Ecommerce Security and Threats

Running head: PAYTM
PayTM
Name of the Student
Name of the University
Author’s note

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Table of Contents
1. Introduction................................................................................................................2
2. Decomposition of PayTM..........................................................................................2
PayTM in India Development....................................................................................3
3. Threats associated with PayTM.................................................................................4
4. Vulnerabilities associated with PayTM...................................................................11
5. Control measures to mitigate the threats associated with PayTM...........................14
6. Conclusion................................................................................................................18
7. References................................................................................................................19

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PAYTM
1. Introduction
PayTM is e-commerce enterprise and is Payments Bank Company. Their company is
purely B2C e-commerce based.
This report will highlight the decomposition of the PayTM application. PayTM’s
impact on Indian society will be elaborated in details. Various kinds of threats associated
with PayTM will be discussed in details. Along with the threats, the vulnerabilities will be
showcased in the report. The security measures will be well discussed as well in the report.
2. Decomposition of PayTM
The company named One97 is one of the e-commerce enterprises and they cater the
services like mobile wallets, OTA bookings and revenue payments generation. PayTM is
apart of this organization. PayTM is not only e-commerce enterprise, rather it is Payments
Bank Company (Akazue 2015). They utilize a single commission system model to conduct
their business activities and their business is purely B2C e-commerce based. PayTM provides
their service via their websites and mobile applications, they integrate wallet and payment on
the online platform. The customers choose products according to their convenience, put it in
the cart, apply promo codes and finally order them. Later the seller prepares the item for
dispatch and then ships it to the customer. The whole shipping procedure is carried out by
courier service. The seller gets his revenue by selling the item to the customers. PayTM
charges only twenty percent of the revenues of the product and in turn provide customers to
the sellers. The other business that is carried out by PayTM is payments bank.
PayTM can be utilized for paying the utility bills. The customers pay for the DTH
bills, phone bills, electricity bills via the e-wallet facility of PayTM. The customers are not
limited to that, they pay their loans and home EMI, insurance premiums via e-wallets of

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PayTM. The customers first transfer their money from their respective bank to their
respective e-wallets of PayTM. The transactions are then continued through e-wallets. Other
than that they sell gold via their websites. PayTM acquires a high commission while
customers buy any items from their site (Akazue, Aghaulor and Ajenaghughrure 2015). The
customers also prefer to pay their bills online via PayTM as they can get discounts or
coupons on each purchase. PayTM also charges a minimal fee while customers want to use
promo codes or coupons. Once they put the money from the bank to their e-wallet of PayTM
they will not be able to put it back to their bank account. The customers can use the e-wallet
money according to their convenience at any time.
The e-wallet is a source of income for PayTM. In India, at the time of
dfemonetization, PayTM e-wallet comes handy and then the customers use the money of their
e-wallet account to purchase their valuables and everything (Akazue 2015). PayTM has
collaborated with UBER and IRCTC. The customers can now travel UBER cars from their
PayTM e-wallet. They cater around about three percent discount to the transaction total and
the rest they pay the rest to the sellers.
PayTM in India Development
The e-commerce industry has flourished to a great extent due to the advent of PayTM
and with the usage of smartphones, tablets the e-commerce has become more predominant.
The compound annual growth has increased in India up to thirty-four percent since the year
2019 solely because of PayTM. This is the reason, the public sectors are adopting e-
commerce to enhance their activities (Aljawarneh 2015). PayTM is making India digital and
the India Prime Minister advised Indian citizens to use PayTM at the time of demonetization.
The Prime Minister motive is to make digital and along with that, he wants to make India
corruption free. Thus he has taken the approach to use PayTM and also suggest everyone.
The Government wants to impose a right amount of tax on every item and if anyone pays via

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PayTM then it will be impossible for the anyone to evade tax, every transaction of money
will be recorded and this data will be available online and in the database of PayTM. Thus as
the transaction will be recorded everytime the corruption will significantly reduce (Awan and
Memon 2016). Thus PayTM has made significant impacts on the Indian economy and this
software is gradually becoming famous at every corner of India.It is hoped the whole India
will digitalise with the aid of PayTM.
Fig 1: PayTM and its services
(Source: Awan and Memon 2016, pp-425)
3. Threats associated with PayTM
The threats associated with e-commerce are as follows-
Human elements
The main motto of the business owners must be to secure their workplace first and
PayTM is no exception. PayTM may have the highest security architecture but have to

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consider the insiders. The insiders may steal the vital information of the system and the
database also there can be another kind of data breach as well. The data can be leaked and the
whole system and the database will be vulnerable to threats. Again, the employees show
laziness and they do not bother installing security software in their system. The lack of
antivirus software can put the database in risks and so the important data like customers' data
can be at risk as well. Also, some employees do not want to change because so they do not
install the software (Becker, Alper and Lee 2014). Even they do not want to change the
operating system, hardware and software components as well, this leads to the disruption and
thus the system becomes vulnerable to threats and risks. That is why PayTMneds to take
proactive steps to mitigate those risks related to human elements.
Threats related to e-commerce servers
PayTM include all the sensitive information of the customers alongside the sensitive
information of the employees. The intruders garner that information and exploit the system
for their advantages. Thus the hackers carried out their attacks via the ransomware and
malware. The attack also involves the DDoS attacks and phishing schemes. By means of
phishing the intruders acquire the personal information of the customers and in this way, the
customers' bank account details can be hacked. Even the DDoS attacks are equally
dangerous, the authorized users will not be allowed to access their own system. The other
type of threats that is related to the server is a technological failure of the system. The
computer system can fail due to the loss of packets (Deshmukh, Chhangani and Thampi
2016). The weak network configuration can be the cause of the failure as well. Again
sometimes the software codes on basis of which a software is developed get corrupted or
bugs can be found while the software is tested. Therefore, PayTM must be aware of their
website as well as the mobile site. Misconfiguration can cause harm to the severe extent to
these companies. The customers can lose their hard earned money by this misconfiguration or