E-commerce fraud is one of the main issues faced by a business conducting its operation online. This is especially true for e-merchants and e-tailers. The law provides these companies with protection if they get their business incorporated and register with the government through trademarks. Moreover copyrighting the information on the website and setting up active firewalls and security software can also protect the company against such issues. “Businesses desire unrestricted encryption use to protect their trade secrets, financial information, patents, and customer information. Business also needs to ensure that communicated documents are intact, not tampered with, and authentic. “Unprotected communications may be read and their contents stolen by unintended recipients.” (Ragothaman, Davies & Dykstra, 2000)
Other solutions that can be implemented in order to decrease risks and avoid legal issues from culminating online pertain to establishing a sales tax on the use of the website. This has become mandatory as the online business tends to earn form pay per click strategies as well. Aside from, the businesses are also required to encrypt their sensitive data and provide privacy based access rights to their selective employees. Additionally the businesses are also instructed to respect the privacy rights of the customers and act accordingly. The law also requires for there to be electronic agreements to be present between parties trading or exchanging monetary items or products and services online. These agreements need to be property exchange and agreed upon. Aside from e-businesses are also required to have digital signatures which they can use in online transactions for providing the genuine nature of the transaction and protecting themselves as well as the customers from fraud.