ELECTRONIC COMMERCE: SMART IDENTITY CARDS MIGHT REASSURE USERS.

PositionIndustry Trend or Event

The report argues that there is a need for greater security in electronic commerce since this mode of transaction has not enjoyed the development anticipated, largely owing to a lack of confidence among consumers.In America, on-line transactions represented just 0.68% of retail trade over the first half of 2000, according to the United States Trade Department. In France, about 200 retail traders offered their services over the Internet in 1999, though trade accounted for less than 0.1% of total turnover from the sector. Turnover is currently broadly equivalent to that of three supermarkets. According to the report, the fault does not lie with the equipment used by consumers to access the Internet: in Finland, the country with the highest connection rate in the world alongside Sweden, electronic commerce has not enjoyed more rapid growth than elsewhere. By contrast, all enquiries show a demand for greater security in electronic transactions: the sector will only develop if buyers and vendors can trust one another.The report represents the conclusion of a process set in train in May 2000, shortly after the "Humpich" case hit the headlines, raising doubts over the security of the French bank card system. Serge Humpich, a 36 year-old computer genius, was given a suspended ten-month prison sentence on December 18 after developing a system for tricking payment terminals with a programmable smart card.Software to manufacture bogus cards.Software regarded as a genuine machine...

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