'Online business transactions are subject to a number of threats and risks'. Explain any five such risks involved.
'Online business transactions are subject to a number of threats and risks'. Explain any five such risks involved.
The following risks are involved in online transactions :
1. Transaction risks : Transaction risks involved are as follows :
(a) Default on order implying that the seller may deny that a customer has placed an order.
(b) Default on delivery implying that the goods have either not been delivered or delivered at a wrong address.
(c) Delivery of inferior goods implying that goods of inferior quality have been delivered.
(d) Default on payment implying that the customer refuses to pay and claims that he has made the payment.
2. Risk of impersonation: The possibility of impersonation is very high in online business transactions because a person may use stolen credit/debit card and buy products. The seller has no means to authenticate the genuiness of such a practice.
3. Fraudulent practices by businessmen: There are many websites which are fake in nature. Fabulous tempting offers are made by these websites to live customers. Before customers come to know about the reality of these websites, the website owners might have defrauded many others.
The following risks are involved in online transactions :
1. Transaction risks : Transaction risks involved are as follows :
(a) Default on order implying that the seller may deny that a customer has placed an order.
(b) Default on delivery implying that the goods have either not been delivered or delivered at a wrong address.
(c) Delivery of inferior goods implying that goods of inferior quality have been delivered.
(d) Default on payment implying that the customer refuses to pay and claims that he has made the payment.
2. Risk of impersonation: The possibility of impersonation is very high in online business transactions because a person may use stolen credit/debit card and buy products. The seller has no means to authenticate the genuiness of such a practice.
3. Fraudulent practices by businessmen: There are many websites which are fake in nature. Fabulous tempting offers are made by these websites to live customers. Before customers come to know about the reality of these websites, the website owners might have defrauded many others.
