Electronic Currency

E-currency refers to a variety of payment mechanisms used to make payments at retail outlets and over the internet through computer based communication technologies. The Bank for International Settlements has defined electronic currency as the monetary value measured in currency units stored in electronic form on an electronic device in the consumer’s possession. A working definition of e-currency in Malaysian context is taken to include electronic purse initiatives such as MEPS cash and stored value card such as Touch ‘n Go cards.

The first attempt of e-currency implementation in Malaysia was in 1999 with the introduction of MEPS cash in Klang Valley. The facilities to reload the cards with cash was limited, the outlets where MEPS cash was accepted was also few in numbers. However, the situation is quite different today where almost every ATM machine in the country is equipped with the ability to reload MEPS cash.

Another implementing e-currency in Malaysia came in the form of the Touch ‘n Go cards offered by Rangkaian Segar which is a private company. The Touch ‘n Go cards were originally intended for toll payments along the Malaysia highways. The cards may either be linked to ones credit or bank card with automatic reload facilities to a stipulated maximum level once the amount on the cards fall to a predetermined minimum level. The cards can be reloaded at some of the toll booths or at some banks’ ATM terminals. Despite the availability of these cards, it is not surprising to find long queues during peak hours along the cash booths along the local highways. Nevertheless, it is interesting to note that today, the Touch ‘n Go cards are also used for other payments such as parking bays, train and bus fares.

Although e-currency can provide many benefits such as convenience and privacy, increased efficiency of transactions, lower transactions fees, and new business opportunities with the expansion of economic activities on the Internet, there are many potential issues with the use of e-currency. The transfer of digital currencies raises local issues such as how to levy taxes or the possible ease of money laundering. There are also potential macroeconomic effects such as exchange rate instabilities and shortage of money supplies. These issues may only be addressable by some type of cyberspace regulations or laws that regulate the transactions and watch for signs of trouble.

Review a local E-Commerce site.

Lelong.com is a Malaysian online market that can be accessed by people all over the world. Lelong.com was design for the purpose of auction activities such as bargain, bidding, buying and selling. It allows users to have online internet auction and trading for many types or products or services like electronic products, books, home appliances and so on.

All auctioned and sales products are categorized to allow people who visit and access this website to find information about products easily and then enter into transaction such as buying and selling. There are 30 categories all together in Lelong.com. Categories include beauty and health, books and comics, cars and transport, clothing and accessories, house and property, gifts and premiums, and travel and tours.

The idea of an auction site in Malaysia has taken off with huge good responses, and to stand out among competitors and attract the Malaysian internet users as a whole, Lelong.com has three different language versions – English, Chinese and Malay. Because of good responses from the Malaysia internet users as a whole and the realization of many distributers of the advantages of using an online auction site to trade, Lelong.com is transacting from a Consumer-to-Consumer (C2C) relationship to a Business-to-Consumer (B2C) relationship.

Selling System:
Maximum Bid / AutoBid / ProxyBid
Each time you enter a Maximum Bid, your automatic proxy, AutoBid goes to work for you. AutoBid lets you set an upper bidding limit, which is your Maximum Bid, while keeping your actual bids as low as possible. If another party beats your initial bid, AutoBid raises your bid by one single increment more than the challenging bid. This pattern continues until another bidder exceeds your Maximum Bid, or until you win the auction.

Payment channel:
1. Online Credit Card

• Visa / Master

2. Interbank Transfer / Giro / Bank Counter

• Maybank, Alliance Bank

3. E-banking Payment

• Open Bill Payment

4. Cheque payment

5. Cash payment in Lelong office

Things to take note to prevent E-auction fraud when a consumer participating in an E-auction.

User identity verification
This can be done by requesting the user to supply information for on-line verification such as social security number, driving license number, date of birth. E-bay used eBay User program for such purposes.

Authenticate and grading service
Product authentication can be done to verify the product on sale is a genuine product and adhered to the specification. E-bay provides a links for its user to authentication web site for such service.

Feedback forum
Establish a feedback forum to allow registered buyers and sellers to build up their reputations and allows the buyers to provide their comments, such as E-bay feedback forum.

Insurance policy
Provide an insurance coverage to protect the seller and buyer interest, such as ebay offers insurance underwritten by Lyold’s of London and WebTradeInsure.com who provides supplementary insurance.

Escrow services
The buyer and user can obtain an escrow services from the providers such as tradenable.com to protect their interest against frauds such as customers inability to made payments, or sellers inability to ship the goods.

Nonpayment punishment
Imposed a punishment for the buyers who did not honor their winning bids by issuing sterner warning, suspending the users temporary or permanently.

Appraisal services
By providing the user an appraisal services in an on-line mode to appraise the value of the auction item.

Physical inspection
Provides the buyers an inspection services at regional basis by arranging the buyer and sellers to meets and inspect item.

Corporate Blogging: A new marketing communication tool for companies

Corporate Blogging is published and used by an organization to reach its organizational goals. Posts and comments are easy to reach and follow due to centralized hosting and generally structured conversation threads. Corporate blog includes internal blogs, external blogs and CEO blogs.http://en.wikipedia.org/wiki/Corporate_blog


Example of corporate blog is http://direct2dell.com/one2one/default.aspx. It is a blog about Dell products, services and customers. It is useful in terms of providing information to customers or online users about their latest news. For example, recently Dell has created its new home page by redesigning it. It is focusing on function and beauty of the home page. The other issue is about Dell’s producer is going to recycle and reuse those electronic equipment. Implementation of such corporate blog may make the customers more familiar with the company’s products and services. In addition, the strategy plan can also be known by public. It may boost up the reputation of the company.


There are several advantages of corporate blogging. It may provide space where interpretations and different points of view come up so that the any member of the organization can discuss and debate them. It provides a useful communication tools for member of organization to voice out their comment and helps increase member commitment. Besides, it helps in improving participation spirit, collaboration, and the capabilities of team learning. It is also useful to promote dialogue and find lateral ideas outside the team.


On the other hand, it leads to the sharing of information, which could be harmful for employees or the company. There are cases where a company has been held responsible for comments made by some employees that adversely affected the others. Moreover, some employees may use the blog to write negatively about the company, leading to bad publicity.

Credit Card debts: Causes and Prevention

Most of the people now are holding at least one credit card in their hand. Credit card is a type of “post-paid” payment method that enables the card holder purchase 1st then makes payment later. For example visa card and master card. It is very convenient as the card holder does not need to bring a lot of cash out to buy a particular thing. However, due to its convenient and it is a post paid service, there is huge amount of credit card debts that owed by the card holders.


What are the causes of credit card debts? For most of the card holders who are over 21 years old, the big reason is they use their cards without anticipating how the bills will be paid off. Normally, they will spend more than what they can earn. When the credit card bill comes and the holder is unable to pay the bill, he or she will postpone the payment of the bill. This will cause the amount due become more and more because of the interest charged. For the people who always do not consider well before purchasing, it is easier to cause a huge amount of debts.

Thus, prevention is better than cure the credit card debts. Firstly, get a credit card that has the lowest interest rate possible so that you do not need to pay higher interest charged. Secondly, do not always depend on the credit card and get use on it. If can, use cash to purchase and only use the credit card in emergency. Besides that, do not buy anything that you cannot afford and useless.


There are many cases of credit card debts caused the holders become “bankrupt” and commit suicide due to unable to pay off the debts. Thus, better consider carefully before purchasing anything by using credit card.

E-Government in Malaysia: Its Implementation So Far and Citizen’s Adoption Strategies.

E- Government refers to the use by government agencies of information technologies (such as Wide Area Network, Internet, and mobile computing) that have the ability to transform relations with citizens, businesses, and other arms of government. As far as Malaysia is concerned, the implementation of e-government was initiated with the introduction of the Multimedia Super Corridor (MSC) in 1996 and in the survey, Malaysia’s ranking is 25^th out of 32 countries in terms of e-government usage growth.

The implementation of e-government in Malaysia heralds the beginning of a journey of reinventing the government by transforming the way it operates, modernizing and enhancing its service delivery. E-government seeks to enhance the convenience, accessibility and quality of interactions with the public and businesses at large. Simultaneously, it will improve information flow processes within the government, improve the speed and quality of policy development, and improve coordination and enforcement. This would enable the government more responsive to the needs of its citizens.

There are seven main projects were indentified to be the core of the e-government applications under the e-government flagship:

i) Electronic Procurement (eP)

ii) Project Monitoring System (PMS)

iii) Electronic Services Delivery (eServices)

iv) Human Resource Management Information System (HRMIS)

v) Generic Office Environment (GOE)

vi) E-Syariah

vii) Electronic Labour Exchange (ELX)

Citizen’s Adoption Strategies.

Generally, new technologies are forcing governments to be particularly attentive to time. In order to make the right decisions and avoid falling behind, government must identify and resolve the different issues that have arisen from the transition period during which traditional and e-government co-exist. Rather than just focusing on introduction of ICTs, government should decide on, guide and control the transformation of government into e-government. The use of ICT to strengthen the involvement of citizens and businesses in public decision-making must progress at the same time. In conclusion, implementing good strategies must be addressed carefully. Otherwise, e-government will remain a misleading, cosmetic operation.

The Application Of Pre-Paid cash card for consumers.

The prepaid card is far from a new idea. The concept is basically the same as a prepaid gift card or a mobile phone SIM card and it focuses on making payments fast, easy and convenient without the hassle of preparing for small change or bringing large amount of cash in hand. A prepaid cash card looks like a credit or debit card. It gives the users the ability to purchase products and services with a card, but only up to a certain limit, which is the amount the user has preloaded into the card. This means there is no risk of running into debt as it has no credit or overdraft facility.



One of the prepaid cards available in Malaysia is the Touch-n-Go card. The Touch-n-Go is most commonly used pay highway tolls, public bus and trains fares, selected parking sires and theme park. Recently, the card’s functions have expanded to include making payments at A&W, Burger King, Dunkin’ Donut, 7-Eleven and the Carrefour hypermarkets.

note : http://www.touchngo.com.my/WhatTNG.html

When using for purchasing retail products and services, they work exactly the same way as a credit or debit card. Just simply hand over the card and for authorization, you will be asked to either enter your PIN number (supplied with the card) on an electronic keypad or to sign a payment slip for signature verification which is to be compared and matched to that on the back of the card (if there is no Chip on the card). The total amount will be minus off from the card immediately and thus, the transaction is completed.

To shop online, once you have decided to purchase the product, all you need to do is to fill in your prepaid card details. As long as there is enough cash preloaded into your card, the purchase transaction will be allowed and your item will be shipped to you.

One can simply start using prepaid cash card when money has been loaded on to a prepaid card by cash at a bank, Post Office, at Payzone or PayPoint terminals, bank transfer, through your employer or even by credit card.

Application of pre-paid cash card for consumers includes :

• Buying groceries and petrol


• As a replacement for travellers cheques or travel cash for a low cost alternative to paying for goods and services abroad


• Topping up your mobile phone


• Internet shopping including eBay


• Paying bills


• People who wish to use foreign currency on a holiday


• Newly arrived immigrant, who although already earning, cannot yet obtain credit due to having no credit footprint in the UK


• A person who has a poor credit rating or a history of bad debt who cannot get a credit card
  

Mobile Payment Systems In Malaysia: It's Potentials And Consumers' Adoption Strategies

Mobile payment systems is a point-of-sale or money payment transaction via mobile device such as mobile phone, small phone, digital phone and other device. The mobile payment can be used to purchase any number of digital goods and physical goods through SMS. For example digital goods are ring tones, games, wallpaper for mobile phone and the booking cinema ticket and air ticket. Recently, mobile payment system have become popular in Malaysia. This service provides customers effective money off vouchers. This service provide to all mobile operators in Malaysia.

In a nutshell, with more than 16 million mobile phone subscribers in Malaysia, it is inevitable that mobile phone will become a payment tool. Mobile Money enables the mobile phone to function like a credit card and it allows users to pay from wherever they may be without disclosing their credit card details.

Mobile payments allows the merchant to sell to people across town, across the country and take payment around the clock, which is not possible with current payment systems. This also means that the consumers are allows to buy the products or services from the merchant at their convenience.

With Mobile payments, merchants do not have to be concern of cash /cheque/credit card handling problems or fraud. The Mobile Payment System in Malaysia conforms to the stringent requirements set by Bank Negara Malaysia and the participating banks. This is the same case for the consumers too, transactions are guarantee.

With Mobile payments, merchants and consumer will have multiple mode of operation to request and made for payments. Merchants and consumer can use an IVR, SMS. Mobile Payments system can be integrated with the POS (Point of Sales) System or online storefront system.

Mobile payments provides an easy and simple interface for the consumer to track and monitor all transaction and settlement records All information at the user fingertips by just accessing the web application at Mobile payments website.

Mobile payments, provides an options for the merchants to do reversal (within same business day) and refund (within 10 days from transaction date).

Phishing: Examples and its prevention methods

Phishing is an attempt to acquire sensitive information criminally and fraudulently, such as usernames, passwords and credit card details, in an electronic communication. PayPal, eBay and online banks are common targets. Phishing is typically carried out by e-mail or instant messaging and often directs users to enter details at a website.



Chart: Increase in phishing reports from October 2004 to June 2005.



EXAMPLE:
(1) phishing e-mail targeted at eBay users.


Take from: http://www.comfsm.fm/~dleeling/training/phishing2.html

(2) phishing e-mail, disguised as an official e-mail from a bank.



Taken from: http://en.wikipedia.org/wiki/Image:PhishingTrustedBank.png

(3) phishing e-mail targeted at Paypal users.



Taken from: http://en.wikipedia.org/wiki/Image:Paypal_Phishing.png

(4) phishing e-mail from Citibank.



Taken from: http://www.bankrate.com/brm/news/advice/Phishing-email.asp


PREVENTION METHODS

It is easy to uncover a crude phishing by the way of when you get an email from a bank that you have never opened an account at, then do not follow the link and enter your personal information. However, if you have an account at the particular bank, it is easier for you to check whether the bank had sent the email for you by calling the particular bank.Besides that, you must read the message carefully whether there are any errors on it. It is because the errors found can determine whether the message is sent by the particular institution or the phisher.In addition, you should examine the link that provided in the email. For example, the email could gives you instruction to access to http://banking.about.com/od/securityandsafety/index.htm but if you click the link you will found that you have been directed to a different site. The best way to prevent this is to copy and paste the link to your address bar. However, you can still get tricked by URL’s that look legitimate but have one or two letters switched.The best way to avoid phishing is to use your best judgment. No financial institution with any sense will email you and ask you to input all of your sensitive information through online. In fact, most institutions will inform their customers that “We will never ask you for your personal information via phone or email”.

The threat of online security : How safe is our data?

In the modern era, we have come to depend on our computers to create, store and handle essential information. Therefore, computer security is extremely important to protect ours data from loss, damage, and misuse. The extent of online security to protect the web site from potential threats has become the main concern of online trader.

Nevertheless, the advancement of technology has increased the risk faced by computer users. Nowadays, anyone can have easy access to tombs of hacking knowledge through the easily available and affordable internet, therefore indirectly increasing the threat to online security.

Computer users are exposure to the threats of cyber crime, phishing, internet and network attacks such as computer viruses, worms and Trojan horses and back doors.

Cyber crime is defined as online or internet-based illegal acts. Cyber criminals include hackers, crackers and corporate spies with advance computer skills who access computers and networks illegally with the intent of destroying data, stealing proprietary data and information.

Phishing is a scam in which a perpetrator sends an official looking e-mail that attempts to obtain your personal information and financial information. For example, some phishing e-mail messages ask you to reply with your information, or a pop up window that looks like a website, that collects the information. The damages caused by phishing can be crucial. In 21 June 2007, a spear phishing incident at the Office of the Secretary of Defense (OSD) stole sensitive U.S. defense information, leading to significant changes in identity and message-source verification at OSD. This incident has cost administrative disruptions and personal inconveniences, as well as huge financial loss in making system recovery.

Internet and network attack that jeopardize security include virus, worm, and Trojan horse. Virus is a piece of code that is secretly introduced into a system in order to corrupt the system or destroy data. Virus attack can damage the operating system, causing the loss of data and other possible losses. A worm is a program that copies itself repeatedly. The repeatedly copied files use up the available space and slow down a computer operating speed. On the other hand, a Trojan horse is a program that hides within or looks like a legitimate program. Although they seem to be harmless, they may however be triggered if certain condition is certified.

A back door is a set of instructions in a program that allow users to bypass security control when accessing a program, computer, or network. Once perpetrators gain access to unsecure computers, they often install a back door or modify an existing program to include a back door, enabling them to continue to access the computers remotely without the user’s knowledge.

Ultimately, safeguards developed must be always up to date to enhance the defenses against online security threats. In the same time, users must be educated and informed about the crucial damages and loss caused by imposing online security threats.

The application of 3rd party certification programme in Malaysia.

MSC Trustgate.com Sdn Bhd is a licensed Certification Authority (CA) operating with the Multimedia Super Corridor. MSC Trustgate was incorporated in 1999 to meet the growing need for a secure open network communications and became the catalyst for the growth of e-commerce, both locally and across the ASEAN region. At present, MSC Trustgate has 12 million in paid up capital.

Trustgate is licensed under the Digital Signature Act 1997 (DSA), a Malaysian law that sets a global precedent for the mandate of CA. The objective of MSC Trustgate is to secure the open network communication from both locally and across the ASEAN region. As a CA, Trustgate’s core business is to provide digital certification services, including digital certificates, cryptographic products, and software development.


The product and services of Trustgate are SSL Certificate, Managed PKI, Personal ID, MyTRUST, MyKAD ID, SSL VPN, Managed Security Services, VeriSign Certificate Training and Application Development. The vision of Trustgate is to enable organizations to conduct their business securely over the Internet, as much as what they have been enjoying in the physical world.

The Digital ID is use to secure transactions. This will help to ensure user confidential information remains private in transit by using the Digital ID to sign and encrypt the transactions. Besides that, it allow user to secure files and documents with a single-click of the mouse button. Digital certificate is use to encrypt the files so that only the intended recipient with user’s public key can decrypt it. The encrypted file can be safely stored in any medium or send over the less-secured web-mail. Digital ID is also use to sign and encrypt user e-mail to ensure user’s confidential e-mail remains private. By installing it in a user’s web browser or e-mail software, MSC Trustgate.com Digital ID serves as an electronic substitute for handwritten signature and sealed envelopes. It digitally signs the e-mail messages to assure user’s recipients that the e-mail really comes from the user. Encrypting the e-mail contents and attachments help to protect them from being read by online intruders.


Meanwhile, Malaysia government has put in use a smart National Identity Card, the MyKad, for every citizen. MyKad have the Public Key Infrastructure (PKI) capability which allows its holder to conduct online transaction with the government agencies and private sectors. MyKey, is the MyKad PKI solution that works with the user physical MyKad, allows users to authenticate themselves online and to digitally sign documents or transactions. Trustgate is the prime PKI developer and integrator for MyKad. It also offers various MyKad PKI modules for developer who wishes to developer who wishes to develop MyKad applications.

Finally, with MyTrust, user can turn a SIM card into a Mobile Digital Identity for secure mobile baking and other financial services. Mobile digital signature provides non-repudiation on transactions under the Digital Signature Act, 1997. It runs on Wireless PKI platform and Mobile Operator infrastructure. PKI-enabled SIM cards are preloaded with MyTrust application and a digital certificate from a licensed Certification Authority. Users are able to digitally sign any transaction with ease and convenience via their mobile phone.

How to safeguard our personal and financial data?

Today, most people rely on computers especially the Internet to create, store and manage critical information. Information transmitted over the Internet is more vulnerable and has a higher degree of security risk than internal networks because they are open to anyone. As Internet criminals grow smarter and sneakier, it is increasingly difficult to keep our personal and financial data safe. Therefore, I strongly believe that it is important that users take preventive measures to protect oneself from falling victim to fraud or identity thief.

Here are several approaches of my choice on how to safeguard our personal and financial data:

1. Be vigilant and cautious about providing your information
   Do not disclose bank account numbers, credit card account numbers, and other personal financial data on any Web site or online service location, or on the phone, or through the mail unless you receive a secured authentication key from your provider. Crooks may pose as representatives of survey firms, banks, Internet service providers and even government agencies to get you to reveal your SSN, mother's maiden name, financial account numbers and other identifying information. It is important to know that by even giving simple personal information such as date of birth and mother's maiden name can be just as dangerous as financial information.
   
   
2. Never open mystery attachments
   Never open an attachment or click on a link sent to you by an unknown party. Attachments can contain viruses and links can lead unsuspecting users to dummy sites where they are asked to input financial information.
   
   
3. Avoid accessing financial information in public
   Resist logging on to check your bank balance when working from a coffee shop that offers wireless access. These systems are convenient, but also unknown. Casual users have no way of assessing how sturdy their firewalls are.
   
   
4. Choose you PIN wisely
   While you want to choose something you'll remember, you don't want it to be something that a clever thief could figure out just by learning your birth date or your child's name. A combination of uppercase and lowercase letters, numbers, and symbols will offer you more security. Never write this information down and never carry it in your wallet or briefcase.
   
   


5. Pay attention when using an ATM
   Be aware of others nearby when entering your Personal Identification Number (PIN) at an ATM. Keep your eyes peeled for anyone who seems a little too interested in your transactions. Use your free hand to shield the keypad when entering your PIN.
   
   
6. Update your browser regularly
   Updating your browser on a regular basis can help plug up security holes, so make it a habit.
   
   
7. Install a firewall
   A firewall is a software program designed to allow good people in and keep bad people out. Most new computers come with firewalls integrated into their operating systems. Those who have a DSL or cable modem have an added layer of protection because these modems come with yet another firewall built in. If you have an older computer or use dial up, you may need to purchase a firewall separately and install it yourself.
   


8. Install and update antispyware and antivirus software
   Microsoft and numerous application vendors offer users regular updates to existing antispyware programs, so be on the lookout. As for antivirus protection, Symantec and Norton antivirus are popular choices. It cleans the computer and protect personal information, financial data and etc.
   

An example of an E-Commerce SUCCESS and its causes.

Amazon.com, Inc. is one example of an ecommerce success.

Amazon.com, Inc. is an American electronic commerce (ecommerce) company in Seattle, Washington. It is America's largest online retailer, with nearly three times the internet sales revenue of runner up Staples, Inc. The domain amazon.com attracted at least 615 million visitors annually by 2008 according to a Compete.com survey. This was twice the numbers of walmart.com.

Amazon.com, Inc. was founded by Jeff Bezos in 1994 and was launched online in 1995. It started as an on-line bookstore but soon diversified to product lines of VHS, DVD, music CDs and MP3s, computer software, video games, electronics, apparel, furniture, food, toys, etc. Amazon has established separate websites in Canada, the United Kingdom, Germany, France, China and Japan. It also provides global shipping to certain countries for some of its products.

On 15 January 2009, a survey published by Verdict Research found that Amazon.com was the UK's favorite music and video retailer, and came third in overall retail rankings.

There are a number of causes for the success of Amazon.com. One of them is the continuous study of the buying pattern of consumer that results in continuing making their customers happy. Amazon.com attracts and retains their customers by offering various rewards to their customers. Besides, Amazon.com also provides the free of charge additional services such as gift-wrapping to their customers. Amazon.com has also managed to improve their shipping system throughout the year.

The second cause is an effective marketing process. Amazon communicates with their customer frequently and effectively. The punctuality of the product shipping also contributes to the effective marketing process. Amazon.com has increased their capabilities to quote the available product on the real time basis.

In addition, Amazon.com also acts as a middleman between the consumer and other retailer. Amazon.com will refer customers to other retailers if certain items are not available in theirs company. Customers can use the ‘shop the web’ search service to search for other retailers.

Finally, the strong public recognition enables amazon.com to earn a high margin profit and focus on the business expansion activities.