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How Fraud Impacts an AIS

a. E-commerce sites and their security - is there any impact of the cost of their security on the prices they charge? As more and more consumers make purchases online, e-commerce continues to grow. With this growth comes an increased prevalence of threats to e-commerce sites. As such, security is a significant issue for organizations that operate an e-commerce site, specifically security protecting the site's online payment system. "Some of these attacks have utilized vulnerabilities that have been published in reusable third-party components utilized by websites, such as shopping cart software. Other attacks have used vulnerabilities that are common in any web application, such as SQL injection or cross-site scripting" (Mookhey, 2004). For this reason, security must be built into the web application, beginning with the design phase. This added focus on creating secure and impenetrable e-commerce sites requires significant additional costs during the site's development phase. These additional costs must be figured into start up costs and offset by increased pricing to the consumer. In addition,


The first is a protected internal network, that provides both physical and administrative security that protects the transmission. Fraudulent activity can also negatively affect automatic reordering of inventory. Impact of automatic reordering of inventory/monitoring inventory levels - Inventory shortages/shrinkage for a company who uses self-checkouts, has large inventory, etc. This is a fairly secure method of communicating. The least secure form of authentication, and one of the most common, is the use of a login name/password sequence. These security concerns need to be taken into consideration and weighed against the benefits achieved when allowing remote access to an internal network and sensitive information. This continued development adds additional costs to site maintenance, which is then passed onto the consumer as increases to pricing. A firewall separates the remote workstation and the employer's network or server. However, auditing companies utilizing remote access to a organization's internal network face the same security concerns as an employee remotely accessing their employer's network, via the Internet. In addition, organizations with larger inventories are more likely to have larger ordering parameters built into their system, allowing for more time between orders being placed, and a longer time for the shrinkage to negatively impact actual inventories. This security can be compromised if the authentication measure is compromised. Self-checkout involves consumers scanning and paying for their items, without the assistance of a cashier. Just as facilitating employees to work remotely has substantial benefits, benefits are had with facilitating auditing companies with remote access.

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