Chapter 3 The impact of ICE on society 1

In this chapter you will learn about:

o online services such as online transactions

o online shopping
o online banking
The effects of the use of online services on society in terms of:

o employment issues
o increased leisure time
o changing working patterns
o security and privacy of data
o health and safety issues.

Online services
We can use the Internet in many ways. It is very useful for finding out information about a
number of different topics its also be used by companies to provide services for users of the
Internet.

There are different types of online services, but these can be broken down into main three
areas:

1. People can pay online for services provided by particular organizations.

2. People can do their shopping online
3. Bank customers can use online banking.

In order to carry out these activities, Internet users need some basic hardware and software.
In terms of hardware they need to have a personal computer with a modem.
The only software they need is an Internet browser.

Online transactions and other services:

There are now available in many ways. For example, at local government level in the UK, people
can pay their council tax, parking fines and many more items. There are other services which can
be paid for at national level, such as car tax.

Some of these services require payment online, such as:

applying online for a first provisional driving licence

applying for a tax disc online
booking a theory or practical test online
ordering official learn-to-drive books, DVDs, etc. online.
Many banking services called card payment gateway systems are now available. These make it
possible for companies and businesses to accept credit card payments online. Electronic payment
also known as e-payment is very convenient. Modern businesses and companies find it
essential to accept electronic payments.

Other services are just for information and are not, therefore, transactions, for example:

finding the location of disabled parking bays

checking a certificate of roadworthiness record
using an online calculator to calculate CO2 emissions and vehicle excise duty
finding a personalized registration plate.

There are many other examples of online services that would not be called transactions,
such as:
Customers arranging for packages to be picked up and delivered to a destination of their
choice- for a fee
People filling in their tax returns and making tax payments
Reserving and renewing library books.

Online shopping
It is important at this stage to explain the distinction between the Internet and the worldwide
web. The Internet is often defined as being a network of computer networks connected together
by routers, and can be thought of as the cabling and connectors as well as the computers
themselves.

The worldwide web is just one aspect of the Internet, along with e-mail, file transfer and so on.
It is a collection of hypertext documents; menus etc., often in HTML format. It is an information
retrieval system that needs a web browser to access it. The worldwide web was invented by Tim
Berners-Lee, an Englishman, in 1989 while he was working at CERN, a scientific research
centre in Switzerland. The first website built was at http:\\info.cern.ch/ and was put online on 6
August 1991.

The first instance of companies allowing their customers to purchase products using the Internet
happened in 1994, when Pizza Hut offered customers the opportunity to order pizzas on its web
page. Amazon was founded as an online bookshop in 1995 and now operates separate online
shopping sites in Canada, China, France Germany, Japan, the UK and the USA. According to a
recent Amazon statement, the company currently ships items to 217 countries.

An online shop can be called by other names such as Internet shop, web shop or online store.
It is an electronic commerce (c-commerce) application that businesses can use with each other
or they can offer services or goods directly to the customer.

Online shopping has become very popular for many reasons:

Items are usually cheaper online because warehouse and staff costs are lower, and because
shops that only operate online want to attract and keep customers.
Some shops allow customers to get products at the cheaper online price by ordering online,
reserving the product and then collecting and paying at the shop.
Customers can compare products and prices at their leisure.
Customers can shop at a convenient time for them.
 Customers can shop at their favourite shop even when they are miles away.
Food shops can remember the customers shopping list and favourite brands, and deliver at a
time to suit them.
Customers can shop around without having to spend time and money travelling around
different shops.
The Internet allows customers to look at a wide range of shops all around the world.
There is a greater choice of manufacturers. Many main street shops can only stock items from a
few manufacturers because of space and cost constraints.

Although it saves customers the cost of travelling to the shops, online shops tend to charge
delivery or postage costs, which reduce, or even remove, the advantages of not having any
travelling costs.

The purchase of goods from a foreign country can also be problematic. The monetary exchange
rate between two countries can rise, so what may appear to be a good bargain when the goods
were purchased may turn out to be more expensive when the payment is actually made.

Another problem is that the country where the customer lives may impose some sort of tax on
the goods when they are shipped into the country, resulting in the customer paying even more.

Let us now look at how au online shop operates.

Purchasing goods
There are a number of steps which customers may go through when buying online.

1.Deciding which online shop to use

It is possible to use price comparison services. These are sites that show you the cheapest price
for a particular item. These are sites generally do not accept liability for any transaction resulting
from the use of their sites.

2. Browsing product categories

Most online shops have a number of categories on their home page. These can be represented by
icons which are clicked on to go to a category of products that they sell. Frequently, such sites
use tabs at the top of the page which link to a different web page on the site for each category.
Customers are invited to choose the category they require by clicking on it and then they can
look through (or browse) the individual products to get to the one they want.

3. Using the virtual shopping basket

Having decided which product the customer wants, they place it in their shopping basket.

As in a real shop, the contents of the basket can be added to, removed or changed. When the
customer has decided that they have finished shopping and they want to pay, they go to the
checkout.

4 Going to the checkout

Here is an example of the sequence of events leading up to payment. Note, however, that the
actual sequence of events may differ from site to site.
If the customer has never used this shops site before they may need to register by choosing a
username and a password. Customers then enter their personal data, which usually includes the
following:
 The billing address where the bill will be sent
A shipping address where the goods will be sent to; this might be different to the billing
address
The customers phone number
an e-mail address this is nearly always needed, as most sites want to be able to send the
customer notification that they have received the order; using e-mail, shops can tell the customer
when the order has been dispatched.

However, customers who have already registered with the shop on a previous visit just need to
log on using their username and password, rather than entering the above data.

Another step is to choose the method of payment. There are several alternatives, but the most
popular is to pay by credit card or debit card. Cheques can be used but this usually means that the
delivery time will be longer, as the shop has to wait for the cheque to clear. It is sometimes also
possible to pay on delivery, but this is not so common as the other methods.
Another step is for the customer to choose how quickly the goods should be delivered as well as
the method of delivery.

Whatever method is used, the customer usually has to pay a delivery charge in addition to the
price of the goods.

The final steps are to confirm the order and to log off. All online shops will ask you to confirm
the order you want to place. This will be the last opportunity for the customer to change their
mind and not go through with the order.

Finally, after confirming the order, or not, the customer must log off from the system.

Security issues
If the customers personal data and payment details were intercepted by a hacker they could be
used by the hacker to defraud both the shop and the customer.
The data could be used to log on to the shops computer system and order a large number of
products which can be dispatched to another address other than the credit owners. For this
reason, some online shops will only dispatch to the billing address. The hacker now has
possession of these goods which they can sell on and the shop and the customer are left to
dispute who is responsible and who should pay the bill. Once the hacker has the credit card
details, they can also be used to make purchases at a number of other shops. This is just a small
part of identity fraud.
In order to protect customers, personal data and payment details are encrypted when they are
transferred over the Internet. This means that data is encoded so that anybody who intercepts the
data, such as a hacker, is unable to decipher the meaning of the data. The data can only be
decoded if the receiving network server has the correct encryption key.

Customers should be aware that:

if their credit or debit card is used fraudulently, in many countries the card company must
refund them
They should keep a copy (printout) of what theyve ordered, in addition to a copy of the
suppliers confirmation message
Their consumer rights (e.g. refunds for faulty goods) apply online
They should only use reputable sites.
Selling goods
There are many reasons why companies sell their goods online. They can save a lot of money;
for example, they do not need to pay shop assistants or rent buildings on expensive main streets,
nor do they need to answer a lot customer questions before the sale of goods. They can compete
with larger businesses by reaching a much wider audience, possibly worldwide, and being open
24 hours a day, seven days a week, giving them the opportunity to increase sales. Costs
associated with processing orders are lower due to customer orders automatically coming straight
into the companys orders database from the website. Companies also receive payments more
quickly because payment is made online. Finally, companies can keep track of purchases and see
which are the most or least popular products.

Before a shop goes online, it has to have a website with an easy-to-remember domain name that
is related to the business. The domain name or website address will also be used for e-mail. The
company needs a high-specification web server that will operate 24 hours per day.
To operate online, the shop needs to have a method of accepting payments. It will also need a
secure server, shopping cart software and software to keep track of stock and orders. The shop
will need to incorporate into its website a database of product names, descriptions, pricing and
photos.

The online shopping system must allow the administration staff to add, edit and delete
categories, products, manufacturers, customers and reviews. Usernames and passwords are
essential to make the system secure. These staff must be able to contact customers directly via e-
mail. They must also be able to back up and restore the database easily. They will need to have
access to statistics for products and customers, as well as being able to select what to display, and
in what order, in the product list page.

The online shopping system must allow customers to make use of the orders stored in a database,
finding them quickly and easily as well as seeing their order history and being able to maintain
their own accounts. Prospective customers should be able to use a temporary shopping basket if
they are a guest or a permanent shopping basket if they are returning customers.
There will need to be a friendly user interface so that searches and advanced searches can be
carried out easily and allow customers to progress smoothly to the checkout. Finally, customers
should be confident that all transactions are secure.

Online banking

Opening and maintaining bank accounts many customers are using online banking because of the
convenience of banking at any time of day (or night) and the reduced amount of time and fuel
costs incurred when travelling to and from the bank. Security and fraud are issues that are
considered in some detail in Section 3.5.

Online banking usually offers such features as:

Up-to-date bank statements
Bill payment
Transfer of funds between the customers different accounts
Loan applications
Higher interest rates for savers because of lower costs.
There are a number of steps that customers go through when banking online. The details of
different banks websites differ, but they all use a similar procedure.

1. Customers have to log on

In order to log on to some banks, customers go to the websites online banking page. They are
asked to type in their user ID, or username.
After they have done this they may be taken to another page before being asked for security
information.
2. Security information
All sites require customers to type in a password. Some will ask for additional information such
as a favourite place or their mother name or their date of birth.

3 Account information and services available

The next page will have a list of the customers accounts and account numbers, together with
links to the customers personal details. There is also a list of the different services that the
customer can apply for.

4 Account details
When the customer selects a particular account, all the recent transactions are listed. A number of
services are now available, although these differ from bank to bank.

Main transactions which the customer can do online:

order a bank statement

go to a summary of the customers bank charges
pay a bill
transfer money between accounts
get account details
change or create standing orders and direct debits
stop a cheque
get a new PIN sent to them.

Security issues
An example of possible identity fraud runs like this. Sadiq gets a loan from the bank by
pretending to be somebody else, say Rajvinder. Sadiq uses personal information about Rajvinder,
such as address, birth date and bank account number that he has obtained by hacking into a
database. He manages to convince the bank that he is Rajvinder. Sadiq does not pay back the
loan and the bank thinks it is Rajvinder who has taken out the loan. They expect Rajvinder to pay
the loan back. When he cant or wont, this causes him to have a poor credit rating so that he
cannot borrow money himself.

Advantages to banks using online banking

They dont have to rent so many main street premises, which can be very expensive.
They can employ fewer staff, which means that they pay less in staff wages. They also have
lower costs, as they dont have to pay running costs of the branches for electricity, heating and
lighting.
Because of their lower costs, they can offer higher rates of interest for savers and lower rates of
interest for borrowers, thus attracting more customers.
There is less likelihood of the bank being robbed.
Less money is spent on security staff.
Disadvantages to banks using online banking
There is a less personal touch and so it is harder to sell other services that may be available.
There is potential for fraud and interception of account information by hackers, resulting in the
banks losing money.
There are still costs involved in running the business, such as having to pay website developers.
There are initial costs, such as buying the hardware when starting up.
They need to retrain staff, which is costly.

Disadvantages to customers using online banking

They may lose contact with their friends as they may not go out of the house as much.
Customers must have a computer, Internet access, basic computer skills and a reliable
electricity supply.
There is a small risk that hackers may intercept data and take money from the customers
account.
Customers may not like the fact that the bank is not providing the personal touch
Customers may mismanage accounts now that it is so easy to transfer money from one account
to another.
Because customers must use the phone line to carry out online banking, their phone bills can
increase.
If customers dont have broadband, other family members will not be able to use the phone at
the same time as one person is using online banking.
Customers are unable to make cash deposits or withdraw cash without physically going to the
bank or to an ATM.
Customers may receive e-mails that claim to be from the bank but are fraudulent, asking them
to give out bank details, including passwords. This is called phishing.

3.2 Online services and employment

The introduction of online services has had two effects on employment. Some staff have lost
their jobs because the use of ICT has replaced the need for some types of worker, for example
shop assistants and bank clerks. However, the other effect has been an increase in the need for
workers in more technical aspects of work.

General unemployment
Before looking at the specific effect of offline services on unemployment, it is useful to consider
a few examples of how other aspects of ICT have affected unemployment.
There are many areas where the use of ICT in the fields of business and commerce has generally
caused unemployment. Many car workers have lost their jobs when car manufacturing
companies have introduced the use of robots into factories. Jobs that used to be done by clerical
workers have been replaced by computers; for example, the calculation of payroll, the issuing of
invoices and requests for payment and receipts of payment.

The main reason for these changes has been cost, although there have been other factors.
These are discussed below:

Repetitiveness and accuracy

Robots are used because certain tasks must be performed in the same way and with the same
degree of accuracy every time. Many jobs such as car assembly have little need for feedback and
so do not require human judgment and reactions.
Time and automation
Office jobs have been replaced or have changed due to the introduction of computers in the work
place. One such office application is the production of the workers payroll. Many payroll
systems required a great deal of paperwork. The number of hour's people worked and their rate
of pay used to be written down manually and their wages would be worked out using calculators.
The results of the calculations would then be typed out manually. Now, computers are used to
carry out the whole process. The only need for any manual input is to have somebody type in
details of the workers. Even here, the manual entry of weekly data such as hours worked tends to
have been replaced by computers using direct data entry methods (e.g. magnetic cards). In the
same way, online services can use many automated services to reduce the amount of time and
paperwork required for each transaction.

Bank workers
The introduction of online banking has seen a reduction in the need for certain types of worker.
Bank cashiers are now no longer needed in the numbers that used to be required. Both the use of
ATM machines by many customers and the increase in online banking have led to fewer cashiers
being needed.

Shop workers
The use of online shopping has also led to fewer workers being required, so the number of shop
assistants has fallen dramatically. For example, in Europe the number of shop workers who are
unemployed form the second highest group of unemployed workers in the region. In addition,
fewer staff are required to organize stock control, due to the introduction of electronic point of
sales (EPOS) terminals. These use barcode readers to input product data and are often linked to
automated stock control systems.

New employment opportunities

With the introduction of online services and the use of ICT in the business sector generally, there
have been new jobs created. Furthermore, most jobs in any aspect of industry, business and
commerce now require some ICT skills, leading to an increase in the need for skilled workers.
As new ICT systems are introduced and updated, systems analysts are in great demand. Systems
analysts analyze existing systems and recommend the design and implementation of new
systems. In addition to systems analysts, computer programmers are needed to write code for the
new systems. Many new systems require the creation of a website for the organization
concerned, which involves the services of website designers and authors. Computer technicians
are required to install and service the computer hardware. All these people are needed by online
service providers to create and maintain systems.
The need for help desk or support staff has developed. When people have problems with the
system, be it online shopping or banking, they need to be able to contact somebody for help.
In addition, call centres have created fresh opportunities, particularly for women in developed
countries and for men and women in developing countries.

3.3 Online services and leisure time

The effect of the use of online services is to allow the possibility of workers working fewer
hours. As has been mentioned above, the use of online services has caused an increase in the
unemployment rate in many work areas. The alternative for companies who do not wish to make
too many of their workers unemployed is to reduce the number of hours employees work; rather
than reducing the number of workers.
Many people think that the increased use of online services has caused a reduction in the number
of hours employees are required to work. However, there is evidence to suggest that the use of
ICT has not provided more leisure time. People who have studied the worklife balance of
many workers are suggesting that for many people new technology has had the opposite effect.
Rather than decreasing the average employees workload, the expectation by employers is that
people should take work home. Often employees are phoned at weekends or after hours to do
something. Most people have computers at home. This means that, instead of reducing the
number of hours they work, they just take the work home with them and do it there.
Another factor to take into consideration is the level of pay of many workers. It is possible, and
many governments have passed laws to make sure it happens, for workers to reduce the number
of hours they work. However, fewer hours worked means less money. Most workers want to earn
as much money as they did before this cut in hours. Many workers, therefore, volunteer to work
longer hours than the government says they have to. This is legal provided the employer agrees.
Employers cannot make them work this long but workers may choose to do so. The effect of this
is that the number of hours a worker actually works has not changed, despite the introduction of
online services.
It can be argued that the introduction of online services has affected more people than just the
employees. Because so many activities, such as shopping and banking, can be performed online,
most people now have more leisure time as they dont spend so much time going to shops or
banks.

3.4 Online services and working patterns:

ICT developments, including the increased use of online services, has increased the amount of
flexible working that organizations can offer their workers. Flexible working is any working
pattern that can be decided by the employee and is not the normal 9 to 5
In this section we will be looking at different types of flexible working such as:
Part-time working
Job sharing
Flexible working hours (sometimes referred to as flexitime)
working from home
Compressed hours
moving from branch to branch.

Part-time working
This is when people only work a limited number of hours.
The use of online services means that there are fewer jobs available but an advantage is that
workers can work less than the normal full-time hours. The number of hours worked can vary
from a few hours a week to just less than full time.

One of the benefits to employers is that these workers can be used at the busier times or a
business. Another is that it can help to retain and attract staff. Also, where fully trained staffs are
retained, this means that the company or business will not have to spend money on training new
people how to do the work. Online services also need call centres or help lines at need to be
available in the evening. Most full-time employees do not like working at these times, so shops
and banks have to employ part-time workers.

One of the benefits for workers is that they can organize their life outside work more easily.
Another is that workers can continue in the job they have been used to doing. If they had to
change jobs they might lose their skills and self-confidence.
There are some problems for workers, however. Part-time workers are less likely to receive in-
work training than their full-time colleagues. Those working part time earn considerably less per
hour than full-time workers. The difference is greatest for women working part time, who earn
just over half the rate per hour that male full-time workers earn. Part-time jobs are still more
common in the lower paid occupations.

Job sharing
Job sharing is where two people share a job that would normally be done by one person. Each
person is paid on a part-time basis but together they do a full-time job. This can be achieved by
one person working specific days, mornings or afternoons and the other person working the days,
mornings and afternoons when the other doesnt, although there may be times when the
employer wants them to work certain times together.

There are benefits for employers. The two workers can have different skills, knowledge and
experience.
the employer can be said to be getting the skills of two workers for the price of one. As with any
part-time worker, they are working fewer hours they may be fresher and more creative. When the
business is particularly busy the employer can get the two workers to work together. For
particular types of job, it doesnt matter that at less busy times neither is working. Obviously, this
does not apply to jobs like customer help, where somebody must always be available. If one
worker is ill or on holiday, part of the job still gets done. Using a job-share arrangement may
mean that workers stay with the business, whereas they might leave if they had to work full time.
As with part-time working, there is no need to spend money on training a new person.
A possible problem for employers is that money may need to be spent on providing an extra desk
or additional equipment. As when employing part-time workers, there may be extra training costs
associated with training both workers and trying to arrange training times to suit all workers may
be difficult.
The benefits for workers are much the same as with part-time working. Additionally, job sharing
can give greater enjoyment at work as problems can be shared with someone else.
However, there are some problems for employees. Managers may not want certain jobs to be
shared. Workers may not get as much job satisfaction if what was considered to be their job
now has to be shared with someone else. A further issue is that those who job share have to be
extremely organized in terms of the handover between them; it can also help if they think in a
similar way.
Flexible working hours
Flexible working hours, or flexitime as it is sometimes called, give workers some choice about
what times of day they work. They can vary them from day to day. They work the same number
of hours each week, but they can choose when to do these hours, providing it fits in with other
workers requirements and also the employers needs.
One benefit for employers is that it can enable businesses to be open for longer during the day.
This is very useful when the business has call centres and wants the phones to operate from say,
eight in the morning until ten at night.

There are a number of benefits for workers. Flexitime allows workers to organize their working
lives to suit their personal needs. Travelling to work can be easier and cheaper if it happens
outside peak times. If workers stay late to finish a job, they can take time off at a later date. If the
job requires great concentration, it can be done at quiet times of day.
There are, however, some problems for employees. It can put extra pressure on some workers if
they are required to work when other workers are not prepared to work.
Working from home
Working from home, sometimes called teleworking, involves employees spending all or some of
their working week at home, using their home as an office. More and more employees are being
allowed to work at home from time to time in order to work without interruption.

One benefit for employers is that less money has to be spent on renting or buying offices. Some
workers have commitments which make it difficult for them to leave their home, for example
having young families, looking after elderly relatives or having disabilities. When employers
allow these people to work from home it means that the company doesnt lose the services of
staff who might otherwise leave.

One problem for employers is that they must make sure that workers are on task and not wasting
time. In general, it is a case of employing strategies that are effective in an office-based situation,
such as setting and monitoring targets and being available to answer any questions and to provide
support.

Advantages to workers
There are obviously benefits for workers.
o They can manage their work and home life more easily.
o It is no longer essential for them to live close to their work.
o They save on transport costs and travelling time.
o They can work hours which suit them.
o
There are also disadvantages:
Some people find it difficult to work without having contact with other people.
They do not see their manager as regularly. This means that they are less able to impress him or
her, and this can affect career prospects.
It is not always easy to find an office space in the home.
Sometimes it is difficult to concentrate on work when distracted by what is going on at home:
O Friends or relatives may drop in for a chat, making it difficult to work.
O Young children at pre-school age demand attention.
O Pets can cause distractions, such as dogs needing to be taken for a walk.
Keeping work documents confidential and secure while travelling from work to home and vice
versa can be hard.

Compressed hours

Compressed hours working involves employees working the same number of hours but over a
shorter number of days. It usually involves working four or four and a half days in a week, or
nine days out often in a period of two weeks.

One benefit for employers is that by giving extra time off it helps to keep employees who might
otherwise leave for the same reasons as with flexitime. Because some workers work longer it
means that the company can operate longer hours. Also, absenteeism is less of a problem because
employees have more time off.

Workers benefit because they earn the same amount of money but work fewer days. They can
also have long weekends if they complete all their working hours by early Friday. A problem
for workers is that by working longer days they can get very tired and not be able to joy their
extra free time.
Ability to move from branch to branch
With many companies having centralized computer systems, it is not as important which office
workers operate from. They will still be able to access their work. This means that employers can
organize it so that they can move employees from a branch that is less busy to one that is busier
at certain times of the week.

3.5 Online services and security and privacy of data

Need to protect confidentiality of data

When we talk about the confidentiality of personal data we mean that information should only be
seen by those people who are authorized to see it. Keeping data confidential is an essential part
of information security. Encryption is the main ICT technique used to ensure the confidentiality
of data in online systems. Ordinary data is converted into a secret code, so anybody illegally
accessing data will not be able to understand it. They can still do malicious things like deleting
the data but they cannot gain any information from it. To read an encrypt file requires a secret
key or password that enables the person to decrypt it. Unencrypted data is called plain text
encrypted data is referred to as cipher text.

Shop security
User and payment data are encrypted when they are transferred using the Internet. You will not
need to go into much detail for the AS part of the course but you need to understand that there
are public encryption key and private encryption keys. Encryption is explained in more detail in
Chapter 7 for A2 students. Individuals have a public key which they can tell everybody about.
They also have a private key which only they know. Provided you know an individuals public
key, you can use it to encrypt a message to send to them. Only that individual, however, is able to
decrypt it using their private key. Public-key systems are used to encrypt information that is
transmitted using the Internet for payment purposes.

Online banking

Many banking systems do not consider that the use of a single password provides sufficient
protection against the interception of data by hackers. Online banking uses secure sites and all
data transferred using the internet including the password, are encrypted. This makes it very
difficult for an unauthorized person to get any meaningful information after it has been sent.
However, encryption alone does not prevent hackers or fraudsters from gaining access to your
PC at home. Using key-logging software, they can detect the keys you are pressing on the
keyboard. There is also the slight possibility that they can discover your password or even
somebody could steal your password if you are careless enough to write it down.
Many online banking services therefore use additional methods of security.

One method is to use what are called transaction numbers (TANs). These are basically passwords
which are used once only. They are sent to you by your bank either through the post or a more
recent development is you request one on the Internet and the bank sends the TAN to your
mobile phone. It is only valid for a few minutes, thereby reducing the time available for a hacker
to intercept and use it.

Another method is to ask the user to type in only part of their password, such as the second, third
and fifth characters. Every time the user logs in they are asked for a different combination. This
way, a hacker can only get to know part of the password, which is not very useful to them.
What is the point of knowing the second, third and fifth characters if when they log on the
system asks them for the first, fourth and sixth?

A third method
Involves providing customers with a handheld chip and PIN device which is capable of
generating single-use passwords (this is called two-factor authentication or 2FA).

To access their account a customer would need their debit card, its PIN number,
their online security number and the chip and PIN device itself. Once the customer has inserted
their card into the device and entered their PIN number, they will be issued with an Eight-digit
code. This is the password they use to log in to pay somebody and it changes each time the
information is entered.

Online shopping
The same encryption techniques are used for data transmission as are used by banks.
In addition most sites use the https secure prefix to their URL rather than the more common
'http'
The bonus is, however, on the customer to ensure that they are using a reputable, secure online
store. In addition, to show that data is being transmitted using either the secure socket layer
(SSL) or transport layer security (TLS) protocols, there should be a padlock at the bottom of the
site. Both are protocols used in the encryption of messages between a client computer and a
server, although TLS is now taking over from SSL. You will not need to know about these in
detail for your final AS exam, just that they exist. They are explained more in Chapter 7 for A2
students.
It is important that the customer checks the contact details and details of the company to make
sure of its reliability. It is equally important that the store has a privacy policy and that the
customer reads this. If there isnt one or it is too difficult to understand, the customer should go
to another store. It is important to know what exactly they are agreeing to buy. Both the
description and what to do in the event that they are not satisfied should be clear. Most
transactions, if paid for by credit card, are protected by bank legislation so they should always
use a credit card. Customers should always print out details of the transaction in case of future
disputes:
Data protection legislation

Data protection acts exist in most countries. These set down rules for keeping data private as well
as confidential. Most countries have similar sets of data protection rules. As an example, here is a
summary of what the UK Data Protection Act states:
Personal data shall be processed fairly and lawfully.
Personal data shall be obtained only for a lawful purpose (or purposes), and shall not be used
for anything other than that purpose (or purposes).
Personal data shall be adequate, relevant and not excessive in relation to the purpose (or
purposes) for which they are processed.
Personal data shall be accurate and, where necessary, kept up to date.
Personal data processed for any purpose (or purposes) shall not be kept for longer than is
necessary for that purpose (or purposes).

Personal data shall be processed in accordance with the rights of data subjects.
Appropriate measures shall be taken against unauthorized or unlawful processing of personal
data and against accidental loss or destruction of, or damage to, personal data.
Personal data shall not be transferred to a country outside the European Economic Area unless
that country guarantees the same level of data protection.

The Act also allows you to find out, on payment of a nominal fee, what information is being held
about you by an organization.
Punishment for breaking any of the above principles is a very large fine.

Social and ethical implications of access to personal information

A number of employees in large organizations have to look at the personal data of other
individuals. They are trusted to keep the nature of their work confidential and not share any of
this data with people outside (and some inside) that organization. It is important that they are
aware of their duties in this work.
Duty of confidence
Employees who handle confidential information about individuals have a personal duty of
confidence both to the individuals and to their employer. This means that they must not tell
anybody or use the information for any reason except with the permission of the person who told
them, Should they attempt to do so the person who told them can take out a legal injunction
preventing them.
Examples of confidential information are trade secrets, business secrets, personal information
such as diaries and photographs and professional information.
In order for a duty of confidence to exist, the employee must be asked to treat the information as
confidential or it must be obvious to them that the information is given in confidence. The best
way to do that is for the employer to ask the employee to sign a confidentiality agreement.
Duty of fidelity
A duty of confidence is often confused with an employees duty of fidelity. An employee must be
loyal to their employer for so long as they work for them. That means that they must not tell any
rival companies about their work.

Responsibility for passing on information

Organisations are accountable for their decisions to pass on information. When they pass on
information about an individual they have to make sure that only the least amount of information
that could identify the individual should be used. Online services, particularly online banking
and shopping, allow organizations to have access to the most private of data such as names,
addresses, phone numbers, financial situation etc. It is essential that such information is not
passed on from organisation to organisation without authorization from the individual.

Anonymised information
Information about individuals without mentioning the person by name is called anonymised
information. Where anonymised information would be sufficient for a particular purpose,
organizations should always omit personal details wherever possible.

Aggregated information
Aggregated information is where personal details of individuals are combined to provide
information without naming those individuals. However, this may not always safeguard details
adequately. An example could be a hospital which statistically analyses all of its patients
(without using their names) who suffer from a particular illness or disease and produces
information about those patients, for example the number of patients who suffer from a specific
disease whose income is below a certain level. As this covers all the patients, no one patient is
identifiable. The problem is that there may be only one patient suffering from a particular disease
and so it is obvious who the hospital is referring to.

Breaches of confidence
As was mentioned above, organizations should include a duty of confidence clause in
employment contracts. Individuals who feel that their confidential data has been made public
(i.e. their confidentiality has been breached) should complain to the organisation.

Need for security

Under the Data Protection Act, security measures must be in place within an organisation to
protect computerized information.
As has been explained earlier in this section, under Online banking many methods are used and
are being developed to ensure security of personal information.
Some customers do not use online banking because they think that they could be open to
somebody defrauding them.

Identity theft
Credit card fraud and identity theft occur more often with conventional banking than with online
banking. Many people today are concerned about identity theft, which usually occurs in the form
of stolen credit card data.
When a purchase is made in some restaurants, shops or petrol stations some customers let the
waiter or cashier take the credit card out of their sight. The waiter might use the excuse that the
card reader is in the back of the building. The card is then skimmed on a special reader and all
the details are copied from the card. Sometimes, to try and avoid suspicion, the skimming
machine can be just below the cash till and the customer hardly notices that it has been skimmed
as well as swiped for the transaction. With all these details, numerous Internet transactions can
be carried out.
A rarer method, but it still happens, is when retail outlets databases are hacked into and all
customer data is copied for illegal use.
Call-line centres for banks have had employees copy data to pass on to criminals, who then use
the data to make illegal transactions.
Online transactions tend to be more secure. However, even though the data is encrypted, at some
point it has to be decrypted in order to process it. At this point, it becomes vulnerable to theft.
Phishing
Phishing is when details of credit cards, debit cards or bank accounts are given out by customers
to people they think are representatives of banking organizations. It can be as simple as an e-mail
that might ask for a customers details and appear to be from the bank they normally use. The e-
mail may say that the bank needs the information so that its systems can be updated or that it is
checking that it has the correct e-mail address. It asks the customer for their password, card or
account number and other security details. Most banks overcome this by making it clear that they
would never ask for the full password, just a number of characters from it (usually three).
Phishes often include a website address for the customer to go to which, looks just like the actual
banks website. It is actually a fake website they have set up purely to get customer details.

Pharming is a variation of phishing. The fraudster can redirect a genuine websites traffic to
their own website. The customer thinks they are dealing with their bank (the site is the normal
site they would log on to) but are actually sending their details to the fraudster website.
Spyware
Spyware is software which customers unwillingly download. This usually happens when
computer users download certain software. They do not realize that the fraudster or hacker has
attached spy-ware to it to gather personal details of the user, often by means of detecting key
presses on the keyboard when the user logs on to their bank account or goes online shopping.

Online auction or shopping fraud

This is when somebody uses a genuine site such as an auction site, puts expensive items up for
sale and either just does not deliver them or sends cheap imitations in their place. Some people
set up complete online shopping sites which seem to be genuine, but then they take the money
arid never deliver the goods.

3.6 Online services and health and safety Health

Increase in repetitive strain injury
It is felt that the increased use of online services may have an effect on the degree of repetitive
strain injury (RSI) that computer users will experience. This is more likely to be the case with
telephone operators at call centres than with other users.

The two most common RST ailments experienced by computer users are:
Carpal tunnel syndrome, the name given to a condition causing pain in the forearm and wrist.
The number of cases has increased since the 1980s, due to the increased use of computers in
offices. It affects women more than men.
Cubital tunnel syndrome, a similar condition which affects the elbow. It is sometimes referred
to as cell phone elbow, caused by keeping the elbow bent in order to make and take calls on a
mobile phone.
RSI is often caused by computer users having their arms and wrists at awkward angles when
working at the computer. This picture illustrates the ideal arm and hand positions for computer
work.
RSI is often caused by computer users having their arms and wrists at awkward angles when
working at the computer.
 This picture illustrates the ideal arm and hand positions for computer work.

Vision and posture problems:

Upper back and neck problems are often caused by bad positioning of a computer screen or bad
lighting. Typical symptoms include neck pain, shoulder pain, weakness of the arm and hand muscles
and headaches. Lower back pain can be caused by prolonged sitting or standing. Visual problems
such as eye irritation and eye strain are also quite common among long-term computer users. This
can be caused by glare from the screen, poor positioning of the screen and poor lighting. Most call
centres are designed to reduce these and times should be set aside for the operators to be able to get
up and walk around.

To prevent these problems,

companies and workers must follow health and safety guidance regarding the height, position and
distance of monitors and keyboards from operators when working. If operators are going to be seated
for extended periods, they must be provided with good-quality seating that supports the back.
Seating should be height adjustable, so that monitors and keyboards are correctly positioned and
operators do not have to look up or down at the monitor for prolonged periods. This picture
illustrates the ideal sitting position for computer work.
Safety

Many safety problems are caused by the use of a large number of computers close to each other, as is
particularly the case at online centres. This leads to a need for increased safety measures, against
electrocution, fire and other dangers.

Electrocution
This is a rare occurrence but can occur wherever there are lots of computers, electrical cables and
sockets.
Safety measures include the following:
Electrical sockets should not be overloaded. The use of automatic fuse trips means that when there
is an overload the circuit trips out.
All electrical installations must be carried out by a qualified electrician.
All equipment must be of a reliable standard and should be checked annually by qualified
electricians.
All electrical equipment must be located away from water supplies and workers must have a sound
knowledge of electrical safety.
Workers must not take drinks to tables where they are working with electrical equipment

Fire
When computers overheat or wires fray, this can lead to fire.

Safety measures include the following:

There must always be plenty of CO2 fire extinguishers.
Fire exits must be kept clear at all times and not blocked by equipment.
All electrical equipment must be located away from water supplies and operators must have a
sound knowledge of electrical safety.
Tripping hazards
When electricity or computer wires, cables or leads are left lying around, people can easily trip over
them.
Safety measures include the following:
Cabling must not trail on the floor.
Additional equipment must be situated where it will not result in trailing cables.
Danger caused by heavy equipment falling All sorts of personal injuries can be caused by computer
equipment falling off a workstation or by a workstation collapsing.
Safety measures include the following:
Benching must be sturdy enough to withstand the weight of the hardware and additional equipment
stored on it.
No equipment, no matter how small, must overhang the workstation. Even something as small as a
mouse is connected to the computer and if the computer or monitor is not stable it may topple over if
the mouse is pulled away.

Examination questions from your book page 60