M-Commerce Security Threats and Solutions

This assignment delves into the realm of mobile commerce (m-commerce), analyzing its rapid growth and highlighting the inherent security threats it faces. It examines vulnerabilities such as data confidentiality breaches, integrity issues during financial transactions, and the importance of user authentication. The paper further emphasizes the need for robust security measures to protect sensitive information and build consumer trust in m-commerce platforms.

INFORMATION TECHNOLOGY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
FINDINGS AND ANALYSIS........................................................................................................1
Critically evaluate the main components of M-Commerce and the wireless technology used in
this................................................................................................................................................1
Security issues associated with m-commerce..............................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

LIST OF FIGURES
Figure 1 UK retail M-commerce sales.............................................................................................3

INTRODUCTION
In today’s globalized world it is becoming highly essential for business firms to go
through the adoption of various latest and advanced technologies. M-Commerce can be defining
as a most important process through which organizations can easily attain high growth (Li, Dong
and Chen, 2012). It is a process on the basis of which company can sell its goods and services
through wireless handheld device. Majority of firms these days are conducting their business
through internet by the use of using cell phones.
The present report is based on the critical evaluation of M-commerce as well as its impact
on the next-generation evolution of e-commerce. It provides proper understanding about the central
role of information system within an organization (Maity and Dass, 2014). Further, it gives required
information about the technologies that are associated with bringing fast and secure m-commerce to
the public. There are various security implications which might face by company as well as
customers.
FINDINGS AND ANALYSIS
Critically evaluate the main components of M-Commerce and the wireless technology used in
this
A mobile device plays a most crucial role in increasing customer interaction as well as
maintaining several transactions. According to Sripalawat, Thongmak and Ngramyarn (2011)
the rise of mobile has been exponential in recent years and its positive impact continuously
driving several evaluations in marketing such as mobile content marketing, e-mail marketing etc.
Majority of companies working within the telecommunications are trying to figure out what m-
commerce really is. Due to this, there are several concepts which have been presented by several
authors about the M-commerce. As per the vision of marketers, customers can use their cell
phones as well as various other wireless devices just to purchase goods and services they want.
For the same, they might use internet over their laptop and personal systems as well. According
to Chong (2013) M-commerce is all about the content delivery as well as transactions on mobile
devices. Consumers can get any type of notification related to their purchasing as well as data
entry. However, this technique is often presented as a highly frustrating experience. For the
same, it is being identified that 3G (third generation wireless digital cellular telephone
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technology) networks could change this situation and make consumers experience more
comfortable. Sharma and Gutiérrez (2010) stated that there are several m-commerce which is
user friendly and easily grab the attention of individuals. It also enables its users to buy
everything from anywhere over the internet. For extending m-commerce to customer’s internet
access and web browsing is considered as a major key. In this wireless and advanced technological
world M-Commerce has proven to be very successful as it provides full convenience to customers. In
this concern it can be stated that in the next-generation evolution of e-commerce both consumers and
operators do business (Shaw and et.al, 2012). One of the major reasons behind the use of this
technique is just its rapid expansion and increasing consumer interest. However, there are several
benefits as well as disadvantages associated with the same.
According to Li, Dong and Chen (2012) rapid expansion of e-commerce is presented as
m-commerce with the various palm handheld, wireless laptops as well as web enabled digital
phones of new generation. These devices are already existing and highly demanding tools of
market. However, there are various ways due to which m-commerce and wireless internet have
been the victims. They might become a reason for hacking and threating any individual by
stealing their personal information. It might leads to create negative impression in the mind-set
of customers. It has been founded from the survey that took place in spring 2000 by Jupiter
communication. After getting its results and findings it has been identified that majority of
respondents replied that they would not use nor pay for the wireless web (Schierz, Schilke and
Wirtz, 2010). They found these services very disappointing and they can rather go for the mobile
communication as it is most advanced technique.
According to Chong and Ooi (2012) m-commerce is rooted in paid for services within
any private mobile phone industry. However, majority of marketers are expanding their business
within this same field due to which business competition is stiff. Further, increasing and rapid
use of m-commerce is being presented as a most effective and common ways to expand business.
Within this concern, it is being identified that there are several benefits associated with M-
commerce. It involves all kind of electronic transactions by the use of mobile phone. With the
help of this organization can easily improve and widen their market reach. It helps them in
cutting down their cost and providing better customer services as well. Sadi and Noordin (2011)
argued that m-commerce is widely used concept as users get benefits from this in the form of
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convenience. This type of services can be easily explained by providing examples such as mobile
parking meter payments and buying ringtones and games online etc. Further, in this concern, it
can be stated that m-commerce is widely used concept and helps in maintaining consumer trust
through secure payment gateways and transactions as well (Niranjanamurthy and et.al, 2013).
Further, it is being founded that with the improvements in mobile business infrastructure,
m-commerce is growing rapidly. With the help of the e Marketer research it has been founded
that M-commerce is expected to grow over 40% by the end of 2019.
Figure 1 UK retail M-commerce sales
(Source: eMarketer.com, 2015)
Further, there are many components of mobile commerce which help people to manage
online transactions.
According to Sadi and Noordin (2011) Mobile store front modules are integral parts of
mobile commerce application, where all kind of products and services are divided and complied
within catalogues for customers which provide reliability to browse items. In addition to this, it
also provides information about the products and services to customers.
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Mobile ticketing module is component of Mobile commerce which is closely related to
promotional side of business. Along With this, it enables suppliers to lure the customers by
providing tickets, coupons as well as vouchers.
Mobile advertising and marketing module is component of mobile commerce which
empowers merchants to leverage its channels to handle its direct marketing campaigns. Further,
these approaches are very effective to target younger representatives for digital information.
Mobile customer support and information module is a reference for knowledge about a
specific retailer, deals as well as its offerings (Li, Dong and Chen, 2012). Further information
about the organizations, existing discounts, and shop locations as well as other information are
transferred to mobile users for their better reliability.
Mobile banking is also connected with selling process through mobile commerce application. It
is necessary because no purchase can be ended without a payment of money. In addition to this,
there are many alternatives for implementing mobile payments such as payments through SMS,
direct mobile billing as well as credit card payments with help of a familiar mobile web interface
at physical POS terminals with NFC technology.
Wireless technology used
Many wireless technologies are used to manage mobile transactions for better suitability
of people. They help the users to transmit the data in appropriate manner (Niranjanamurthy, and
et.al, 2013). Generally, there are three wireless technologies like SMS, Unstructured
Supplementary Service Data (USSD) as well as Wireless Access Protocol (WAP) which are used
for people.
SMS
SMS, or text messaging is the oldest technologies and it is widely used by people. SMS
messages can send one-way notifications like offers, alerts, news from content providers to
users. Further, it can use binary data so it can be wireless delivery system for downloads like
operator logos and encrypted messages (Chong, 2013). In addition to this, SMS provide facilities
of two-way interactive messaging for allowing bank account holders to check their current
balance by writing “BAL” to personal phone number.
In addition to this, main advantages of SMS are very easy and these facilities are
available at everywhere. So this process provides reliability to manage mobile operations in an
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appropriate manner. On the other side, it does not provide effective level of encryption which
creates security issues of mobile users (Li, Dong and Chen, 2012). Along with this, SMS does
not contain any type of personal identification numbers (PIN) which also produces issues for
people.
USSD
USSD is old technique like SMS but it is available for external services in a specific
markets. Further, it is found in various nations like Central America, India, Africa, Europe as
well as South East Asia. USSD set a real-time connection that enable for true session-based
communications for users. In addition to this, it can dispatch answer queries, push notifications
from people as per the available balance in a prepaid mobile account. Further, USSD is also
support mobile phone and use of this facility is very for users (Sadi and Noordin, 2011). Along
with this, advantage of this service is that it can help to store password or mobile PIN protection
because transferred messages are not stored on the any kind of device. On the other side,
charging for facilities is difficult because carriers do not have a developed-in billing mechanism.
Phone of user should be turned on to receive any type of message
Security issues associated with m-commerce
From the past several studies it has also been identified that there are several security
issues associated with the use of m-commerce. Due to this, majority of firms these days are try to
adopting some of the best strategies so that they can maintain consumer trust. One of the major
issues faced by developers is that how they can make it safer for customers and make them feels
comfortable towards it. According to Schierz, Schilke and Wirtz (2010) with the increasing use
of m-commerce customers can get several benefits associated with it. They can keep their
purchasing histories save and also add any future option into cart. It is the best suitable option by
which they can avail their services at the time of requirements. However, with the increasing use
of m-commerce the biggest concern most cell phone users are having about e-commerce service
is related to the security (Chong, 2013). They might face huge difficulties at the time of using
these services due to the trust issues and security concerns. One of the major security issues
faced by users is related to their money transactions as well as network technologies. In this
regards, it can be determine that GSM is a technique which is widely used in majority of
countries. It is considered as a most element of mobile commerce nowadays. There are various
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organizations and sensitive areas of the new mobile commerce such as bank transaction systems
as it engages large amount of money every day (Niranjanamurthy and et.al, 2013). Keeping all
transactions is a biggest challenge for developers. It has been identified from past data that
smartphone users felt exposed in public and concerned that someone is stealing their private and
personal information. Message protection is also a biggest concern within this regards and due to
which somewhere consumers do not feel safe. In addition to this, it can be stated that e-
commerce is a technique which mainly helps in sharing financial transactions as well as
commercial information between two parties. It requires carrying out wireless commercial
transactions using mobile applications within mobile devices (Maity and Dass, 2014). M-
commerce constitutes a subset of all electronic commercial transactions from business to
consumer (B2C) or business to business (B2B). At this time, they must keep SMS sent between
both the parties safe and secure. Further, in order to overcome with all such security threats it is
highly essential to maintain authentication as well as integrity. For the same, it is essential to
verifying the identity of users as well as integrity of data as well as information must be
maintained.
CONCLUSION
From the above study it has been concluded that M-commerce has proven to be one of
the fastest growing sectors. This is a tool which mainly use wireless technology in order to
payment over the internet. Moreover, it has been articulated that there are several security threats
also associated with this sector such as integrity, confidentially for private information, security
at the time of money transactions etc. It might leads to change the mind set to customers towards
the use of m-commerce and making transactions through this.
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REFERENCES
Chong, A. Y. L., 2013. Predicting m-commerce adoption determinants: A neural network
approach. Expert Systems with Applications. 40(2).pp.523-530.
Chong, A.Y.L. and Ooi, K.B., 2012. Predicting consumer decisions to adopt mobile commerce:
Cross country empirical examination between China and Malaysia. Decision Support
Systems. 53(1). pp.34-43.
Li, M., Dong, Z. Y. and Chen, X., 2012. Factors influencing consumption experience of mobile
commerce: a study from experiential view. Internet Research. 22(2).pp. 120-141.
Maity, M. and Dass, M., 2014. Consumer decision-making across modern and traditional
channels: E-commerce, m-commerce, in-store. Decision Support Systems. 61.pp. 34-46.
Maity, M. and Dass, M., 2014. Consumer decision-making across modern and traditional
channels: E-commerce, m-commerce, in-store. Decision Support Systems. 61. pp.34-46.
Niranjanamurthy, M. and et.al., 2013. Analysis of e-commerce and M-Commerce: Advantages,
Limitations and Security issues. International Journal of Advanced Research in
Computer and Communication Engineering. 2(6).
Sadi, A.H.M. and Noordin, M. F., 2011. Factors influencing the adoption of M-commerce: An
exploratory Analysis.
Schierz, P.G., Schilke, O. and Wirtz, B. W., 2010. Understanding consumer acceptance of
mobile payment services: An empirical analysis. Electronic commerce research and
applications. 9(3). pp.209-216.
Sharma, S. and Gutiérrez, J. A., 2010. An evaluation framework for viable business models for
m-commerce in the information technology sector. Electronic Markets. 20(1).pp. 33-52.
Shaw, M. and et.al., 2012. Handbook on electronic commerce.Springer Science & Business
Media.
Sripalawat, J., Thongmak, M. and Ngramyarn, A., 2011.M-banking in metropolitan Bangkok and
a comparison with other countries.The Journal of Computer Information Systems.
51(3).pp. 67.
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