Electronic currency also commonly known as e-currency, e-money, electronic cash, digital money, digital cash or digital currency. It is the money screamed across the wires, its provenance fading in a maze of electronic transfers, which shifted it, hid it, broke it up into manageable wags which would be withdrawn and redeposited elsewhere, obliterating the trail. The example of electronic currency is the Electronics Funds Transfer (EFT) and direct deposit.
Benefits of E-currency
There are several of benefits of using e-currency service on the internet like e-gold and Paypal. The e-currency can be used on the internet as the same way as people use cash in normal life transaction. E-currency is use on related commercial applications such as shopping over internet or maybe other investment over internet. Besides, e-currency is the other option of payment method for consumer to use other than using only credit card and credit card that might left one with whole life of debts. This service do provides those users a quick, simple and safe way for shopping instead of showing their credit card information to merchant who they do not know.
Moreover, it is easy for trading occur over internet between buyers and sellers to use this e-currency service. They just have to click on the confirm button and the deal is done. None of the payment methods in the world right now can provide this kind of efficiency capability.
For your information, the e-currency has two major types in the world. The major different is their backed base. One is backed by precious metal such as e-gold is backed by gold. Another type pf e-currency is backed by hard currency like Paypal. Both of them are same name as E-currency.
Cons of E-currency
But on the other hand, they are some cons about having different type of currency over the internet. The e-currency backed by hard currency, Paypal, somehow been restricted in some regional area which is defined by the currency they choose to be backed. The major reason is the floating character of exchange rate between the hard currency and the local currency often used by the internet users. For instances, an internet users who lives in Japan may lose money when processing the currency exchange from USD (United States Dollar) to JPY (Japanese Yen) if he does not watch out the international economics careful enough.
In the coming future, the using of e-currency will be the trend in the coming future like credit card application before.
Its purpose of creation is to address the limitations created by cash, cheques and credit cards. It uses mobile phone to make payments, allowing registered users to pay for goods and services at 24/7 and no local limitation by just using only a mobile phone via SMS (Short Messaging Service). While on the other hand, there are 1.3 billion mobile subscriptions worldwide. Mobile or SIM card used by mobile phone can act as the security token for keys, data, and algorithms.
While, the creation of this service certainly benefits shoppers to buy product online and pay the merchant using their own mobile phone without traveling or being physically present at the store. Mobile payment is cost effective as one can take online orders without the need for disclose any credit cards information. In addition, mobile payment will encourage more consumers to shop online. And of course, this will greatly be a boon to the e-commerce industry in Malaysia. It will surely encourage more merchants to adopt on brick and click channel to sell more on their goods or services.
The consumer’s adoption strategies on the mobile payment can be those rewards provided to customers. For example, Hotlink Malaysia provide Hotlink rewards like reward points, double birthdays, privileges and etc to registered user who use their mobile service.
Besides, mobile money secure the online shopper shop without discloses their credit card information online. Well, users can also be educated on how to use mobile payment on paying phone bill, utilities bill or downloading ring tone or mobile phone wallpaper.
According to Wikipedia, credit card is a part of system of payments named after the small plastic card issue to users of the system. It’s a card with a small chip on it and entitles cardholders to use it to make purchase at merchants accepting that card. Credit card holder need not pay all the balance which they had used at the end of each month. What they need to do is only pay a defined minimum proportion of the bill by the due date, or maybe a higher amount to be paid. There are interests on those not fully paid credit card bills.
It is easy to spend extra money without paying much back to the credit card company, who is why many people, goes to credit card service and leave themselves with debts. Debt accumulates and increases via interest and penalties. When a consumer has been late on a payment, it is possible that other creditors, even creditors the consumer was not late in paying, may increase the interest rates the consumer is paying. This practice is called universal default. Additional on high annual percentage rates (APRs), consumers declare bankruptcy.
There is NO positive side on credit card use. Credit card debt is the major problem is America. Well, back to few months ago with the rise of universal economic issue, which nearly causes Malaysia repeating the economic crisis on 1997/98. That economic issue does brought a huge effect to whole world economic, including Malaysia. The major causes of the economic this time was due to the serious credit card debt in America. Fortunately it only affect partially on Malaysia’s economic.
Causes of Credit Card Debts
Credit card can be the start of a years-long-nightmare and unbelievable stress if abused. There are many causes to the constantly increasing credit card debt. It can be list down as follow.
a) Less income, more expenses
The situation of losing their own job or facing reduction of their salaries, on the same time the monthly expenses still goes on to survive. This leads to the rise of debt. The family or the man is forced to use their credit card for groceries, utilities and etc.
c) Poor Money Management
Poor money management is one of the top reasons why there are mountains of credit card debtors. They did not keep track on which item that are sure and useful to buy but keep spending a lot on useless, yet they do not realize it. While the money is going towards on those expenses through credit card, they still have to be charging on interest and service charge every month. While no saving or just save a little sum of money inside bank account also under poor money management.
Sometimes, they are also people who having poor money management are financial ignorance. They do not care how much are they suppose to spend with or save some for any happenings that might incur in future. For example, financial crisis that might be happen all in a sudden.
d) Underemployment
If you are underemployed meaning you are not getting enough working hours at your job, not getting enough living fees to spend over your lifestyle. This means, you have to cut down on that lifestyle to match on your current income. Most of them are unable to do so. Yet, they spend much; play much but less salaries and fewer saving.
e) Big medical expenses
On the other hand, this reason might be an unavoidable reason to those people who gets sick. No one wish to get ill. It might cause huge expenses because nowadays medical expenses are very expensive to spend. All most every doctors and hospital accept credit cards, so they use credit card in advance to pay for the huge expenses of medical fees, and intend to pay it back in the future. Since not everyone are affording to pay such big amount of medical fees on the scene. It is too huge amount and it causes heavy debt.
f) Divorce
Divorce, fees for the divorce attorney, division of assets between you and your spouse, proceed given to children and etc also leads people to rack up a huge debt. Divorce might force them to quit working and leads to reduction of income or their salaries they having unable to support such a huge debt once in a short time. In short, this reason causes another debt problem again.
Prevention of Credit Card Debts
But as with many things in life, when it comes to credit card debt, prevention really is better than cure.
a)Manage your finance
First of all, one has to determining on their monthly income and needed expenses. To prevent from debt, one must know how to control on which are to spend and which are not. Of course, having a proper amount of savings inside ones own saving account to prevent on any kind of incident happening that might made one to use that money to solve problem temporary rather than rack on credit card debts. A well plan saving plans is crucial when facing money problem. Moreover, people are advice to use credit card as cash, not as credit card.
b)Debit card
One of the best practice to prevent from rack on heavy credit card debts is stop using credit card, but go to have a direct setup on debit card that acquire one to payback the full amount each month. Or in other option, one may shop themselves with the right card only, convenience of using it in emergencies. Know the fine point of the certain credit card you own. Knowing the kind of interest rate might be charged. If you’re not up to date on your interest rate, you might end up paying more in interest than you have to. Do not over use it but use wisely.
c)Pay back full balance
Debtors are requiring paying back full balance at the end of each month. Pay it on time if you do not want to have any kinds of extra charge. Never make late payment including car or house payment. Prevent yourself from debt!
d)Early education
The best method of prevention is to teach our youngest generation all about money before they even qualify for a credit card. The earlier children learn how to manage finances the less likely they will be to fall into credit card and debt problems as an adult.
Third party is known as certification body or certification association (CA) as a body given the license to operate as a trusted third party in the issuance of digital certificates. It also can known as an organization to undergo auditing processes by a respected, independent and competent. The most famous application of 3rd party certification program in Malaysia is provided by the MSC Trustgate.com Sdn Bhd. This company is a licensed CA in Malaysia which incorporated in 1999, operate out of the Multimedia Super Corridor under the Digital Signature Act 1997 (DSA) in Malaysia. It offers complete security solutions for individuals, organizations, government, and e-commerce service providers by digital certificates, encryption and decryption. Their vision is to enable organizations to conduct their business securely over the internet, as much as what they have been enjoying in the physical world.
Why is the 3rd party certification needed? The reason is there are threats of internet security spreading over the net nowadays. For example, with the increase of phishing on the internet; customers want to make sure that whether they are dealing business with a trusted party. They are afraid of their personal information such as ID number, passwords, credit card numbers and so on, will be sent to those companies which do not exist in this real world. Thus, the certification from 3rd party is needed to ensure their information traveled over the Internet reaches the intended recipients and is safe.
Examples of application of third party certification programme in Malaysia :
Secured Socket Layer(SSL) A protocol original developed by Netscape in 1996 as a way of ensuring the security of e-commerce transactions, which was for transmitting private documents securely through internet (world wide web) is secure http(S-HTTP) GlobalServer ID (GSID) – strongest encryption commercially available for secure communications via Server Gated Cryptography (SGC) technology. GSID authenticates websites and enables 128- or 256-bit encryption to ensure communications and transactions between the site and visitors. Secure Server ID – protect the transfer of sensitive data on the website, intranets, and extranets using a minimum of 40-bit and up to 256-bit encryption. This server ID includes VeriSign Secured Seal. VeriSign, inc. is the trusted provider of internet infrastructure services for the networked world. The SSL, identity and authentication, and Domain Name Services allow companies and consumers all over the world to engage in trusted communications and commerce.
CryptoSuite It allow to secure files and documents with a single-click of the mouse button. This utility uses digital certificate to encrypt the file so that only the intended recipient with public key can decrypt it.
MyTrust for Mobile Signature It can turns a SIM card into mobile digital identity for secure mobile banking and other financial services. Mobile digital signature provides non-repudiation on transactions under the Digital Signature Art, 1997.
MyKad PKI(MyKey) Our country, Malaysia, has put it in place a smart national identity card (“MyKad”) for every citizen. MyKad with PKI capability allows the holder to conduct online transaction with government agencies and private sectors.
Phishing is the criminally fraudulent process of attempting to acquire sensitive information such as usernames, passwords and credit card details by masquerading as a trustworthy entity in an electronic communication Phishing is typically carried out by e-mail or instant messaging, and it often directs users to enter details at a fake website whose look and feel are almost identical to the legitimate one.A phishing technique was described in detail in 1987, in a paper and presentation delivered to the International HP Users Group, Interex.The first recorded mention of the term "phishing" is on the alt.online-service.America-online Usenet newsgroup on January 2, 1996.
An example of a phishing e-mail, disguised as an official e-mail from a (fictional) bank. The sender is attempting to trick the recipient into revealing confidential information by "confirming" it at the phisher's website. Note the misspelling of the words received and discrepancy. Such mistakes are common in most phishing emails. Also note that although the URL of the bank's webpage appears to be true, it actually links to a phisher's webpage.
There are several ways to Prevent phishing attacks:
First,do not use the links in an email, instant message, or chat to get to any web page if you suspect the message might not be authentic or you don't know the sender or user's handle. We can call the company on the telephone, or log into the website directly by typing in the Web adress in your browser .
Second,Avoid filling out forms in email messages that ask for personal financial information.We should only communicate information such as credit card numbers or account information via a secure website or the telephone.
Next,we shouldalways ensure that we are using a secure website when submitting credit card or other sensitive information via our Web browser.It is because phishers are now able to 'spoof,' or forge BOTH the "https://" that we normally see when we're on a secure Web server AND a legitimate-looking address. We may even see both in the link of a scam email. Again, make it a habit to enter the address of any banking, shopping, auction, or financial transaction website yourself and not depend on displayed links.
Fourth, we can installing a Web browser tool bar to help protect us from known fraudulent websites. These toolbars match where we are going with lists of known phisher Web sites and will alert us. For instead,now has the newer version of Internet Explorer version 7 includes this tool bar as does FireFox version 2 that we can install it to protect us.
Fifth way is regularly check our bank, credit and debit card satements to ensure that all transactions are legitimate.If anything is suspicious or you don't recognize the transaction, contact your bank and all card issuers.
Next method is always report "phishing" or “spoofed” e-mails to the following groups, such as reportphishing@antiphishing.org ,Federal Trade Commission at spam@uce.gov , "abuse" email address at the company that is being spoofed, and notify The Internet Crime Complaint Center of the FBI by filing a complaint on their website: www.ic3.gov/
Besides that,we also can use a social responses to prevent phishing attacks, which is to train people to recognize phishing attempts, and to deal with them.Education can be effective, especially where training provides direct feedback.For example, one newer phishing tactic, which uses phishing e-mails targeted at a specific company, known as spear phishing, has been harnessed to train individuals at various locations.
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