The Melody Shop: security considerations


The problem

The Internet being what it is, there is cause for concern regarding financial security when it comes to the transmission of sensitive data such as a credit card number. We won't talk about the more frightening aspects of being able to track your purchasing history when you buy with credit cards, because that's not something peculiar to the Internet. 1984 has already come and gone.

Many people feel that the risk incurred by financial transactions on the Internet is not now much greater than that experienced during a "normal" credit card transaction. In such conventional transactions there is generally at least one other person involved who will have access to secret data like your card number.

How good are the default security procedures?

Web browsers and servers do afford a minimal measure of security when exchanging some information: data can be passed, while not encrypted, not as plain text, either. It is "uuencoded". While anyone watching packet traffic on the network will not see the password in the clear, the password can be decoded easily enough by anyone who knows what to look for and catches the right packet.

This method of authentication is roughly as safe as telnet-style username and password security -- if you trust any of your data to be on any machine on the Internet, open to attempts to telnet in by anyone who wants to try, then you have no reason not to trust this method also. It doesn't matter whether your data are encrypted in passing or not if the machine where they end up is not behind a firewall, and that's another whole can of worms.

Not everyone shares this cavalier point of view. It is undeniable that placing credit card numbers on the Internet makes them available to a larger number of potential thieves and other transgressors.

The tradeoffs

Most consumers are protected by their credit card company which imposes limited or no liability for fraudulent charges, especially if the vendor cannot demonstrate delivery of goods or confirm the authenticity of the order. This is the advantage to the consumer of doing business with credit cards instead of cash, money orders or checks.

The advantage to the vendor is immediate cash for authorized transactions. Vendors have to give back the money only if the goods don't arrive or are defective (and returned, in the case of physical goods).

What does The Melody Shop do about security?

The Melody Shop uses the default security features for your Melody Shop password and your credit card numbers so that these secret items do not appear in the clear on the Internet. The Melody Shop does not keep credit card numbers on any Internet connected machine after processing. You are protected against unauthorized use of the card numbers by the credit card company and federal credit regulations limiting liability.

If you are still concerned about credit card security, leave the credit card space blank. Then, after placing your order, call The Melody Shop at your number here A real person there will take your credit card information over the phone, along with something unique with which you will identify your order.

And The Melody Shop might just give you a call to see if everything is satisfactory. The Melody Shop insists on happy customers.

Digital Solutions

Suppose we want to send card numbers over the net and feel good about it? After all, it's quite convenient. Commercial WWW servers use sophisticated techniques to provide both encryption and authentication. The vendor is assured that your order is undeniable, you are assured that packet sniffers don't see your card numbers and that you are really ordering something from the ones who are selling. In financial transactions where the consumer has limited liability for fraudulent orders anyway, the advantage to such encrypted transactions is mostly to the vendor, with little impact on the consumer.

Other solutions

Another option is for you to call the vendor and supply your sensitive information by voice or fax. This assumes that fax and voice transmissions are better hidden from criminals than IP packets.

The vendor can get you to supply a physical address so that delivery can be traced (in the case of physical goods) and you cannot deny that you ordered or received the goods. Similarly, you might get the vendor to supply a listed telephone number for you to call to make sure you're giving your card number to someone who's selling what you're buying. This assumes that the phone company is not in collusion with the bad guys.