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Transaction Security Schemes and How to Prevent Them

In: Computers and Technology

Submitted By cancer69
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Running Header: Transaction Security Schemes and How to Prevent Them

Transaction Security Schemes and How to Prevent Them
University of Maryland University College

ITEC 610
November 8, 2011

Abstract
According to Management, Information Systems (2011), “Transactions are events that occur as part of doing business, such as sales, purchases, deposits, withdrawals, refunds, and payments ” (p. 278). Criminals use technology to get people to send money, obtain banking/credit card account and personal information. The purpose of this paper is to prove that with awareness, the appropriate preventive measures in place, consumers can minimize or eliminate their risk of falling prey to these scams.

Transaction Security Schemes and How to Prevent Them

Secure Electronic Transaction (SET) was developed to ensure the security of financial transactions on the Internet. It was supported initially by MasterCard, Visa, Microsoft, Netscape, and others. A user is given an electronic wallet and a transaction is conducted and verified using a combination of digital certificates and digital signatures among the purchaser, a merchant, and the purchaser’s bank in a way that ensures privacy and confidentiality.

A SET purchase involves three parties: the cardholder, the merchant, and the payment gateway or bank. The cardholder shares the order information with the merchant but not with the payment gateway. He shares the payment information with the bank but not with the merchant. A SET dual signature accomplishes this partial sharing of information: the cardholder makes separate hashes of the order information and the payment information and signs the pair of hashes. Every other party receives the hash of the withheld information and the signature of the pair. Each party can confirm that the

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