Finding an effective and secured information system in e-commerce environment

E-commerce is growing at an exceptional rate as more organizations are offering their goods and services on-line every day. Importantly, this growth is being matched by the number of people gaining access to the Internet in a variety of ways. E-commerce offers opportunities as well as threats. Information is crucial for any organization especially in the e-market. A key negative perception centres on the security involved in Internet practice and electronics payments systems. The lack of an effective and trusted payment system that can be used in combination with on-line shopping has been limiting factor in the growth of internet sales. Consumers are hesitant to provide personal information, including credit card details, over the Internet because of high perception of risk and concerns with privacy. Negative perceptions are then compounded and reinforced by massive media exposure of Internet security incidents. From a lack of positive experiences and negative perceptions, many consumers still lack the necessary trust in on-line merchants and Internet security procedures and continue to use the Web to simply surf. Establishment of information security system can minimize the threats and risks. The paper provides an overview of electronic commerce and the impact of risk on on-line shopping environment. Due to the growth and potential of on-line shopping and the lack of academic based research on Internet-related consumer behaviour, there is a tremendous need for independent, academic investigation into the behaviour and perceptions of on-line consumers. The present study collected data on the perceptions of risk in relation to information security from a sample size of 624, which include both online and traditional shoppers. The data were then analyzed in order to investigate the current trends of consumer behaviour when making transactions in e-commerce environment.