g around 1,700 for awhile, but is expected to reach 15,000 by the year 2001 (BERKLEY 6). The attractions of the Internet for conducting commerce are getting higher and conducting a transaction at one-sixth the cost of placing the same order through human operator (BERKELY 4). The use of the Internet for electron commerce now includes transaction types that formerly were considered too risky. In 1996 the San Francisco-based Lombard Institutional Brokerage began to offer customer the ability to sell and buy stocks over the Internet (DALE 7). Other brokerages, including Charles Schwab and Jack White & Co., have jumped on the business. In the same year, Currency Management Corp. (CMC) of London began offering foreign exchange trading in 27 currencies on the Internet (DALE 7). Although most published commentaries researched for this paper seem to be optimistic about the electronic commerce security issues, doubt currently restrict the use of the Internet for electronic commerce to a few risk takers. One survey of Internet users indicated that for 50% to 60% of the respondents, security is the main Internet usage issue (DALE 2). Most electronic commerce issues have long ago been solved in theory, and implementation of protocols and software solutions loom on the horizon. For the moment, many issues of concern still exist. Internet System The Internet developed through the 1960’s and 1970’s in a largely academic setting and emphasized connectivity as opposed to security (BULLETIC 4). In order to discuss security issues of electronic commerce, a brief summary of a few technical points concerning the Internet is necessary. A business maintains an Internet presence through an Internet server or host. The Internet presence may occur through a firm setting up its own server, such as a World Wide Web (WWW) page, or by leasing virtual real estate on someone else’s server, such as with an Internet cybermall (DEBORAH 35...
