Trust and Risk in Internet Commerce

by L. Jean Camp

• ISBN13: 9780262531979
• ISBN10: 0262531976
• Format: Paperback
• Copyright: 2001-09-01
• Publisher: Mit Pr

Summary

As Internet-based commerce becomes commonplace, it is important that we examine the systems used for these financial transactions. Underlying each system is a set of assumptions, particularly about trust and risk. To evaluate systems, and thus to determine one's own risks, requires an understanding of the dimensions of trust: security, privacy, and reliability. In this book Jean Camp focuses on two major yet frequently overlooked issues in the design of Internet commerce systems-trust and risk. Trust and risk are closely linked. The level of risk can be determined by looking at who trusts whom in Internet commerce transactions. Who will pay, in terms of money and data, if trust is misplaced? When the inevitable early failures occur, who will be at risk? Who is "liable" when there is a trusted third party? Why is it necessary to trust this party? What exactly is this party trusted to do? To answer such questions requires an understanding of security, record-keeping, privacy, and reliability. The author's goal is twofold: first, to provide information on trust and risk to businesses that are developing electronic commerce systems; and second, to help consumers understand the risks in using the Internet for purchases and show them how to protect themselves. Rather than propose a single model of an Internet commerce system, the author provides the information and insights needed by merchants and consumers as they develop the Internet for commerce.

Author Biography

L. Jean Camp is Assistant Professor at Harvard University's John F. Kennedy School of Government

Table of Contents

Preface	ix
Introduction	1	(4)
The Internet	5	(42)
What Is the Internet?	5	(1)
What Are Its Origins?	6	(3)
Where Is the Internet?	9	(5)
Who Is on the Internet?	14	(4)
How Does the Internet Work?	18	(12)
Layers of Protocol and Stages of a Transaction	30	(1)
Commercial Transactions	31	(5)
Evaluating Information On-line	36	(4)
Pricing and Quality in Internet Commerce	40	(3)
Convergence and the Internet	43	(4)
Money	47	(10)
Functions of Money	47	(4)
Digital Information Money	51	(3)
Money Vendors	54	(3)
Basic Cryptography	57	(8)
Private Key Cryptography	60	(1)
Public Key Cryptography	61	(2)
Hash Functions	63	(2)
Security Goals	65	(14)
Threats to Electronic Information Systems	66	(2)
Confidentiality	68	(2)
Availability	70	(2)
Scalability	72	(1)
Authentication	73	(2)
Integrity	75	(1)
Nonrepudiation	76	(3)
Key Management Is Trust Management	79	(20)
Symmetric Key Management	80	(3)
Asymmetric Key Management	83	(1)
Digital Certificates	83	(9)
Key Length	92	(1)
Pseudonymity and Anonymity	93	(2)
Microdata Security	95	(4)
Privacy Perspectives	99	(16)
Law Enforcement: Trust Us	101	(4)
The Business Community: Trust Me	105	(2)
System Designers: Ignore Me	107	(1)
Social Critics: Trust for the Common Good	108	(2)
Europeans: Limit Trust	110	(5)
Privacy in Law, Privacy in Practice	115	(30)
State Law	117	(4)
Federal Law	121	(9)
Privacy and Information Technology	130	(15)
Data Reporting: Trusting the Government	145	(24)
Required Information Reporting	145	(7)
Reporting Examples	152	(5)
Reconsidering Requirements	157	(6)
Cryptography Policy	163	(3)
Disclosure Summary	166	(3)
Transactions	169	(14)
Reliability	170	(4)
Scalability	174	(1)
Divisibility	175	(1)
Interoperability	176	(3)
Open Systems, Standards, and Protocols	179	(4)
Examination of Internet Commerce Systems	183	(24)
Distinctions among Commerce Systems	184	(2)
Analyses of Various Systems	186	(4)
Example Analyses	190	(1)
Credit Cards: A Notational System	190	(9)
Cash: A Token System	199	(5)
Summary	204	(3)
Internet Currencies	207	(48)
Notational Currencies	207	(1)
First Virtual	207	(8)
Secure Sockets Layer	215	(5)
Secure Electronic Transaction	220	(10)
Token Currencies	230	(2)
Digicash	232	(5)
MicroMint	237	(9)
Millicent	246	(4)
Summary	250	(5)
The Coming Collapse in Internet Commerce	255	(8)
References	263	(12)
Index	275