E-Commerce Liability and Security Breaches in Mobile Payment for e-Business Sustainability

Abstract

This study investigates liability issues in electronic transactions when security or privacy breaches occur. As data is transferred using various devices, such as PCs, mobile phones, tablets, sensors, smart meters, and cars, and various architecture, such as the cloud, IoT, as well as in well-defined network structures in electronic commerce, privacy and security breaches happen. These have become a major hindrance to the development and use of commercial activities on the Internet. There have been many security breach cases, such as those of Target Corporation's security and payment system (2013), eBay's cyberattack (2014), Uber's hacking incident (2016), Facebook's personal data use and privacy breach (2018), and many others. Therefore, when a dispute regarding electronic transactions arises between a customer and a firm, the allocation of liability is very important for the sustainability of e-businesses. Many cases show that firms are held liable for those incidents. However, the liability allocation rule tends to vary slightly from country to country depending on the application areas. EU countries seem to favor customers. In the United States, there are actually no uniform federal laws relating to business cybersecurity. Also, in the case of cryptocurrency, liability tends to lie with customers. Why is the ruling different? In this regard, this paper analyses the legal framework for security and privacy breaches for sustainable e-businesses. In particular, this paper focuses on the optimal liability in terms of enhancing social welfare when considering both sides-the customer and the firm (or service provider). This paper shows that liability can be generally imposed on the firm's side when the possibility of security or privacy breaches is high, and the customer's loss is relatively large. However, the liability depends on the customer's attitude towards risk, customer's losses, and the efficiency of security investment.

Understanding the Sustainable Usage Intention of Mobile Payment Technology in Korea: Cross-Countries Comparison of Chinese and Korean Users

“…Therefore, academics have been focusing on determining the factors influencing usage intention. Chun [17] stated that when arguments arose between customers and companies in electronic businesses, responsibility allocation was crucial to the sustainability of e-commerce. By analyzing the market reactions to Samsung Pay and Apple Pay, Son and Kim [18] revealed that technology administration policies could confirm the sustainability of fast-changing technological progress.…”

The Role of Consumers’ Perceived Security, Perceived Control, Interface Design Features, and Conscientiousness in Continuous Use of Mobile Payment Services

“…While previous studies on m-commerce have explored initial adoption, the need to explore the factors that affect continuous use intention has attracted increasing attention [1,5,46]. Researchers have applied different models, such as the theory of planning behavior (TPB) and expectation confirmation theory (ECT), to explain users' continued use of online or mobile services [28,47].…”

Pemetaan Bentuk Dan Pencegahan Penipuan E-Commerce

“…Untuk membantu perusahaan mengumpulkan lebih banyak informasi pengguna, penelitian (Sun et al, 2019) Mencegah penipuan dalam e-commerce. Permasalahan pada dunia ecommerce sangat sering terjadi sehingga menjadi hal yang biasa, tetapi sulit untuk menentukan seberapa besar risiko yang akan diterima, maka perlu dilakukan pendeteksian penipuan dengan berbagai macam metode (Chun, 2019 (Syed & Shabbir, 2013). Temuan Caldeira et al, (2014) Pihak-pihak yang terlibat dalam transaksi e-commerce biasanya tidak sepenuhnya percaya satu sama lain, pedagang perlu memperhatikan keamanan konsumen, privasi konsumen, dan reputasi toko mereka untuk mempengaruhi kepercayaan konsumen dalam berbelanja online, sehingga dapat disimpulkan bahwa kepercayaan adalah faktor terpenting dalam melakukan transaksi baik online maupun offline (Nurhatinah, 2018).…”