Internet Privacy and Security: Online Retailers' Response to Consumer Concerns - Prof. Tim, Exams of Grammar and Composition

Download Internet Privacy and Security: Online Retailers' Response to Consumer Concerns - Prof. Tim and more Exams Grammar and Composition in PDF only on Docsity! Feng Ouyang Mr. Giles ENGL 1102 b April 30, 2007 Internet Privacy and Security: An Examination of Barriers to E-Commerce The Federal Trade Commission has declared that privacy and security of consumer information will become two major issues that stem from the rapid growth in electronic commerce (e-commerce), particularly in term of consumer-related commerce on the internet. This research paper focuses on how online retailers respond to consumer concerns over privacy and security issues and what they do to increase consumer willingness to engage in electronic commerce (Turner and Dasgupta). In is only being this past decade that the global economy began to see the rise of e- commerce. Onset by the expansion of the internet and its relative accessibility, the ideas of conducting business online and by setting up virtual malls filled with unlimited quantity of products. Businesses were established online to reap the benefits of the global expansion of the Internet. As more and more online business were being established, and began conducting business online, more and more consumers were drawn to online retailers, as they slowly realized that online shopping has two appeals to them. The first being the convenience of shopping at home, the second being the platform of an extremely competitive price. Afterward, consumers could complete transactions online, transferring private information to online retailers in order to set up an account and purchase products online. Progressively, more personal information began to be submitted online; it increased consumer’s risk of personal information being stolen as internet by itself does not have any guarantee of protecting information submitted online from being intercepted by others. For this reason, concerns over issues such as privacy and security began to take an adverse effect on consumers who does shopping online. According to a survey conducted by the Survivability over Security (SOS) Research Group at Illinois State University, over 43% of those surveyed cited concerns over the privacy of the data they provide to online retailers. Additionally, the Forrester Research found that 59% of young consumers’ primary reason for not conducting business online was the concern about the use of personal credit card information online (Turner, Zavod, and Yurcik). In response to consumer trepidation in doing transaction online, online retailers began to implement a series of extra measures, including but not limited to adding extra securities and issuing privacy statement to boost and increase consumer confidence in online transaction. Securities, in this case, are defined as the protection of data against accidental or intentional disclosure to unauthorized persons (Udo). Since information transmitted online does not go directly from a consumer’s computer to online retailer’s web server, all information that is being broadcast through the internet may be subject to interception by others, which then increases the chance of a consumer’s identity being stolen. By the release of Federal Trade Commission’s report on identity theft, in 2005, there are more 250,000 documented cases on identity theft, 200% increase from the number of documented cases on identity theft in 2001 (“Identity”). With such an alarming statistic, it is no wonder consumers are increasingly worried about the security of personal information given through the Internet to online retailers. To alleviate this concern, online retailers implement extra securities, including usage of a secure network connection and data encryption during transaction to minimize the risk of consumer’s personal information from being hacked and disclosed to others. One of the most widely used security measure used by online retailers is the use of Secure Socket Layer (SSL), a protocol of your personal information to protect your privacy.’ Once joining the program, the business is allowed to post the third party privacy ‘seal’ indicating their participation.” Even though the true effectiveness of the privacy seal programs cannot be proven, a 2001 study conducted by the Harris poll reported that when consumers notice privacy seals, they consider them important; therefore, they will be more eager to provide personal information to the site than those that do not have the seals. Because the US federal government has been advocating a policy of self-regulation rather than government regulation (Turner and Dasgupta), it is up to the industry, in particular, the merchants of e-retailers to adapt and implement policies that will safeguard the privacy of the consumers (Belanger, Hiller, and Smith). Although there aren’t many things that consumers can do once theirs personal information is being shared with other third party due to mergers, acquisitions, or even changes in privacy policies of the online retailers, however, with the seal programs, consumers can indeed have a source of reassurance because the program itself is very adaptable and capable of giving consumers the power to change and choose with whom their personal information is to be shared. In addition to the seal programs that online retailers join to promote consumer confidence, there are also tips that consumers should be aware of and follow because it can greatly reduce the possibility of personal information from being shared with others (Belanger, Hiller, and Smith). In McCandlish’s article, “EFF’s Top 12 Ways to Protect Your Online Privacy,” he offers 12 tips on how to protect one’s privacy when connected online to the Internet. In his first tip, he mentions that one should not reveal personal information inadvertently. In this tip, he argues that one should change the preferences or options within the web browser so that no personal information is transmitted when surfing through the web pages on the Internet. In his second tips, he mentions that cookies, which are tidbits of information stored on one’s hard drive, even when they are helpful in adding a better, user friendly interface to the web browsing experience, may compromise one’s privacy. Because of it, he argued that one should turn their cookies off, except from those online retailers that require it and those whom you trust, preventing web sites from storing tidbits of information, such as your surfing habits, in your hard drive. Due to concerns over cookies are being secretly planted on one’s hard drive without users knowing about it, the browsers nowadays all have a cookie manage software and service that can control each and every individual cookies. His tip number three implies that one should keep a “clean” e-mail just for the purpose of the preventing from being the subject of scam, spammed, and virus. In his argument, he says that using a side account when order online is safe practice because it prevent the one from being spammed, which is being send a lot of junk mails that clutter up the inbox in one’s mail. His next tip says those don’t reveal personal details to strangers or just met “friends.” This tip is a very common tip which everyone should be very aware of it. Because the speed of internet communication is often mirrored with the rapid online relationships and friendships, you should be more careful in meeting ones that you meet on the internet. His next tip mention that because of one’s work environment may be monitor, avoid the unnecessary e-mail sending out at work because you might risk compromising one’s bank or credit card information. Due to that facts that spammers nowadays often spam for no reasons, one you detect a series of mail from senders that you don’t know, you should immediately go to the web sites that host the deliverer of these mails to see if you can unsubscribe from their mailing list, if you can’t, then you should probably, with good reasons to doubts, that you are subject to spams and you should immediate change the setting on the e-mail program to block the sender, putting the sender on the “black list.” Another one of McCandlish’s tip on protecting privacy is be aware of sites that offered some sort of rewards or prizes in exchange for your contact information or other personal details because most of the time, you will not win and you will risk the facts of putting your information for direct marketing purpose, which is a fairly high profitability for those marketers. And the last thing that should be the mention is be conscious of home computer security. Before even began surfing on the Internet, one must make sure that you have all the necessary internet security suites: antivirus, firewall, and spyware remover (Belanger, Hiller, and Smith). Of all these security software mention, it doesn’t mean that one need to spend money to buy them in order to be protected from internet threats. There is plenty of free software from each category that performed well or exceeds the paid version of the internet security suite. For example, there are AVG antivirus and Avast antivirus, which both are commercial grade but are offered for free for home users. Zonealarm is a very good firewall protection, protecting your computer from being hacked into and prevent intrusion. And last but not least are the Spybot Search & Destroy and Adware Standard Edition Home, which are decent spyware remover software. In conclusion, I believe that even without government regulations, the industry as well as the market of e-commerce is fully capable of implementing, promoting and ensuring the security and privacy of consumers’ personal information. And if there is any breach or compromise in data security, I am sure that businesses as well as the market will inform consumers in a timely manner regarding the breach of personal information being leaked out.