IT430 Assignment No.3 Fall 2011

Question 1: (05)


Assume that you want to buy an IPhone from an online shop. You had ordered an IPhone and made payment using Electronic check. You had forwarded the electronic check in a secure envelope to the payee. How will the payee decrypt the secure envelope to verify electronic check? Also describe the main reason which makes electronic check more secure than Virtual PIN payment system.

Question 2: (05)

Assume that you want to buy a book named “Electronic Commerce” from an online book shop using Virtual PIN payment system. You are already registered with First Virtual and your Virtual PIN is “alpha”. How would this transaction take place? Would you need your credit card number in this transaction? Why Virtual PIN is considered an insecure method for online transactions? Justify your answer.

Question 1: (05)



Assume that you want to buy an IPhone from an online shop. You had ordered an IPhone and made payment using Electronic check. You had forwarded the electronic check in a secure envelope to the payee. How will the payee decrypt the secure envelope to verify electronic check? Also describe the main reason which makes electronic check more secure than Virtual PIN payment system.





A payer uses the electronic check book device in his computer system to generate a blank electronic check after filling the information regarding amount, date etc., and the electronic check is digitally signed by the payer through his private key. A certificate issued by the payer bank authenticating public key of the payer is also attached with the electronic check. This information is then sent to the payee in a secure envelope through email. A secure envelop is created when a user encrypts any information with a symmetric key.

Accordingly the payee, in this case, decrypts the secure envelop by first retrieving the symmetric key and then using that symmetric key to decrypt the information contained in the electronic check. The payee endorses the check using some secure hardware device such as a smart card and forwards the check to the payee’s bank in the form of a secure envelop & this is the main reason which makes electronic check system more secure.

















Question 2: (05)



Assume that you want to buy a book named “Electronic Commerce” from an online book shop using Virtual PIN payment system. You are already registered with First Virtual and your Virtual PIN is “alpha”. How would this transaction take place? Would you need your credit card number in this transaction? Why Virtual PIN is considered an insecure method for online transactions? Justify your answer.





The transaction will take place by these steps

Select order

Merchant

Payment request

Payment

Deposit

Accepted

Receipt

Send goods

Good acknowledgement



And If you want to buy a book from online shop using virtual PIN payment system & you are already registered then u don’t have to put your credit card number in this transaction.

Virtual pin is insecure because pre-registration of the buyer and the merchant with FV is mandatory in this set up. Moreover, maintaining a bank account (in case of merchant) and having a credit card (in case of a buyer) is also essential part of this system. One can say that the merchant side is less secured in the transaction because the goods are delivered by the merchant before the payment is actually received.

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