Why do I need e-security?

The potential of the Internet

Originally developed as a network for military communication, the Internet now connects millions of computers all over the world, allowing governments, businesses and individuals to exchange a wide variety of information. Email and the World Wide Web are two of the most popular services to make use of the Internet. An estimated 500 million people are now connected to the Internet, and the number continues to rise.

There are many benefits to doing business over the Internet, including:

• Increased potential customer base;
• Reduced paperwork and administration;
• Reduced time taken to receive orders, supply goods and make and receive payments; and
• Access to a greater range of suppliers.

As well as sending emails and browsing the Internet, specialised business applications you may wish to consider include:

• E-banking (organising your accounts and paying bills);
• E-shopping (purchasing goods from a merchant's website);
• E-tailing (selling goods to shoppers from your website);
• Sending and receiving orders to and from business partners; and
• Lodging your tax return or business activity statement (BAS), or conducting other transactions with government agencies.

Why security is an issue on the Internet

Although it offers many benefits to businesses, the Net does carry risks. Because it is designed to offer easy communication between individual computers, it opens up the possibility of outsiders breaking into your computer systems and stealing valuable information such as credit card numbers. Information on how to perform such 'hacking' activity is itself widely available on the Internet, making the risk a very real one. One international gang discovered by the FBI last year had stolen more than one million credit card numbers via the Internet.

Any information transmitted over the Internet can be intercepted at any point if appropriate security precautions have not been taken. You need to take electronic security (e-security) measures for any business activities conducted online, to protect both yourself and your customers. This is particularly important where businesses are using broadband technology because of its continuous connection to the Internet.

Just as you would not open a store without taking measures to ensure it could not be burgled, you should not establish a business presence online without taking appropriate e-security measures. However, securing your business electronically is not quite as simple as installing a padlock on your front door.

Overview of this guide

Businesses need to consider whether they want basic applications such as email to be secured; how they will go about buying and selling online; how to protect computer systems from the threat of data theft; and what the legal issues surrounding e-business are. This guide will help you understand the technologies used in each of these cases, and point you to further information.

Conclusion

The rest of this report will help you choose the most appropriate e-security solutions. For a general overview of e-security, read the next section, 'How do e-security technologies work?' Subsequent sections explain how to implement specific e-security solutions for email, carrying out online transactions, and helping protect your business from cyber threats. The 'How Do I?' section at the end summarises important actions you will need to take for your business.

Additional information on e-security, including fact sheets, case studies and extra copies of this report, can be found on the NOIE website.