consumer must be careful with advanced technology by using e-commerce wisely.
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Good article (y). Interesting and informative, but i think there are more things that still can be explored and offered to us (readers). But again, good job.
BalasHapusAwesome article! I'm Yosua from DATABASE MIS Group, my question is, is it possible to adapt Finger print scanner against fraud occuring in e-commerce?
BalasHapusThank you for your question, Yosua. Well, in my opinion, it is possible to adapt Fingerprint scanner in e-commerce because everything have been advanced now. E-commerce should improve its security especially to avoid fraud by using fingerprint scanner, of course the company have to do cooperation with a company with advanced technologies. It will be easier for consumer to do trading through internet. In conclusion, fingerprint scanner is useful to against fraud in e-commerce.
Hapus