Thao Le

ITS 380

Sing-Ping Tucker



Chapter 5: E-commerce security and payment systems

Case study

1.     What are the three types of mobile payments, and how do they differ?

        Proximity payment systems (Apple Pay, Google Pay, Samsung Pay): is used to pay for goods and services with your mobile phone at a physical point-of-sale terminal. This method of payments began from a mobile phone that uses Near Field Communication (NFC) technology.

        Brand proximity payment systems also use proximity technology but only at a single merchant store such as Walmart.

        P2P payment (payment among individuals) use to transfer money among users who use a proprietary app such as Venmo or Zelle.


2.     Who are the largest adopters of mobile payment methods? Why?

The largest adopters of mobile payment methods are Millennials who were born around the year 2000, a generation Yer. Unlike their parents, they like to use the mobile payments of all kinds rather than using checks or cash.  With the

changing of time, more people use mobile banking apps to pay their transaction rather than going to a bank branch. In 2017, banks shut 1700 local branches, the largest decline in history, as customers moved online.


3.     Why are digital wallets provided by Apple, Google, and Samsung not growing as fast as expected?

Because these companies charge a fee to support their systems when people pay through their apps. Furthermore, merchantsí point-of-sale terminals need to be NFC-enabled, and merchants need to install their software to accept payment.

Although adoption rates are high, fewer than 30% of those who actually use them on a regular basis during the year. Anyone who buys a smartphone is encouraged to install the payment apps but few actually use them in large part because

merchants have been slow adopters of NFC equipment while customers still find credit and debit cards to be convenient.


4.     What is Zelle and why did it grow so fast in the last few years?

Zelle is a digital payment sevice that allows bank customers to make digital payment and transfers to others account using an app and also receive payment from others. Users need to provide exactly phone number or email to the sender if

they want to get money. The transfers are nearly instantaneous and are referred to as instant payment, unlike other digital payments which need 2-3 business days to complete a transaction. Transfers and payments among existing account

are free. In 2017, Zelle introduced Zelle QuickPay and got 86 million mobile banking customers at 30 national banks. In recently, Zelle has been growing so fast because payments are free and transfer funds in a few minutes, quicker than

overnight for PAypal, Venmo or Square Cash. 




1.     Imagine you are the owner of an e-commerce website. What are some of the signs that your site has been hacked? Discuss the major types of attacks you could expect to experience and the resulting damage to your site. Prepare a brief summary presentation.

When my site has been hacked, there are several changing on my website. Firstly, Ransomware messages are one of the most apparent signs of network attacks because they often appear on the front page of sites and restrict access to

content. For example, when you access a website, a strange page pop-up and announce that you win a prize. That is one kind of virus. When customers click on that page and provide important information including credit card information,

PIN number, they will lose their money. Therefore, customers' complaints would increase if there is something unusual. Secondly, some content on my website is missing or the URLs do not work. I can notice that my website is not

working properly or even the look of the website can be changed from its original version. Finally, the site might not be found in the browser. The most common types of attacks that I could expect are credit card fraud, spam, denial of

service attack, malware, hacking and cybervandalism, data breach. When the site has been hacked, it causes many troubles for an e-commerce website. Businesses waste of time and money to take it back. Furthermore, they have to

temporarily stop selling activities online to fix it. The most important issue is the effect on customers. They might feel to disbelieve when they go shopping online on my website.   

2.     Given the shift toward m-commerce, do a search on m-commerce (or mobile commerce) crime. Identify and discuss the security threats this type of technology creates. Prepare a presentation outlining your vision of the new opportunities for cybercrime that m-commerce may provide.

Nowadays, there are more and more people use the smartphone to shop online rather than using a computer. So m-commerce appears as a new innovation of e-commerce. It is followed by an increase in e-commerce crime as known as

cybercrime. Here are some threats this type of technology creates that I have found out:

        Ricky QR code: QR code gives customers an easy way to find out information about products but it is not always safe for them. It is unsafe when users scan code without know where it came from. Therefore, QR codes are leading to sites that download a virus or malware onto the userís mobile device.

        Viruses and malware: While viruses and malware that attack mobile phones are still rare in comparison to those designed to attack PCs, the growing number of smartphones and tablets has become a new target for criminals. These viruses try to attack and steal information such as credit card numbers, SSN from usersí phones.

        Unsecured Wi-Fi threats: When users access to public Wi-Fi such as in malls or coffee shops, it creates many opportunities for many criminals easy access to your information if they are not careful. Some tests have found that most Wi-Fi networks can be hacked in five minutes or less, so mobile users should not do any private business on their cells while using public Wi-Fi.

        Smishing: Smishers try to trick users to reveal their private information by sending their victims an SMS (text) message, baiting them into divulging personal details like a bank account, credit card, or social security numbers. Smishers often pose as businesses through advertisement, or sometimes even trying to win a (fake) prize. Reports recently said that smishing is one of the most common reasons for criminal data loss.