1.
Define Intellectual Property Protection and E-Commerce Asset Protection
Intellectual Property Protection (IPP):
Intellectual Property (IP) refers to creations of the human intellect such as inventions,
literary and artistic works, designs, symbols, names, and images used in commerce. In the
digital world and especially in e-commerce, intellectual property plays a major role
because businesses rely heavily on digital assets and creative content to build their brand
and market their products.
Intellectual Property Protection is the legal mechanism to secure the rights of creators
and owners of IP, ensuring that others do not use, replicate, or profit from it without
proper authorization. In the context of e-commerce, intellectual property includes:
Software Code: Proprietary algorithms and backend systems of e-commerce platforms.
Logos, Brand Names, and Trademarks: Vital for brand identity and customer trust.
Multimedia Content: Images, videos, product descriptions, and layouts.
Business Processes and Databases: Which can be trade secrets.
Types of Intellectual Property Rights:
Copyright: Protects original works like website content, design, software code, videos,
images, and audio.
Patent: Grants exclusive rights for inventions or innovative technology used in e-
commerce applications.
Trademark: Protects logos, slogans, domain names, and brand identity.
Trade Secrets: Covers confidential business information, such as algorithms, formulas, or
strategic plans.
E-Commerce Asset Protection:
E-commerce assets refer to all the resources—tangible and intangible—that support and
enable the functioning of an online business. These include:
Web applications and hosting infrastructure.
Databases containing sensitive customer and transaction data.
Digital content and software tools.
Payment gateways and transactional logs.
Intellectual property as mentioned above.
To protect these assets, companies use both technical and legal measures.
Technical measures include:
Firewalls
Antivirus software
Data encryption
Intrusion detection systems
Regular software updates and backups
Legal measures include:
Copyright and trademark registration
Terms of use and privacy policies
Non-disclosure agreements (NDAs)
2. What are the Different Measures of Implementing Security for E-Commerce?
E-commerce platforms deal with vast amounts of sensitive data, such as customer
personal details, financial information, and transaction records. Ensuring security in this
domain is critical to maintain trust, privacy, and operational integrity.
Major Security Measures in E-Commerce:
Encryption:
Ensures that sensitive data is transmitted in a coded format, preventing unauthorized
access.
Secure Socket Layer (SSL) and Transport Layer Security (TLS) are widely used protocols.
Encrypts information such as login credentials, credit card numbers, and transaction
details.
Digital Signatures:
Provide authentication, integrity, and non-repudiation.
Uses asymmetric encryption (private/public key pair) to ensure the sender is genuine and
the content is unaltered.
Digital Certificates:
Issued by Certificate Authorities (CAs).
Validate the authenticity of a website or entity.
Used in HTTPS websites for establishing secure connections.
Firewalls and Intrusion Detection Systems (IDS):
Firewalls monitor and filter traffic between trusted and untrusted networks.
IDS detects abnormal patterns that may signify a breach or attack attempt.
Two-Factor Authentication (2FA):
Combines two different types of authentication (password + OTP or biometric).
Adds an extra layer of protection against unauthorized access.
Secure Payment Gateways:
Intermediaries between merchants and banks that ensure secure payment processing.
Examples: Razorpay, PayPal, Stripe.
Regular Updates and Patches:
Keeping software and systems up to date is vital for protecting against known
vulnerabilities.
User Awareness and Education:
Educating customers and employees about phishing, social engineering, and safe
browsing practices.
Access Control and Role-Based Authentication:
Only authorized users can access specific areas of the system.
Helps reduce internal threats.
Data Backup and Disaster Recovery Plans:
Ensures data can be recovered in case of attack, loss, or failure.
3. What is an Electronic Payment System? Explain Electronic Cash, Electronic Wallet,
Smart Card, and Credit Card System in Detail
Electronic Payment System (EPS):
An electronic payment system refers to the digital method of transferring money over the
internet without physical cash or paper-based documentation. It allows customers to buy
goods and services from e-commerce platforms efficiently and securely.
Types of Electronic Payments:
A. Electronic Cash (E-Cash):
E-cash is the digital version of real currency. It is stored electronically on the user’s device
and can be used for online purchases.
Features:
Anonymous transactions
Instant settlement
Suitable for micro-transactions
Working:
A user purchases e-cash from a bank and stores it digitally.
During the transaction, e-cash is sent directly to the seller.
The seller deposits e-cash back into the bank.
Examples: Bitcoin, earlier systems like DigiCash.
B. Electronic Wallet (E-Wallet):
An e-wallet is a software-based system that stores a user’s payment information securely
and helps make quick transactions online.
Components:
Personal identification (name, email)
Payment information (card numbers, bank account)
Security (passwords, PINs, biometric verification)
Types:
Client-side Wallet: Installed on the user's device (e.g., Google Pay, Paytm).
Server-side Wallet: Stored on the service provider’s server (e.g., Amazon Pay).
Functions:
Store money or link bank accounts
Enable fast, secure transactions
Offer loyalty points or discounts
C. Smart Card:
A smart card is a physical card embedded with a microprocessor chip. It stores data
securely and can perform secure transactions both online and offline.
Types:
Contact Cards: Inserted into a card reader.
Contactless Cards: Use Near Field Communication (NFC) or RFID to transmit data.
Applications:
Banking
Health care (e.g., medical records)
E-commerce and public transportation
Advantages:
High security
Portable and reusable
Can store multiple credentials
D. Credit Card System:
Credit cards allow users to borrow money from the issuing bank to make purchases. They
are the most widely used method for online transactions.
Working Process:
User enters credit card information during checkout.
Payment gateway forwards the data to the acquiring bank.
Bank seeks authorization from the card network (Visa, MasterCard).
Issuing bank approves or declines based on available credit.
Transaction is completed and logged.
Advantages:
Consumer convenience
Offers fraud protection and insurance
Accepted globally
Disadvantages:
High risk of fraud if data is leaked
Interest charges on unpaid balances
4. Insurance Transaction Integrity and Protecting Client Computer
Insurance Transaction Integrity:
In the insurance sector, transaction integrity is vital to ensure that online processes such
as policy issuance, claim processing, and premium payments are conducted without
errors, tampering, or fraud.
Key Concepts:
Accuracy: All data entered and stored must be correct.
Completeness: All steps in the transaction must be completed.
Authentication: Parties involved must be verified (user, agent, company).
Non-repudiation: Once a party performs a transaction, they cannot deny it later.
How to Ensure Transaction Integrity:
Use of Digital Signatures and Encryption to protect contracts and client data.
Audit Trails: Track every transaction step to detect tampering or inconsistencies.
Secure Web Services: Ensures that all communication between clients and insurance
platforms is encrypted.
Time-stamping: Important for validating when a transaction occurred.
Protecting Client Computer:
Client-side security is just as important as server-side security. If a customer’s device is
compromised, attackers can steal personal data, bank details, and login credentials.
Threats to Client Computers:
Phishing attacks
Malware (viruses, ransomware)
Spyware or keyloggers
Unsecure public Wi-Fi
Security Measures:
Antivirus Software: Detects and removes harmful programs.
Firewalls: Block unauthorized access to/from the user’s device.
Secure Browsing: Use HTTPS websites and avoid clicking unknown links.
Software Updates: Regular updates fix known vulnerabilities.
Two-Factor Authentication: Adds a second layer of security after the password.
User Awareness: Users should avoid downloading files from untrusted sources or
responding to unknown emails.
