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10.7 Consumer and Seller Protection from Online Fraud 319

identified (see Chapter 11 for bitcoins). The hacker encrypted Consumer (Buyer) Protection
the data that were not backed up. The hospital failed with its
disaster recovery plan, so there was no choice (per the hospi- Consumer protection is critical to the success of any com-
tal management), but paying the ransom. For details see merce, especially electronic ones, where transactions between
Jennings (2016). buyers and sellers are not face-to-face. The Federal Trade
Commission (FTC) enforces consumer protection laws in the
United States. The FTC provides a list of common online
SECTION 10.6 REVIEW QUESTIONS scams (see onguardonline.gov/articles/0002- common- online-
scams). In addition, the European Union and the United States
1. Define access control. are attempting to develop joint consumer protection policies.
2. What are the basic elements of an authentication system? For details, see the Trans Atlantic Consumer Dialogue website
3. Define biometric systems and list five of their methods. at tacd.org.
4. Define a symmetric (one-key) encryption.
5. List some of the disadvantages of the symmetric system. Representative Tips and Sources for Your Protection
6. What are the key components of PKI?
7. Describe the PKI process. A representative list follows:
8. How does a digital signature work?
9. Describe digital certification.
10. List the basic types of firewalls and briefly describe each. • Users should make sure that they enter the real web-
11. How does a VPN work and how does it benefit users? site of well-known companies, such as Walmart,
12. Briefly describe the major types of IDSs. Disney, and Amazon.com, by going directly to the
13. What are general controls? List the various types. site, rather than through a link.
14. How does one protect against spam? • Check any unfamiliar site for an address and tele-
15. How does one protect against pop-ups? phone and fax numbers. Call and quiz a salesperson
16. How does one protect against phishing, spyware, and about the company and the products.
malvertising? • Investigate sellers with the local chamber of com-
merce, Better Business Bureau (bbb.org), or TRUSTe
(truste.com).
• Investigate how secure the seller’s site is and how
10.7 CONSUMER AND SELLER well it is organized.
PROTECTION FROM ONLINE • Examine the money-back guarantees, warranties,
FRAUD and service agreements before making a purchase.
• Compare prices online with those in regular stores—
Internet fraud is a major problem in e-commerce and it is prices that are too low may be too good to be true.
growing rapidly. The fraud is mostly against consumers, but • Ask friends what they know about the websites. Find
there is some against sellers and merchants. Governments testimonials and endorsements (be careful, some
are especially eager to educate the public about the many may be biased).
types of fraud, which target senior citizens in particular. • Find out what remedy is available in case of a
General information on what are common frauds is provided dispute.
by agencies such as the FBI (see fbi.gov/scams-safety/ • Consult the National Consumers League Fraud
fraud/internet_fraud). The FBI also operates the Internet Center (fraud.org).
Crime Complaint Center, IC3 at ic3.gov. Internet fraud is • Check the resources available at consumerworld.
growing problem (about 25% of all consumers are victims). org.
The problem is growing due to the blending of social com- • Amazon.com provides comprehensive protection.
merce and e-commerce and the increased use of m-com- See payments.amazon.com/merchant.
merce (see Frenkel 2016). For an overview, see paypal.com/
c2/webapps/mpp/paypal-safety-and-security.
It is necessary to protect EC consumers, which the IC3 In addition to these tips, consumers and shoppers also
attempts to do, by informing the public about Internet scams
have rights on the Internet, as described in the following list
and by publishing public service announcements.
of sources: