E-commerce 2021: business. technology. society., 16e (Laudon/Traver)

Chapter 5 E-commerce Security and Payment Systems

1) Confidentiality is sometimes confused with:

A) privacy.

B) authenticity.

C) integrity.

D) nonrepudiation.

Answer: A

Difficulty: Easy

AACSB: Application of knowledge

Learning Objective: 5.1: Understand the scope of e-commerce crime and security problems, the key dimensions of e-commerce security, and the tension between security and other values.

2) ________ is the ability to ensure that e-commerce participants do not deny their online actions.

A) Nonrepudiation

B) Authenticity

C) Availability

D) Integrity

Answer: A

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.1: Understand the scope of e-commerce crime and security problems, the key dimensions of e-commerce security, and the tension between security and other values.

3) ________ is the ability to identify the person or entity with whom you are dealing on the Internet.

A) Nonrepudiation

B) Authenticity

C) Availability

D) Integrity

Answer: B

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.1: Understand the scope of e-commerce crime and security problems, the key dimensions of e-commerce security, and the tension between security and other values.

4) Which of the following is an example of an integrity violation of e-commerce security?

A) A website is not actually operated by the entity the customer believes it to be.

B) A merchant uses customer information in a manner not intended by the customer.

C) A customer denies that he is the person who placed the order.

D) An unauthorized person intercepts an online communication and changes its contents.

Answer: D

Difficulty: Moderate

AACSB: Analytical thinking

Learning Objective: 5.1: Understand the scope of e-commerce crime and security problems, the key dimensions of e-commerce security, and the tension between security and other values.

5) ________ is the ability to ensure that an e-commerce site continues to function as intended.

A) Nonrepudiation

B) Authenticity

C) Availability

D) Integrity

Answer: C

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.1: Understand the scope of e-commerce crime and security problems, the key dimensions of e-commerce security, and the tension between security and other values.

6) Which of the following is an example of an online privacy violation?

A) your e-mail being read by a hacker

B) your online purchasing history being sold to other merchants without your consent

C) your computer being used as part of a botnet

D) your e-mail being altered by a hacker

Answer: B

Difficulty: Moderate

AACSB: Analytical thinking

Learning Objective: 5.1: Understand the scope of e-commerce crime and security problems, the key dimensions of e-commerce security, and the tension between security and other values.

7) ________ is the ability to ensure that messages and data are only available to those authorized to view them.

A) Confidentiality

B) Integrity

C) Privacy

D) Availability

Answer: A

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.1: Understand the scope of e-commerce crime and security problems, the key dimensions of e-commerce security, and the tension between security and other values.

8) Which of the following is not a key factor for establishing e-commerce security?

A) data integrity

B) technology

C) organizational policies

D) laws and industry standards

Answer: A

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.1: Understand the scope of e-commerce crime and security problems, the key dimensions of e-commerce security, and the tension between security and other values.

9) According to Ponemon Institute's 2019 survey, which of the following was not among the causes of the costliest cybercrimes?

A) malicious insiders

B) web-based attacks

C) denial of service

D) botnets

Answer: D

Difficulty: Moderate

AACSB: Information technology

Learning Objective:

5.1: Understand the scope of e-commerce crime and security problems, the key dimensions of ecommerce security, and the tension between security and other values.

10) Typically, the more security measures added to an e-commerce site, the slower and more difficult it becomes to use.

Answer: TRUE

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.1: Understand the scope of e-commerce crime and security problems, the key dimensions of e-commerce security, and the tension between security and other values.

11) Why is it difficult to accurately estimate the actual amount of cybercrime?

Answer: It is difficult to accurately estimate the actual amount of cybercrime, in part, because many companies are hesitant to report it due to the fear of losing the trust of their customers, and because even if crime is reported, it may be difficult to quantify the actual dollar amount of the loss.

Difficulty: Easy

AACSB: Analytical thinking; Written and oral communication

Learning Objective: 5.1: Understand the scope of e-commerce crime and security problems, the key dimensions of e-commerce security, and the tension between security and other values.

12) Which of the following statements about data breaches in 2019 is not true?

A) According to the Identity Theft Resource Center, the number of breaches in 2019 increased by 17% from 2018.

B) According to the Identity Theft Resource Center, the breaches exposed almost 165 million sensitive records, such as social security numbers and financial account data.

C) According to the Identity Theft Resource Center, employee error was the leading cause of data breaches.

D) According to the Identity Theft Resource Center, data breaches involving the business sector represented about 44% of all breaches.

Answer: C

Difficulty: Difficult

AACSB: Application of knowledge

Learning Objective: 5.2: Identify the key security threats in the e-commerce environment.

13) Which of the following is a brute force attack which hackers launch via botnets and automated tools using known user name and password combinations?

A) credential stuffing

B) phishing

C) pharming

D) MitM attack

Answer: A

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.2: Identify the key security threats in the e-commerce environment.

14) Which of the following did the Internet Advertising Bureau urge advertisers to abandon?

A) HTML

B) HTML5

C) Adobe Flash

D) Adobe Acrobat

Answer: C

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.2: Identify the key security threats in the e-commerce environment.

15) Accessing data without authorization on Dropbox is an example of a:

A) social network security issue.

B) cloud security issue.

C) mobile platform security issue.

D) sniffing issue.

Answer: B

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.2: Identify the key security threats in the e-commerce environment.

16) Conficker is an example of a:

A) virus.

B) worm.

C) Trojan horse.

D) botnet.

Answer: B

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.2: Identify the key security threats in the e-commerce environment.

17) Which of the following is the leading cause of data breaches?

A) theft of a computer

B) accidental disclosures

C) hackers

D) DDoS attacks

Answer: C

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.2: Identify the key security threats in the e-commerce environment.

18) Software that is used to obtain private user information such as a user's keystrokes or copies of e-mail is referred to as:

A) spyware.

B) a backdoor.

C) a browser parasite.

D) adware.

Answer: A

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.2: Identify the key security threats in the e-commerce environment.

19) Which of the following technologies is aimed at reducing e-mail address spoofing and phishing?

A) TLS

B) WPA

C) DMARC

D) MFA

Answer: C

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.2: Identify the key security threats in the e-commerce environment.

20) What is the most frequent cause of stolen credit cards and card information today?

A) lost cards

B) the hacking and looting of corporate servers storing credit card information

C) sniffing programs

D) phishing attacks

Answer: B

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.2: Identify the key security threats in the e-commerce environment.

21) Which dimensions of security is spoofing a threat to?

A) integrity and confidentiality

B) availability and authenticity

C) integrity and authenticity

D) availability and integrity

Answer: C

Difficulty: Difficult

AACSB: Analytical thinking

Learning Objective: 5.2: Identify the key security threats in the e-commerce environment.

22) Which of the following is not an example of malicious code?

A) scareware

B) Trojan horse

C) bot

D) sniffer

Answer: D

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.2: Identify the key security threats in the e-commerce environment.

23) The attack against Dyn servers is an example of a(n):

A) SQL injection attack.

B) Browser parasite.

C) DDoS attack

D) MitM attack.

Answer: C

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.2: Identify the key security threats in the e-commerce environment.

24) Beebone is an example of which of the following?

A) worm

B) botnet

C) phishing

D) hacktivism

Answer: B

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.2: Identify the key security threats in the e-commerce environment.

25) Malware that comes with a downloaded file requested by a user is called a:

A) Trojan horse.

B) backdoor.

C) drive-by download.

D) PUP.

Answer: C

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.2: Identify the key security threats in the e-commerce environment.

26) Which of the following is not an example of a potentially unwanted program (PUP)?

A) adware

B) browser parasite

C) drive-by download

D) spyware

Answer: C

Difficulty: Difficult

AACSB: Information technology

Learning Objective: 5.2: Identify the key security threats in the e-commerce environment.

27) Which of the following was designed to cripple Iranian nuclear centrifuges?

A) Stuxnet

B) Shamoon

C) Snake

D) Storm

Answer: A

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.2: Identify the key security threats in the e-commerce environment.

28) Automatically redirecting a web link to a different address is an example of which of the following?

A) sniffing

B) social engineering

C) pharming

D) DDoS attack

Answer: C

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.2: Identify the key security threats in the e-commerce environment.

29) Which of the following types of attacks enabled hackers to take control of the Twitter accounts of dozens of America’s most prominent political, entertainment and technology leaders?

A) DDoS attack

B) ransomware

C) social engineering

D) sniffing

Answer: C

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.2: Identify the key security threats in the e-commerce environment.

30) ________ typically attack governments, organizations, and sometimes individuals for political purposes.

A) Crackers

B) Tiger teams

C) Bounty hunters

D) Hacktivists

Answer: D

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.2: Identify the key security threats in the e-commerce environment.

31) A Trojan horse appears to be benign, but then does something other than expected.

Answer: TRUE

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.2: Identify the key security threats in the e-commerce environment.

32) Phishing attacks rely on browser parasites.

Answer: FALSE

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.2: Identify the key security threats in the e-commerce environment.

33) WannaCry is an example of ransomware.

Answer: TRUE

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.2: Identify the key security threats in the e-commerce environment.

34) Spoofing is the attempt to hide a hacker's true identity by using someone else's e-mail or IP address.

Answer: TRUE

Difficulty: Difficult

AACSB: Information technology

Learning Objective: 5.2: Identify the key security threats in the e-commerce environment.

35) Exploit kits can be purchased by users to protect their computers from malware.

Answer: FALSE

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.2: Identify the key security threats in the e-commerce environment.

36) A drive-by download is malware that comes with a downloaded file that a user intentionally or unintentionally requests.

Answer: TRUE

Difficulty: Difficult

AACSB: Information technology

Learning Objective: 5.2: Identify the key security threats in the e-commerce environment.

37) FREAK is an example of a software vulnerability.

Answer: TRUE

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.2: Identify the key security threats in the e-commerce environment.

38) What is the Internet of Things (IoT) and what security issues and challenges does it raise?

Answer: The Internet of Things (IoT) involves the use of the Internet to connect a wide variety of sensors, devices, and machines, and is powering the development of a multitude of smart connected things, such as home electronics (smart TVs, thermostats, home security systems, and more). IoT also includes connected cars, medical devices and industrial equipment that supports manufacturing, energy, transportation, and other industrial sectors.

Unfortunately, IoT raises a host of security issues similar to existing security challenges, but even more challenging, given the need to deal with a wider range of devices, operating in a less controlled, and global environment. In a world of connected things, the devices, the data produced and used by the devices, and the systems and applications supported by those devices, can all potentially be attacked. For instance, many IoT devices, such as sensors, are intended to be deployed on a much greater scale than traditional Internet-connected devices, creating a vast quantity of interconnected links that can be exploited. Existing tools, methods, and strategies need to be developed to deal with this unprecedented scale. Many instances of IoT consist of collections of identical devices that all have the same characteristics, which magnifies the potential impact of security vulnerabilities.

Many IoT devices are anticipated to have a much longer service life than typical equipment, which raises the possibility that devices may "outlive" the manufacturer, leaving them without long-term support that creates persistent vulnerabilities. Many IoT devices are intentionally designed without the ability to be upgraded, or the upgrade process is difficult, which raises the possibility that vulnerable devices cannot or will not be fixed, leaving them perpetually vulnerable. Many IoT devices do not provide the user with visibility into the workings of the device or the data being produced, nor alert the user when a security problem arises, so users may believe an IoT device is functioning as intended when in fact, it may be performing in a malicious manner. Finally, some IoT devices, such as sensors, are unobtrusively embedded in the environment such that a user may not even be aware of the device, so a security breach might persist for a long time before being noticed.

Difficulty: Moderate

AACSB: Analytical thinking; Information technology; Written and oral communication

Learning Objective: 5.2: Identify the key security threats in the e-commerce environment.

39) What is a sniffing attack and how does it differ from a MitM attack?

Answer: A sniffer is a type of eavesdropping program that monitors information traveling over a network. When used legitimately in a sniffing attack, hackers use sniffers to steal proprietary information from a network, including passwords, e-mail messages, company files, and confidential reports. A man-in-the-middle (MitM) attack also involves eavesdropping but is more active than a sniffing attack, which typically involves passive monitoring. In a MitM attack, the attacker can intercept communications between two parties who believe they are directly communicating with one another, when in fact the attacker is controlling the communications.

Difficulty: Moderate

AACSB: Analytical thinking; Information technology; Written and oral communication

Learning Objective: 5.2: Identify the key security threats in the e-commerce environment.

40) List and briefly describe the various types of malicious code and how they work. Include the different types of viruses.

Answer: Malicious code includes a variety of threats such as viruses, worms, ransomware, Trojan horses, and bot programs. A virus is a computer program that can replicate or make copies of itself and spread to other files. Viruses can range in severity from simple programs that display a message or graphic as a "joke" to more malevolent code that will destroy files or reformat the hard drive of a computer, causing programs to run incorrectly. Worms are designed to spread not only from file to file but from computer to computer and do not necessarily need to be activated in order to replicate. Ransomware is a type of malware (often a worm) that locks your computer or files to stop you from accessing them. A Trojan horse is not itself a virus because it does not replicate but it is a method by which viruses or other malicious code can be introduced into a computer system. It appears benign and then suddenly does something harmful. For example, it may appear to be only a game and then it will steal passwords and mail them to another person. A backdoor is a feature of worms, viruses, and Trojans that allow attackers to remotely access compromised computers. Bot programs are a type of malicious code that can be covertly installed on a computer when it is attached to the Internet. Once installed, the bot responds to external commands sent by the attacker, and many bots can be coordinated by a hacker into a botnet.

Difficulty: Moderate

AACSB: Analytical thinking; Information technology; Written and oral communication

Learning Objective: 5.2: Identify the key security threats in the e-commerce environment.

41) Next generation firewalls provide all of the following except:

A) an application-centric approach to firewall control.

B) the ability to identify applications regardless of the port, protocol, or security evasion tools used.

C) the ability to automatically update applications on a client computer with security patches.

D) the ability to identify users regardless of the device or IP address.

Answer: C

Difficulty: Difficult

AACSB: Information technology

Learning Objective: 5.3: Describe how technology helps secure Internet communications channels and protect networks, servers, and clients.

42) Asymmetric key cryptography is also known as:

A) public key cryptography.

B) secret key cryptography.

C) PGP.

D) PKI.

Answer: A

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.3: Describe how technology helps secure Internet communications channels and protect networks, servers, and clients.

43) All the following statements about symmetric key cryptography are true except:

A) in symmetric key cryptography, both the sender and the receiver use the same key to encrypt and decrypt a message.

B) the Data Encryption Standard is a symmetric key encryption system.

C) symmetric key cryptography is computationally slower.

D) symmetric key cryptography is a key element in digital envelopes.

Answer: C

Difficulty: Difficult

AACSB: Information technology

Learning Objective: 5.3: Describe how technology helps secure Internet communications channels and protect networks, servers, and clients.

44) The Data Encryption Standard uses a(n) ________-bit key.

A) 8

B) 56

C) 256

D) 512

Answer: B

Difficulty: Difficult

AACSB: Information technology

Learning Objective: 5.3: Describe how technology helps secure Internet communications channels and protect networks, servers, and clients.

45) All of the following statements about public key cryptography are true except:

A) public key cryptography uses two mathematically related digital keys.

B) public key cryptography ensures authentication of the sender.

C) public key cryptography does not ensure message integrity.

D) public key cryptography is based on the idea of irreversible mathematical functions.

Answer: B

Difficulty: Difficult

AACSB: Information technology

Learning Objective: 5.3: Describe how technology helps secure Internet communications channels and protect networks, servers, and clients.

46) All of the following are features of WPA3 except:

A) it implements a more robust key exchange protocol.

B) it enables the creation of a VPN.

C) it provides a more secure way to connect IoT devices.

D) it features expanded encryption for public networks.

Answer: B

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.3: Describe how technology helps secure Internet communications channels and protect networks, servers, and clients.

47) All of the following statements about PKI are true except:

A) the term PKI refers to the certification authorities and digital certificate procedures that are accepted by all parties.

B) PKI is not effective against insiders who have a legitimate access to corporate systems including customer information.

C) PKI guarantees that the verifying computer of the merchant is secure.

D) the acronym PKI stands for public key infrastructure.

Answer: C

Difficulty: Difficult

AACSB: Information technology

Learning Objective: 5.3: Describe how technology helps secure Internet communications channels and protect networks, servers, and clients.

48) A digital certificate contains all of the following except the:

A) subject's private key.

B) subject's public key.

C) digital signature of the certification authority.

D) digital certificate serial number.

Answer: A

Difficulty: Difficult

AACSB: Information technology

Learning Objective: 5.3: Describe how technology helps secure Internet communications channels and protect networks, servers, and clients.

49) Which of the following dimensions of e-commerce security is not provided for by encryption?

A) confidentiality

B) availability

C) message integrity

D) nonrepudiation

Answer: B

Difficulty: Difficult

AACSB: Information technology

Learning Objective: 5.3: Describe how technology helps secure Internet communications channels and protect networks, servers, and clients.

50) All of the following are methods of securing channels of communication except:

A) TLS.

B) digital certificates.

C) VPN.

D) FTP.

Answer: D

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.3: Describe how technology helps secure Internet communications channels and protect networks, servers, and clients.

51) A ________ is hardware or software that acts as a filter to prevent unwanted packets from entering a network.

A) firewall

B) virtual private network

C) proxy server

D) PPTP

Answer: A

Difficulty: Easy

AACSB: Information technology

Learning Objective: 5.3: Describe how technology helps secure Internet communications channels and protect networks, servers, and clients.

52) Proxy servers are also known as __________ because they have two network interfaces.

A) firewalls

B) application gateways

C) dual home systems

D) packet filters

Answer: C

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.3: Describe how technology helps secure Internet communications channels and protect networks, servers, and clients.

53) All of the following are used for authentication except:

A) digital signatures.

B) certificates of authority.

C) biometric devices.

D) packet filters.

Answer: D

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.3: Describe how technology helps secure Internet communications channels and protect networks, servers, and clients.

54) An intrusion detection system can perform all of the following functions except:

A) examining network traffic.

B) setting off an alarm when suspicious activity is detected.

C) checking network traffic to see if it matches certain patterns or preconfigured rules.

D) blocking suspicious activity.

Answer: D

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.3: Describe how technology helps secure Internet communications channels and protect networks, servers, and clients.

55) Which of the following is not an example of an access control?

A) firewalls

B) proxy servers

C) digital signatures

D) login passwords

Answer: C

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.3: Describe how technology helps secure Internet communications channels and protect networks, servers, and clients.

56) Which of the following statements is not true?

A) A VPN provides both confidentiality and integrity.

B) A VPN uses both authentication and encryption.

C) A VPN uses a dedicated secure line.

D) The primary use of VPNs is to establish secure communications among business partners.

Answer: C

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.3: Describe how technology helps secure Internet communications channels and protect networks, servers, and clients.

57) Which of the following statements is not true?

A) Apple's Touch ID stores a digital replica of a user's actual fingerprint in Apple's iCloud.

B) Biometric devices reduce the opportunity for spoofing.

C) A retina scan is an example of a biometric device.

D) Biometric data stored on an iPhone is encrypted.

Answer: A

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.3: Describe how technology helps secure Internet communications channels and protect networks, servers, and clients.

58) Face ID is an example of which of the following?

A) biometrics

B) encryption

C) IDS

D) firewall

Answer: A

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.3: Describe how technology helps secure Internet communications channels and protect networks, servers, and clients.

59) Which of the following is the most common protocol for securing a digital channel of communication?

A) DES

B) TLS

C) VPN

D) HTTP

Answer: B

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.3: Describe how technology helps secure Internet communications channels and protect networks, servers, and clients.

60) Most computers and mobile devices today have built-in encryption software that users can enable.

Answer: TRUE

Difficulty: Difficult

AACSB: Information technology

Learning Objective: 5.3: Describe how technology helps secure Internet communications channels and protect networks, servers, and clients.

61) The easiest and least expensive way to prevent threats to system integrity is to install antivirus software.

Answer: TRUE

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.3: Describe how technology helps secure Internet communications channels and protect networks, servers, and clients.

62) Explain the difference between symmetric key cryptography and public key cryptography. Which dimensions of e-commerce security does encryption address?

Answer: Symmetric key cryptography involves the use of a secret cipher that transforms plain text into cipher text. Both the sender and the receiver use the same key to encrypt and decrypt the message. The possibilities for simple substitution and transposition ciphers are endless, but there are several flaws in these types of systems that make them inadequate for use today. First, for the sender and the receiver to have the same key, it must be sent over a communication medium that is insecure or they must meet in person to exchange the key. If the secret key is lost or stolen, the encryption system fails. This method can be used effectively for data storage protection but is less convenient for e-mail since the correspondents must pass the secret key to one another over another secure medium prior to commencing the communication. Second, in the digital age, computers are so fast and powerful that these ancient encryption techniques can be quickly and easily broken. Modern digital encryption systems must use keys with between 56 and 512 binary digits to ensure that decryption would be unlikely. Third, for commercial use on an e-commerce site each of the parties in a transaction would need a secret key. In a population of millions of Internet users, thousands of millions of keys would be needed to accommodate all e-commerce customers.

Public key cryptography solves the problem of exchanging keys. In this method every user has a pair of numeric keys: private and public. The public key is not secret; on the contrary, it is supposed to be disseminated widely. Public keys may be published in company catalogs or on online. The public key is used by outside parties to encrypt the messages addressed to you. The private or secret key is used by the recipient to decipher incoming messages. The main advantage of a public key cryptographic system is its ability to begin secure correspondence over the Internet without prior exchanging of the keys and, therefore, without the need for a meeting in person or using conventional carriers for key exchange.

Encryption can provide four of the six key dimensions of e-commerce security. It can provide assurance that the message has not been altered (integrity), prevent the user from denying that he/she has sent the message (nonrepudiation), provide verification of the identity of the message (authentication), and give assurance that the message has not been read by others (confidentiality).

Difficulty: Moderate

AACSB: Analytical thinking; Information technology; Written and oral communication

Learning Objective: 5.3: Describe how technology helps secure Internet communications channels and protect networks, servers, and clients.

63) What dimensions do digital signatures and hash digests add to public key cryptography and how do they work?

Answer: Digital signatures and hash digests can add authentication, nonrepudiation, and integrity when used with public key encryption. Encryption technology also allows for digital signatures and authentication. The sender encrypts the message yet again using their private key to produce a digital signature.

To check the confidentiality of a message and ensure it has not been altered in transit, a hash function is used first to create a digest of the message. A hash function is an algorithm that produces a fixed-length number called a hash or message digest. To ensure the authenticity of the message and to ensure nonrepudiation, the sender encrypts the entire block of cipher text one more time using the sender's private key. This produces a digital signature or "signed" cipher text. The result of this double encryption is sent over the Internet to the recipient. Then, the recipient first uses the sender's public key to authenticate the message. Once authenticated, the recipient uses his or her private key to obtain the hash result and original message. As a final step, the recipient applies the same hash function to the original text and compares the result with the result sent by the sender. If the results are the same, the recipient now knows the message has not been changed during transmission. The message has integrity.

Difficulty: Difficult

AACSB: Analytical thinking; Information technology; Written and oral communication

Learning Objective: 5.3: Describe how technology helps secure Internet communications channels and protect networks, servers, and clients.

64) Discuss the security of communications channels. Include definitions and explanations for the terms Secure Sockets Layer (SSL), Transport Layer Security (TLS), secure negotiated session, session key, HTTPS, and VPN.

Answer: Secure Sockets Layer was the original protocol enabling securing communications over the Internet. Today it has been replaced by the Transport Layer Security Protocol (TLS). When you receive a message from a web server then you will be communicating through a secure channel; this means that TLS will be used to establish a secure negotiated session. A secure negotiated session is a client-server session in which the URL of the requested document, its contents, and the contents of the forms filled out by the user on the page, as well as the cookies that are exchanged, are all encrypted. The browser and the server exchange digital certificates with one another, determine the strongest shared form of encryption, and begin communicating using a unique symmetric encryption key, agreed upon for just this encounter. This is called a session key. TLS provides data encryption, server authentication, optional client authentication, and message integrity for the TCP/IP connections between two computers.

TLS addresses the threat of authenticity by allowing users to verify another user's identity or the identity of a server. It also protects the integrity of the messages exchanged. However, once the merchant receives the encrypted credit and order information, that information is typically stored in unencrypted format on the merchant's servers. While /TLS provides secure transactions between merchant and consumer, it only guarantees server-side authentication. Client authentication is optional. In addition, In addition, TLS cannot provide irrefutability consumers can order goods or download information products and then claim the transaction never occurred.

TLS is used in conjunction with HTTPS, a secure version of the HTTP protocol that uses TLS for encryption and authentication. It is implemented by a server adopting the HTTP Strict Transport Security (HSTS) feature, which forces browsers to only access the server using HTTPS.

Virtual private networks (VPNs) enable remote users to access an internal network from the Internet. They use protocols to create a private connection between a user on a local ISP and a private network. This process is called tunneling because it creates a private connection by adding an encrypted wrapper around the message to hide its content. It is called virtual because it appears to be a dedicated secure line when in fact it is a temporary secure line. VPNs are used primarily for transactions between business partners because dedicated connections can be very expensive. The Internet and VPNs can be used to significantly reduce the costs of secure communications.

Difficulty: Moderate

AACSB: Analytical thinking; Information technology; Written and oral communication

Learning Objective: 5.3: Describe how technology helps secure Internet communications channels and protect networks, servers, and clients.

65) What is the first step in developing an e-commerce security plan?

A) Create a security organization.

B) Develop a security policy.

C) Perform a risk assessment.

D) Perform a security audit.

Answer: C

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.4: Appreciate the importance of policies, procedures, and laws in creating security.

66) To allow lower-level employees access to the corporate network while preventing them from accessing private human resources documents, you would use:

A) a firewall.

B) an authorization management system.

C) security tokens.

D) an authorization policy.

Answer: B

Difficulty: Easy

AACSB: Information technology

Learning Objective: 5.4: Appreciate the importance of policies, procedures, and laws in creating security.

67) Which of the following statements is not true?

A) A majority of states require companies that maintain personal data on their residents to publicly disclose when a security breach affecting those residents has occurred.

B) The USA Patriot Act broadly expanded law enforcement's investigative and surveillance powers.

C) The Cybersecurity Information Sharing Act was strongly supported by most large technology companies and privacy advocates.

D) The Federal Trade Commission has asserted that it has authority over corporations' data security practices.

Answer: C

Difficulty: Difficult

AACSB: Application of knowledge

Learning Objective: 5.4: Appreciate the importance of policies, procedures, and laws in creating security.

68) Zero trust is a cybersecurity framework based on the principle of maintaining strict access controls and not trusting anyone or anything by default, even those behind a corporate firewall.

Answer: TRUE

Difficulty: Easy

AACSB: Application of knowledge

Learning Objective: 5.4: Appreciate the importance of policies, procedures, and laws in creating security.

69) How do multi-factor authentication tools provide security?

Answer: Multi-factor authentication (MFA) tools require users to have multiple credentials to verify their identify. Authentication credentials might include something the user knows, such as a password; something the user possesses, such as a smartphone or YUBIkey USB device; and something that the user “is”, such as a physical characteristic. Two-factor authentication (2FA) is a subset of MFA that requires two credentials. Many MFA systems use mobile phones and involve either texting a one-time dynamic secure passcode to the phone or pushing an authentication request to an app on the phone that the user can confirm via a built-in biometric authenticator, such as TouchID, as further discussed later. However, MFA tools can still be compromised, using malware such as Trickbot, which can intercept the one-time codes sent by an app, by phishing attacks, as well as by other methods

Difficulty: Moderate

AACSB: Application of knowledge; Information technology; Written and oral communication

Learning Objective: 5.4: Appreciate the importance of policies, procedures, and laws in creating security.

70) Which of the following statements about blockchain is not true?

A) A blockchain system is composed of a distributed network of computers.

B) A blockchain system is inherently centralized.

C) A blockchain system is a transaction processing system.

D) Cryptocurrencies are based on blockchain technology.

Answer: B

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.5: Identify the major e-commerce payment systems in use today.

71) All of the following statements about Apple Pay are true except which of the following?

A) Apple Pay is the most popular alternative payment method in the United States

B) Apple Pay is an example of a universal proximity mobile wallet.

C) Apple Pay can be used for mobile payments at the point of sale at a physical store.

D) Apple Pay has more users than either Google Pay or Samsung Pay.

Answer: A

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.5: Identify the major e-commerce payment systems in use today.

72) PayPal is an example of which of the following types of payment system?

A) online stored value payment system

B) digital checking system

C) accumulating balance system

D) digital credit card system

Answer: A

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.5: Identify the major e-commerce payment systems in use today.

73) PCI-DSS is a standard established by which of the following?

A) the banking industry

B) the credit card industry

C) the federal government

D) the retail industry

Answer: B

Difficulty: Moderate

AACSB: Application of knowledge

Learning Objective: 5.5: Identify the major e-commerce payment systems in use today.

74) Which of the following is not a major trend in e-commerce payments in 2020-2021?

A) Online payment volume decreases due to the Covid-19 pandemic.

B) PayPal remains the most popular alternative payment method.

C) Large banks enter the mobile wallet and P2P payments market.

D) Payment by credit and/or debit card remains the dominant form of online payment.

Answer: A

Difficulty: Moderate

AACSB: Application of knowledge

Learning Objective: 5.5: Identify the major e-commerce payment systems in use today.

75) All of the following are limitations of the existing online credit card payment system except:

A) poor security.

B) cost to consumers.

C) cost to merchant.

D) social equity.

Answer: B

Difficulty: Moderate

AACSB: Application of knowledge

Learning Objective: 5.5: Identify the major e-commerce payment systems in use today.

76) Which of the following statements about Bitcoin is not true?

A) The computational power required to mine Bitcoins has increased over time.

B) Bitcoins are completely secure.

C) Bitcoins are illegal in some countries.

D) Bitcoin mining uses more energy than the entire amount consumed by Switzerland.

Answer: B

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.5: Identify the major e-commerce payment systems in use today.

77) Which of the following is a set of short-range wireless technologies used to share information among devices within about two inches of each other?

A) DES

B) NFC

C) IM

D) text messaging

Answer: B

Difficulty: Difficult

AACSB: Information technology

Learning Objective: 5.5: Identify the major e-commerce payment systems in use today.

78) All of the following are examples of cryptocurrencies except:

A) Ethereum.

B) Ripple

C) Zelle.

D) Monero.

Answer: C

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.5: Identify the major e-commerce payment systems in use today.

79) Zelle is an example of a P2P mobile payment app.

Answer: TRUE

Difficulty: Easy

AACSB: Application of knowledge

Learning Objective: 5.5: Identify the major e-commerce payment systems in use today.

80) Bluetooth is the primary enabling technology for mobile wallets

Answer: FALSE

Difficulty: Easy

AACSB: Information technology

Learning Objective: 5.5: Identify the major e-commerce payment systems in use today.

81) There is a finite number of Bitcoins that can be created.

Answer: TRUE

Difficulty: Moderate

AACSB: Information technology

Learning Objective: 5.5: Identify the major e-commerce payment systems in use today.

82) Briefly describe the three primary types of mobile wallet apps and identify the examples of each type.

Answer: There are three primary types of mobile wallet apps: universal proximity wallets, branded store proximity wallets, and P2P apps. Universal proximity mobile wallets, such as Apple Pay, Google Pay, and Samsung Pay, that can be used at a variety of merchants for pointof-sale transactions if the merchant supports that service (e.g., has an Apple merchant app and can accept such payments), are the most-well known and common type. Branded store proximity mobile wallets are mobile apps that can be used only at a single merchant. For instance, Walmart, Target, Starbucks, and Dunkin Donuts all have very successful mobile wallet apps. P2P mobile payment apps, such as Venmo, Zelle, and Square Cash, are used for payments among individuals who have the same app.

Difficulty: Moderate

AACSB: Application of knowledge; Information technology; Written and oral communication

Learning Objective: 5.5: Identify the major e-commerce payment systems in use today.

83) Mint Bills is an example of which of the following EBPP business models?

A) biller-direct

B) online banking

C) consolidator

D) mobile

Answer: C

Difficulty: Difficult

AACSB: Application of knowledge

Learning Objective: 5.6: Describe the features and functionality of electronic billing presentment and payment systems.

84) According to the most recent Fiserv survey, 65% of consumers in the United States have used online bill payment.

Answer: TRUE

Difficulty: Moderate

AACSBL Application of knowledge

Learning Objective: 5.6: Describe the features and functionality of electronic billing presentment and payment systems.

85) Define and explain how electronic billing presentment and payment systems (EBPP) systems work. Describe each of the main EBPP business models.

Answer: EBPP refers to electronic billing presentment and payment systems, which are systems that enable the online delivery and payment of monthly bills. EBPP services allow consumers to view bills electronically using either their desktop PC or mobile device and pay them through electronic funds transfers from bank or credit card accounts. More and more companies are choosing to issue statements and bills electronically, rather than mailing out paper versions, especially for recurring bills such as utilities, insurance, and subscriptions.

There are four main types of EBPP business models: online banking, biller-direct, mobile, and consolidator. The online banking model is the most widely used today. Consumers establish an online payment service with their banks and use it to pay bills as they come due or automatically make payments for, say, rent. The payments are made directly to the seller's bank account. This model has the advantage of convenience for the consumer because the payments are deducted automatically, usually with a notice from the bank or the merchant that their account has been debited. In the biller-direct model, consumers are sent bills by e-mail notification, and go to the merchant's website to make payments using their banking credentials. This model has the advantage of allowing the merchant to engage with the consumer by sending coupons or rewards.

The biller-direct model is a two-step process, and less convenient for consumers. The mobile model allows consumers to make payments using mobile apps, once again relying on their bank credentials as the source of funds. Consumers are notified of a bill by text message and authorize the payment. An extension of this is the social-mobile model, where social networks like Facebook integrate payment into their messaging services. The mobile model has several advantages, not least of which is the convenience for consumers of paying bills while using their phones, but also the speed with which bills can be paid in a single step. This is the fastest growing form of EBPP. For instance, Facebook Messenger enables users to send and receive P2P payments to and from friends and family with either a debit card or PayPal account. Facebook does not charge for these transfers.

In the consolidator model, a third party, such as a financial institution or a focused portal such as Intuit's Paytrust, Fiserv's MyCheckFree, Mint Bills, and others, aggregates all bills for consumers and permits one-stop bill payment. This model has the advantage of allowing consumers to see all their bills at one website or app. However, because bills come due at different times, consumers need to check their portals often. The consolidator model faces several challenges. For billers, using the consolidator model means an increased time lag between billing and payment, and inserts an intermediary between the company and its customer.

Supporting these primary business models are infrastructure providers such as Fiserv, Yodlee, FIS Global, ACI Worldwide, MasterCard RPPS (Remote Payment and Presentment Service), and others that provide the software to create the EBPP system or handle billing and payment collection for the biller.

Difficulty: Moderate

AACSB: Analytical thinking; Information technology; Written and oral communication

Learning Objective: 5.6: Describe the features and functionality of electronic billing presentment and payment systems.