design AND IMPLEMENTATION OF ANTI-FRAUD PAYMENT SYSTEM IN E-COMMERCE SECTOR
DESIGN AND IMPLEMENTATION OF ANTI-FRAUD PAYMENT SYSTEM IN E-COMMERCE SECTOR
1.1 THE BACKGROUND OF THE STUDY
Commerce is defined as the exchange of commodities and services on a wide scale. Commerce or the commercial sector is most significant in terms of an economy's health and can be considered to be the major driver of a successful economy. As a result, it is critical to ensure legitimate confidence between parties, hence reducing the likelihood of fraud.
Fraudulent behaviour damages the integrity of a society's trade and commercial operations. Inter-societal or international business would take a back seat in certain regions at times.
In Nigeria, for example, credit/debit card fraud has left a stain on the Nigerian internet markets, and if caution is not exercised, there would be much less interaction with the world community in terms of e-commerce.
Prior to the twenty-first century, traditional commerce was limited to actual contact between buyer and seller for a specific commodity or service.
This system, albeit mechanical, sluggish, and repetitive, had a high level of trust in the transaction. However, in the ICT-enabled age, most commerce may be done online and is vulnerable to fraud if such vulnerabilities are not addressed.
This concept intends to deliver an optimal business experience by combining the integrity of the traditional physical method with the ease of the information era.
E-commerce as an idea strives for the best possible transaction outcome. Mobile commerce, electronic funds transfer (which this project seeks to safeguard), supply chain management, internet marketing, online transaction processing, electronic data interchange, inventory management systems, and automated data gathering systems are all used in e-commerce.
The concept of e-commerce or online shopping was studied academically in the 1970s, most notably at the Massachusetts Institute of Technology.
And was used to facilitate cannabis sales between students at the University of Stanford artificial Intelligence Laboratory and computer science students at the Massachusetts Institute of Technology.
Thomson Holidays in the United Kingdom was the first to use it privately in 1981, connecting 66 travel agencies throughout England.
Papameletiou (1999) observed in his work “Study on Electronic Payment Systems for the Committee on Economic and Monetary Affairs and Industrial Policy of the European Parliament”; a direct relationship between the development of e-payment systems and the expansion of e-commerce.
As payment gateways such as Stripe, PayPal, and Paystack gained traction, the e-commerce sector that we see today, including Amazon, eBay, Jumia, and Konga, to mention a few, grew in massive proportions.
1.2 STATEMENT OF THE problem
Fraud is a huge issue and the most prevalent white-collar crime in today's society. This problem has been exacerbated drastically by the World Wide Web's burgeoning global community. Specifically, such lingering repercussions of electronic fraud that must be addressed include:
Charge backs are amounts that must be repaid to the cardholder by the merchant following a fraudulent transaction.
Profit loss for the merchant because the good will be'sold' to the fraudster.
According to Dani and Krishna (2001), “one of the main bottlenecks in the growth of e-commerce is the lack of a suitable payment instrument and corresponding Electronic Payment System.”
1.3 MOTIVATION OF THE STUDY
This study was inspired by the fact that the world in general is increasingly gravitating towards technological applications that provide convenience.
This convenience would necessitate a precisely planned system in order to maintain a high degree of confidence between consumers and sellers. Another motivation is to eliminate, or at the very least lessen, occurrences of payment system fraud.
1.4 AIMS AND OBJECTIVES OF THE STUDY
The goal of designing and implementing an anti-fraud payment system is to:
create a buyer/seller registration system that includes the ability to verify and authenticate users.
Implement a method to decrease the possibility of fraud.
Constantly improve the verification and authentication capabilities.
1.5 OUTLINE OF METHODOLOGY
This idea and project were implemented using the server-side programming language PHP and the MySQL database querying language. This will also be hosted on an online domain as a web application.
1.6 SCOPE OF THE STUDY
The research looks at internet payments both in Nigeria and around the world. It focuses on the e-commerce industry in particular. We also look at difficulties and solutions to them. For this project, we would investigate and test it on a smaller scale before increasing the scope.
1.7 SIGNIFICANCE OF THE STUDY
The study is very important in terms of researching, analysing, and proposing more effective and trustworthy methods of implementing e-commerce firms.
It also strengthens the case for the deployment of an e-payment system across sectors of the economy and society as a whole.
1.8 DEFINITION OF OPERATIONAL TERM
E-COMMERCE: E-commerce (Electronic commerce) is the purchasing and selling of goods or services through the internet, as well as the movement of money and data to complete these transactions.
FRAUD: Wrongful or unlawful deception aimed to acquire financial or personal gain.
E-PAYMENT: E-payment (electronic payment) is simply paying for goods or services through the internet. It encompasses all financial transactions conducted using electronic devices such as computers, cellphones, or tablets.
E-payments can be made using a variety of techniques, such as credit or debit card payments or bank transfers.
EDI (Electronic Data transfer) is the electronic transfer of corporate information using a standardised format; a method that allows one firm to communicate information to another company electronically rather than on paper. Trading partners are business entities that perform electronic transactions.
FRAUD REPORTING: Fraud reporting is the process of identifying potentially fraudulent behaviour in a system and documenting it for further investigation and mitigation.
FRAUD MITIGATION: Simply put, fraud mitigation is the process of responding to incidents and potential instances of fraudulent behaviour with appropriate action, control, or even prevention.
1.9 ORGANISATION OF THE PROJECT'
The project is structured in such a way that Chapter One provides a quick overview of the Background of the Study of Payment Systems in E-Commerce.
In Chapter Two, we take a broad look at the various e-commerce system implementations. The third chapter looks at the System Architecture, as well as the system design and analysis.
The fourth chapter describes the project's implementation utilising the relevant programming languages and development processes.
It also includes the results of the testing. Chapter Five concludes the project work by providing a summary, findings, and recommendations for future work.