elecectronic Commerce Electronic commerce (e-commerce) is the practice of purchasing and selling products and services over the Internet or other electronic systems. As the Internet and its supporting technologies have expanded, so, too, has the opportunity for rapid and convenient transactions. E-commerce covers a range of different types of business-to-consumer (B2C) businesses and activities, such as consumer-based retail sites and auction or music sites, and business-to-business (B2B) platforms in which businesses exchange goods and services. E-Commerce can be defined as any traffic that passes in digital form over wires from one computer system to another, commerce or business over the Internet, corporate intranet orextranet, and direct-wire connection traffic are all forms of E-Commerce. Wire services between financial institutions and among businesses, credit card service providers, and financial institutions; faxes; telecasts; and broadcasting by means of cable service ± these are also forms of E-Commerce. Customers¶ access to their accounts for cash transfers between accounts and bill payments over the Internet is also E-Commerce. The business opportunities are boundless. With all of the business opportunities presented by the Internet come a multitude of risks. These E-Commerce risks are more complex than traditional risks. The scope of traditional community banking services is now open to regional, statewide, national and even international exposure. These services may now lend themselves to risks with multiple consequences, leading to both first-party losses and third-party liability. The consequences ofthese risks could be property damage, damage to data, and time element losses, including business interruption, contingent business interruption, service interruption and extra expense. E-commerce is an important service that is facilitated by the Internet. For many enterprises, e-commerce has expanded and globalized markets, catapulting sales and increasing revenue. For individuals, e-commerce has provided the ability for people to acquire goods and services without leaving their homes or offices. While e-commerce created many opportunities for individuals and businesses of all sizes, the emergence of e-commerce left many enterprises unprepared to deal with many of the resulting consequences
