What are the risks in Electronic payment systems?
Risks in Electronic payment systems 1)Tax Evasion:- Businesses are required by law to provide records of their financial transactions to the government so that their tax compliance can be verified. The electronic payment however can frustrate the efforts of tax collection. Unless a business discloses the various electronic payments it has made or received over the tax period, the government may not know the truth, which could cause tax evasion. 2) Fraud:- Electronic payment systems are prone to fraud. The payment is done usually after keying in a password and sometimes answering security questions. There is no way of verifying the true identity of the maker of the transaction. As long as the password and security questions are correct, the system assumes you are the right person. If this information falls into the possession of fraudsters, then they can defraud you of your money. 3)Impulse Buying:- Electronic payment systems encourage impulse buying, espe...