Identity Theft & E-Commerce
“The power of choosing good and bad is within the reach of all. ”
From the moment the internet got introduced, E-commerce took its baby steps and along with it, so did the unfortunate among us, the hackers. The internet with all its merits serves as the dealer of doom as well as an integral medium through which hackers may invade the privacy of numerous individuals and access their personal information to be used by them for carrying out their personal objectives. The series of increasing online identity frauds have been up due to the inefficient privacy laws and lack of policies imposed on businesses in order to safeguard personal information of individuals.
The economy and e-commerce in a better sense has taken a huge hit due to the growth of identity theft cases resulting in loss of billions of dollars every year by individuals and businesses. Businesses on the other hand have seen quite a decline in their customers and sales as people are hesitant to engage in such e-commerce transactions due to the risk of getting ripped off.
What needs to be promoted are ways to carry on such online transactions without falling into a trap and the government in particular through FTC (Federal Trade Commission) is implementing such mechanisms and carrying out social campaigns with the aim to teach consumers prevention and handling while carrying out e-commerce transactions.
Taking a hint from the topic, our identity and our recognition are the weapons of the outcasts, their easy access to our socials, financial records and other personal information are used by them to impersonate us in order to conduct transactions without our knowledge. With everyday passing by, victims lose thousands of dollars for compensation and restoration of their uprooted lives by these thieves.
With these felons running around the block, rate of consumers becoming wary of such e-commerce transactions has been increasing with a major share of them completely such transactions all together.
Companies that are handlers of such e-commerce transactions need to provide surety to their consumers that their information will be handled with integrity and their personal information will not fall into false hands for wrongful usage.
Also some laws may be enacted, which may persuade companies and businesses enabling them to protect consumer confidentiality and allow for fast correction of credit documents.
To slip into a little detail about the ways used by the fraudsters to exploit their victims, to embark with the simple and traditional one of stealing credit cards, identity cards in pickpocketing incidents and even housebreakings.
To mention a creative one, criminals often use the course of dumpster diving whose explanation may be in the title itself, mainly in which they search through the person’s trash in order to find personal information about them and enjoy the benefit of gathering pre-approved credit card applications helping them through it all.
In various cases the criminals may eavesdrop on potential victims when they are giving out their credit information to a hotel or a rental agency without the awareness of their surroundings. Also with the technological up rise many people have not acquired the usage of smartphones wisely and may respond to fraud SMS alerts or text messages that ask for their personal information luring them through future benefits which makes it irresistible for them to provide such information. To sum up these tactics may be very successful if used effectively and may rob the victim of a life’s fortune without them having any sense of what happened to them.
Impact Of Identity Theft
As a major crime in society, identity theft can be a cause of deep emotional impact on the victim, stressing them and making them feel depressed while trying to recover from such loss. These victims acquire a lifelong fear of engaging in e-commerce transactions as they are fearful of having such incidents befalling on them again. Such victims continue to face hardships even when the fraud has ceased while applying for new financing and bank accounts. Considering all this, undoing damages by these criminals is a daunting process. These thefts also take a huge hit on the economy as businesses suffer losses due to fraudulent transactions and less trust between them and the consumer.
Effect on E-Commerce
E-commerce has taken a downfall with the rise in cases of identity theft with the sole reason of high risk of being the next identity theft victims no matter how careful they may be. Fact being that according to reports the criminals tend to use traditional methods of identity theft,
still the consumer being a precautionary one avoid participating in online transactions in fear of joining the club of those of the sufferers. This mainly has a negative impact on companies such as PayPal, Amazon who rely heavily on online transactions and are suffering losses due to the ongoing felonies.
In a nutshell, identity theft has been an increasing concern in this fast moving and technological upgradable environment. It has resulted in great losses for businesses and left its victims in distress. The need to control and cure it has been the main concern for which
various laws may be enacted and a constant eye may be kept on it for its fast removal from the society.
The likelihood of becoming a victim of identity theft reduces the extent to which an individual safeguards their personal information. Consumers should be cautious in their online dealings, rather than avoiding e-commerce, given its practical advantages. If a person believes they are a victim of identity fraud, they should move quickly to minimize the harm that the criminal may cause.
The individual could report to the FTC (Federal Trade Commission), or contact other appropriate agencies that may assist the individual. Consumers should feel safer conducting transactions online now that the government is continually developing new laws to combat cybercrime.
IvyPanda. (2019, March 3). Identity Theft and E-commerce. Retrieved from https://ivypanda.com/essays/identity-theft-and-e-commerce/
By Prisha Gupta
The Rise of Over-the-Top Platforms: A Blessing or a Curse? Before we begin to discuss …
The Economic Disadvantage to Women: Pink Tax and Gender Wage Gap On one hand, women …
The Upsurge Of Subscription Economy In recent times, subscription model has spread like a wildfire …