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Adverse Effects of E-Commerce 37<br />

environments such as e-commerce are good for offering online products and<br />

services, these environments pose a threat to governments. Online environments<br />

are vulnerable to attacks from inside and outside the companies. Many of the recent<br />

virus attacks triggered by hackers targeting specific sites indicate how hackers can<br />

affect businesses. A country where almost all the systems such as electricity, water,<br />

transportation, and businesses are automated becomes a major target for information<br />

warfare.<br />

Many experts fear that abuse of online environments may become a weapon<br />

to overthrow governments. Information warfare is definitely a concern of most<br />

nations as can be seen by the large number of nations researching and developing<br />

offensive information warfare systems. This increased awareness of the potential<br />

damage cyber attacks can inflict has caused most nations to research defensive<br />

information warfare tactics (Sharma & Gupta, 2001).<br />

Abuse of Power<br />

Computer matching is a technique employed to verify personal information by<br />

cross-referencing it with a separate, unrelated database. The dangers of computer<br />

matching include the abuse of power, the existence of outdated data and the<br />

possibility of information leaks. In 1988, the United States Congress passed the<br />

Computer Matching Privacy and Protection Act. The legislation permitted government<br />

agencies to compare information from two or more sources to detect<br />

anomalies. If information stored in different databases varies, people may be denied<br />

certain privileges based on wrong records or outdated data. Some fear that the<br />

results of computer matching are as effective as door-to-door searches and can<br />

indict them for mistakes of others if wrong data is used. It again leads to invasion<br />

of privacy (Shattuck, 1996).<br />

Customers may give false personal information while shopping or surfing on the<br />

<strong>net</strong> to avoid being profiled by marketing companies. Due to privacy concerns,<br />

people may intentionally provide incorrect information about themselves, creating<br />

problems by having wrong information recorded in some databases. Incorrect<br />

information can create misery when used and exchanged by various agencies with<br />

banks, and health organizations. Incorrect information can cost a job, opportunity<br />

or the denial of a bank loan or mortgage. Data can be misconstrued in a variety of<br />

strange ways. If information is not verified properly, it can lead to drastic results. The<br />

verification of information by cross-referencing can also lead to positive consequences<br />

for both individuals and organizations. Therefore, its negative impact must<br />

be minimized so that individuals and organizations can benefit from its positive<br />

results.<br />

Copyright © 2003, Idea Group Inc. Copying or distributing in print or electronic forms without written<br />

permission of Idea Group Inc. is prohibited.

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