E-Commerce, Digital Signatures, Cybercrime, and Data Flow
Concept of Electronic Commerce: Any form of transaction or exchange of business information based on data transmission and Internet communications networks.
What elements comprise e-commerce? E-commerce includes not only buying and selling goods, information, or services electronically but also using the network for pre- and post-sale activities.
Pre- and post-sale e-commerce activities:
- Advertising
- Finding information about products and suppliers
- Negotiating price and delivery terms
- Customer service
- Compliance with administrative procedures
- Collaboration between companies
Types of Electronic Commerce:
- Business-to-Business (B2B)
- Business-to-Consumer (B2C)
- Business-to-Administration (B2A)
Actors involved in electronic commerce: Businesses, Consumers, Government.
Advantages of e-commerce: Increased efficiency, reduced market entry barriers, expanded consumer access, and reduced or eliminated intermediaries.
Disadvantages of electronic commerce
Electronic Signature: A generic term for technologies used to sign a data message. Examples include writing a name in an email, digitizing a signature, using a PIN, biometric identification (fingerprint or retina), and digital signatures (cryptography-based).
Digital Signature: A type of electronic signature based on cryptography, most commonly asymmetric cryptography or public key. Examples are the same as for electronic signatures, but specifically using cryptographic methods.
Difference between electronic and digital signatures
Encryption in electronic signatures: Protecting information from unauthorized access using complex algorithms.
E-commerce regulation in Mexico: Mexico amended its laws in the nineties to promote e-commerce. Reforms, additions, and amendments were published in the Official Gazette on May 29, 2000.
Federal Electronic Signature Legislation:
- Federal Civil Code (Arts. 1, 1803, 1805, 1811, and 1834)
- Code of Civil Procedure (Art. 210-A)
- Federal Consumer Protection Law (Art. 128, Art. 1, Art. 24, Chapter VIII bis)
- Commercial Code (Arts. 18, 20-32, 49, 80, 1205, 20 bis, 21 bis, 21 bis 1, 30 bis, 30 bis 1, 32 bis 1, 2198-A, Title II “Electronic Commerce” Arts. 89-94)
Computer Crimes: Illegal acts using computers as instruments or targets.
Main characteristics of computer crimes:
- White-collar criminogenic behaviors
- Occupational activities
- Actions of opportunity
- Serious economic losses
- Time and space facilities
- Many cases and few complaints
- Very sophisticated
- Difficult to verify
- Mostly reckless
- Facilitated for minors
Classifying computer crimes: As instruments or means, and as an end or goal.
1. Crimes as Instruments or Means:
Examples:
- a) Falsification of documents (credit cards, checks)
- b) Changing assets and liabilities in company accounts
- c) Planning and simulation of crimes (burglary, murder, fraud)
- d) Theft of computer time
- e) Reading, theft, or copying confidential information
- f) Changing data (input and output)
- g) Improper use or violation of a code to penetrate a system (“Trojan horse”)
- h) Diverting small amounts of money into an unauthorized account (“salami technique”)
- i) Unauthorized use of computer programs
2. Crimes as Purpose or Goal:
Examples:
- a) Programming instructions that cause system blockage
- b) Destruction of programs
- c) Damage to memory
- d) Physical attack against computer or accessories
- e) Political sabotage or terrorism targeting computer centers
- f) Kidnapping magnetic media for blackmail
Preventive and corrective controls for cybercrime:
- a) Development of a psychometric test
- b) Special clauses in labor contracts
- c) Establishment of codes of ethics
- d) Access control measures
- e) Training
- f) Rotation of system passwords
Corrective System: Include specific legal provisions in criminal codes.
Types of attacks against information systems:
Interruption
Intercept
Modification
Manufacturing
Attacks on ASSETS AND LIABILITIES
Examples of computer crimes (at least 10):
- a) Falsification of documents (credit cards, checks)
- b) Changing assets and liabilities in company accounts
- c) Planning and simulation of crimes (burglary, murder, fraud)
- d) Theft of computer time
- e) Reading, theft, or copying confidential information
- f) Changing data (input and output)
- g) Improper use or violation of a code to penetrate a system (“Trojan horse”)
- h) Diverting small amounts of money into an unauthorized account (“salami technique”)
- i) Unauthorized use of computer programs
- j) Introduction of disruptive instructions (“consult your dealer”)
- k) Abnormal functioning due to computer viruses
- l) Obtaining residual information from paper or magnetic tape
- m) Unauthorized computer access
Cross-Border Data Flow: Flow of data and information across national borders for processing, storage, and retrieval.
Streams of information: Business information, special information.
Legal issues about cross-border data: Illicit data transmission, tax regimes, undermining state sovereignty.
Regulating the Internet: Using cyber police patrols.
Cyber Police: A police force working through computers.
Cyber police functions: “Antihacker patrols” through cyberspace.
Problems related to data flow (6 examples): Card cloning, vital data theft, code theft, password theft, identity theft, work theft.