What is e-Banking & e-Business Risk?
It is increasingly common for business to be conducted online. But although electronic banking and business can make commerce much easier, this new way of working also poses new challenges and risks for businesspeople.
Other People Are Reading
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E-Banking: Risks for Financial Organizations
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Financial organizations offering e-banking are at risk from factors including online fraud and disruptions to their information technology systems. Organizations offering credit via e-banking need to ensure that customers are who they say they are, as well as effectively monitor any third-party agents contracted to facilitate online business.
Identity Theft and E-Business
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Risks associated with e-business include identity theft and extortion. Identity thieves target personal information, such as credit card details, to perpetrate fraud and other crimes. The Federal Trade Commission estimate that 9 million Americans per year are affected by identity theft. In one three-month period during 2005, more than 3 million personal data records were reported stolen or lost in the United States because of security breaches.
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E-Security: Mitigating Actions for Businesses
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Businesses working online should conduct full risk assessments. This should cover physical threats to IT equipment such as fire risks and technical problems such as software failure. The dangers of viruses and spyware should be included, and the staff should be made aware of such risks. Businesses are advised to protect their systems by developing an e-security policy.
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References
- "All Business": Managing e-business risk to mitigate loss
- Federal Financial Institutions Examination Council: E-Banking Risks
- Federal Financial Institutions Examination Council: Risk Management of E-Banking Activities
- "Business Link": The value of implementing a security policy
- "Business Link": Managing risk in e-commerce
- Federal Trade Commission: About identity theft
Resources
- Photo Credit business colleagues preparing for business meeting image by Vladimir Melnik from Fotolia.com
