Chapter 18: Doing Business on the Internet Business Data Communications, 4e

2 Security: The Key to E-Commerce 8Communications 8Encryption 8Privacy 8payment systems

Business Data Communications, 4e 3 SSL & TLS 8Secure Socket Layer 8Transport Layer Security 8Protocols that sit between the underlying transport protocol (TCP) and the application

Business Data Communications, 4e 4 Secure Socket Layer (SSL) 8Originated by Netscape 8TLS has been developed by a working group of the IETF, and is essentially SSLv3.1 8Provides security at the “socket” level, just above the basic TCP/IP service 8Can provide security for a variety of Internet services, not just the WWW

Business Data Communications, 4e 5 SSL Implementation 8Focused on the initialization/handshaking to set up a secure channel 8Client specifies encryption method and provides challenge text 8Server authenticates with public key certificate 8Client send master key, encrypted with server key 8Server returns an encrypted master key 8Digital signatures used in initialization are based on RSA; after initialization, single key encryption systems like DES can be used

Business Data Communications, 4e 6 Characteristics of On-Line Payment Systems 8Transaction types 8Means of settlement 8Operational characteristics 8Privacy and security 8Who takes risks

Business Data Communications, 4e 7 Secure Electronic Transactions 8SET is a payment protocol supporting the use of bank/credit cards for transactions 8Supported by MasterCard, Visa, and many companies selling goods and services online 8SET is an open industry standard, using RSA public- key and DES single-key encryption

Business Data Communications, 4e 8 SET Participants & Interactions

Business Data Communications, 4e 9 Ideal Components of Electronic Cash 8Independent of physical location 8Security 8Privacy 8Off-line payment 8No need for third-party vendor 8Transferability to other users 8Divisibility 8“Making change”

Business Data Communications, 4e 10 E-Cash 8Created by David Chaum in Amsterdam in Maintains the anonymity of cash transactions 8Users maintain an account with a participating financial institution, and also have a “wallet” on their computer’s hard drive 8Digital coins, or tokens, are stored in the wallet

Business Data Communications, 4e 11 Electronic Commerce Infrastructure 8Intrabusiness 8Intranet based 8Supports internal transactions and transfers 8Business-to-Business (BTB or B2B) 8Extranet based 8Business-to-Consumer (BTC or B2C) 8Internet based

Business Data Communications, 4e 12 Importance of BTB Commerce

Business Data Communications, 4e 13 Firewalls 8Used to provide security for computers inside of a given network 8All traffic to/from network passes through firewall 8Only authorized traffic is allowed through 8Firewall itself is a secure system 8Firewall performs authentication on users 8Firewall may encrypt transmissions

Business Data Communications, 4e 14 Free Trade Zones (FTZ) 8Area where communication and transactions occur between trusted parties 8Isolated from both the external environment and the enterprise’s internet network 8Supported by firewalls on both ends 8Inside the FTZ, all communications can be in clear mode without any encryption 8Necessary because logical boundaries between BTB and IB are becoming fuzzy.