Information Technology Reference
In-Depth Information
The first major challenge is for the company to define an effective e-commerce model
and strategy. Although companies can select from a number of approaches, the most suc-
cessful e-commerce models include three basic components: community, content, and
commerce, as shown in Figure 8.3. Message boards and chat rooms can build a loyal com-
munity of people who are interested in and enthusiastic about the company and its products
and services. Providing useful, accurate, and timely content —such as industry and economic
news and stock quotes—is a sound approach to encourage people to return to your Web site
time and again. Commerce involves consumers and businesses paying to purchase physical
goods, information, or services that are posted or advertised online.
Figure 8.3
Content
Industry news
Economic news
Stock prices
Three Basic Components of a
Successful E-Commerce Model
Commerce
Consumers and
businesses buying
and selling
Community
Message boards
Chat rooms
While the number of people shopping online and the dollar volume of online shopping
continue to increase, about one-third of all adult Internet users will not buy anything online
because they have privacy concerns or lack trust in online merchants. 11 In addition to having
an effective e-commerce model and strategy, companies must carefully address consumer
privacy concerns and overcome their lack of trust.
According to the Privacy Rights Clearinghouse, the approximate number of computer
records containing sensitive personal information involved in security breaches in the United
States from January 2005 to March 2008 is nearly 224 million! 12 This represents the
approximate number of records, not people affected. Some people have been the victim of
more than one breach. Following are a few examples of security beaches in which personal
data was compromised.
One of TD Ameritrade's databases was hacked, and the e-mail addresses, phone numbers,
and home addresses for more than 6.3 million customers were stolen.
Customer names, addresses, telephone numbers, and credit card numbers were
compromised by an intrusion into the Web site of online retailer Geeks.com.
An international gang of cybercriminals hacked into the computer records of the
OmniAmerican Bank of Fort Worth, Texas. They stole account numbers, created new
PINs, fabricated debit cards, and withdrew cash from ATMs around the world.
Attacks on Web servers hosted by a third-party service provider compromised the names,
addresses, credit card data, debit card data, and passwords of people who shopped on
Major League Soccer's MLSgear.com Web site.
In some cases, the compromise of personal data can lead to identity theft. According to the
Federal Trade Commission (FTC), “ Identity theft occurs when someone uses your person-
ally identifying information, like your name, Social Security number, or credit card number,
without your permission, to commit fraud or other crimes.” 13 Thieves may use consumers'
credit card numbers to charge items to their account, use identification information to apply
for a new credit card or a loan in their name, or use their name and Social Security number
to receive government benefits.
identify theft
Someone using your personally
identifying information without your
permission to commit fraud or other
crimes.
 
 
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