The following risks are involved in online transactions:
- Transaction risks: Transaction risks involved Eire 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.
© 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.
- Risk of impersonation : The possibility of impersonation is very high in online business transactions because a person may use stolen credii/debit card and buy products. The seller has no means to authenticate the genuiness of such a practice.
- 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.
- Data storage and transmission risks : Data are stored in invisible form. Therefore, stealing or manipulating data is very easy for some persons who may get unauthorised access to it. Further, on the internet there are very high chances of hacking data during data transmission due to possible loopholes in operating system, controlling computer operations and transmission of data.
- Risk of threat to intellectual property and privacy : Once the information is on the internet, it is difficult to protect it from being copied. The information available on internet may be copied and used for one’s personal gain. The privacy of users is threatened as a host of advertising and promotional literature may be dumped in their inboxes.