E-Government in Malaysia: Its Implementation so far and Citizen’s Adoption Strategies

IMPLEMENTATION OF E-GOVERNMENT IN MALAYSIA

The status of e-government implementation in Malaysia is widely discussed as to the potential of e-government implementation towards the public and businesses. As far from the Malaysia is concerned, the implementation of e-government was initiated by the introduction of the Multimedia Super Corridor (MSC) in 1996.

The e-government initiative launched the country into the Information Age. It will improve the government operates internally as well as how it delivers services to the people of Malaysia. It seeks to improve the convenience, accessibility, and quality of interaction with citizens and businesses. Simultaneously, it will improve information flow and processes within the government, improve the speed and quality of the policy development, and improve coordination and enforcement. This would enable the government to be more responsive to the needs of its citizens.

In order to realize the e-government adoption in Malaysia, MAMPU has introduced several documents to streamline the e-government implementation. One of the documents, Blueprint for Implementation contains explanations on concept, vision, objectives and roadmap of e-government implementation.

E-government is one of the seven flagship applications introduced in MSC. Under the e-government flagship, seven main projects were identified to be the core of the e-government application.

1) Generic Office Environment (GOE)
-- The aim of GOE is to introduce a fully integrated, distributed and scalable office environment that leverages use of the multimedia information technology.This will enable efficient communication, allowing collaboration across all workers, and ensuring right information reaching the right people in the timely manner. The GOE projects consists of modules namely Enterprise-wide Information Management System (EIMS), Enterprise-wide Communication Management System, and Enterprise-Wide Collaboration Management System (“Pilot Project”). The EIMS provide a universal interface for the users to mange, find, retrieve and compose the information that they need in their day to day operations. Via the Communication and Collaboration Management Systems, users can communicate and collaborate in a group to perform work function. All three modules work together in an integrated fashion to provide the technical transparency for the users.

2) Electronic Procurement (eP)
-- The aim is to re-engineer, automate, and transform current procurement system. The project would cover central contract, tender, and direct purchase. Besides that, the use of eP will increase transparency, save time and money while encourage suppliers to go electronic and join the K- Economy.

3) Human Resource Management Information System (HRMIS)
-- The introduction of HRMIS as an e-government project will provide single interface for government employees to perform human resource functions effectively and efficiency. Furthermore, it will help to standardize all human resource processes for federal, state, statutory body, and local authority services. The objective of HRMIS is not just for record keeping but also provide transactional functions such as leave application, loan processing, competency management, recruitment, and selection of employee.

4) Project Monitoring System (PMS)
-- This projects will create a mechanism to monitor project implementation throughout various government agencies and statutory bodies. PMS also provide a platform to exchange ideas and to demonstrate best practices in information management and communication services. The PMS is designed to provide a mechanism for monitoring the implementation of government projrct ("Pilot Projects", n.d.). The service also provides a platform for exchanging ideas and demonstrating best practices models in information management and communication services.

5) Electronic Services Delivery (eServices)
-- This project is a pilot project that allows citizens of Malaysia to engage in transaction with government and utilities payment such as telephone and electricity bill, police summons, Road and Transport Department (RTD) services, etc. The eService is accessed via multi channel service delivery such as the Internet and kiosk machines.

6) Electronic Labor Exchange (ELX)
-- This project is to improve the mobilization of human resources and optimize work force utilization through systematic matching of job seekers to job vacancies. As such, this would enable the Ministry of Human Resources (MOHR) to be one- stop centre for labour market information that will be accessible to the public.

7) E- Syariah
-- This project is to improve the quality of service in Syariah courts. This will eventually enhance the Islamic Affairs Department’s effectiveness through better monitoring and co-ordination of its agencies and improving the management of its 102 Syariah courts. The E- Syariah application consists of Syariah Court Case Management System , Office Automatic System, E- Syariah Portal, Syarie Lawyers Registration System and Library Management System.

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CITIZEN'S ADOPTION OF E-GOVERNMENT

Citizens expect and demand governmental services with a high degree of quality, quantity, and availability in a 24-hour, seven-days-a-week, and year-round fashion. Success in delivering electronic services depends upon the capability and self-confidence of citizens in performing e-transactions, as well as their trust and confidence in the protection of their personal data within an open and accountable government.

Influence citizens’ adoption of e-Services is very important, because the success and acceptance of e-Government initiatives are dependent on citizens’ willingness to adopt and utilize these services.

Perceived ease of use, compatibility, and trustworthiness are significant predictors of citizens’ intention to use e-Services and that perceived reactive advantage, perceived image, perceived compatibility, perceived usefulness, and relative advantage are significant elements of e-Government adoption.

Most users used E-Government websites in their workplace and the most frequently used topic was taxation.Information quality and system quality are significant factors that influence the adoption of E-Government websites. Accuracy, relevancy, and completeness were more significant than timeliness and precision. Efficiency was the most significant factor.

Electronic currency

what is bitpass???

bitPass is a micro payment service that facilitates online content access transactions by integrating the processes involved in buying and selling content, and making it practical to charge very small amounts of money.

In the BitPass system, transaction fees are paid by the content provider. For payments under $5., the charge is 15% of the cost. Micro payments are by definition very small sums, so the fee is usually just a few cents. For the content buyer, the BitPass system works similarly to a pre-paid telephone card: you sign up for the service and put money into your account using a credit card or pay pal , which gives you credit towards the purchase of content. When the user agrees to pay the cost of access, their account is charged automatically rather than through a link to an external Web site for payment.

Although the micro payment concept has been proposed for several years, it's been a hard sell. After all, most online content has always been free, and people are naturally opposed to paying for anything they might reasonably expect to get for nothing. However, at least part of the reason that content has been free is likely that no one's found a viable way to get people to pay for it to this point.

Misunderstanding electronic payments

Swinging Wide

BitPass will fail, as FirstVirtual, Cybercoin, Millicent, Digicash, Internet Dollar, Pay2See, and many others have in the decade since Digital silk road, the paper that helped launch interest in micro payments. These systems didn't fail because of poor implementation; they failed because the trend towards freely offered content is an epochal change, to which micro payments are a pointless response.

BitPass' predecessors failed for a variety of reasons and of course "poor implementation" was among them. Efforts like the ones Shirky mentions were plagued with problems: Elaborate and intrusive sign-up forms, flaky business models, mandatory plug-ins, blood-sucking hook-ups to bank accounts, vendor start-up fees, greedy profit splits, etc. Some even claimed to offer "micro payments" while refusing to support transactions below 99¢.

bitpass died???

Bitpass, the Menlo Park start-up that gave people a way to make micro payments online, has died.

Bitpass sent out an email this afternoon to users saying it was closing Jan 26 2007. Online payments have become more competitive over recent months, since Google joined the fray with Google Checkout, and began offering its service for free.

Perhaps Google’s homepage promotion of Checkout was the last straw — making Bitpass the latest Google road-kill. Just three months ago, Bitpass’ chief executive said he was hoping to ally with google, to have Bitpass’ micro payment feature integrated into Google Checkout.

Bitpass was already showing odd signs two years ago, when the CEO disappeared and nobody ever responded to our request for information about what happened. And numerous other micropayments companies struggle or went belly up, including First Virtual, Cybercoin, Millicent, Digicash and Internet Dollar and Peppercoin is still standing.

See our recent coverage of BitPass here . BitPass has taken two rounds of funding, the latest in the fall of 2004, when it raised $11.75 million from Worldview Technology Partners, Steamboat Ventures (the venture capital arm of the Walt Disney Co.), RRE Ventures and others. Prior to that, it had raised $1.5 million from Garage Technology Ventures, Cardinal Venture Capital, Amicus Capital and Constantine Partners.

Credit Card debts: Causes and Prevention

Credit card debt is a major social problem, leading many individual into bankruptcy. To eliminate credit card debt from your own life, it is best to recognize this problem as both a social and individual problem.









Causes of Credit Card debts:


1)Credit card interest rates are high, therefore the profits can be high. Banks and other credit card issuers are after their slice of that big money. If you really think that 'they are after your money', it would be better for you to resist.

2)It is very easy to get credit cards, multiple credit cards in fact. Issuers of credit cards make it easy for you, if you have had no debt problems in the past. If they seem to take it lightly, it is understandable that their customers do too. But remember, they take the risk factors into account when setting interest rates.

3)Friends, neighbours and work colleagues will probably all have multiple credit cards, talking about them and flashing them around from time to time. That could influence the attitute of a person towards it.

4)A monthly spending plan is always essential. Without money management, you will have no idea where your money is going. People may spend hundreds of dollars unnecessarily each month and end up having to charge purchases on which they should have spent that money.

5)Many people don't understand how money works and grows, how to save and invest for a rainy day, or even why they should balance their checkbook. Financial mistakes are increasingly expensive and complicated to resolve. People should be responsible towords their money and lifestyle.











Preventions of Credit Card debts:


1)Create a budget and stick to it. A clear budget that includes all of your monthly bills, food, entertainment and miscellaneous items will prevent you from spending thoughtlessly and buying on impulse.

2)Maintain clear financial records and a regular payment schedule. Disorganization can cause you to overlook bills and overestimate how much you have to spend. Dedicate a specific time every month (just after payday is best) when you can sit down with your finances, pay your bills and determine how much you have to spend for the month ahead.

3)Only use credit when you can pay it off within a few months. Using credit cards with no plan to pay the debt is reckless, irresponsible and can get you into big trouble. The longer it takes you to pay off the debt, the more interest that debt will incur--and the more you'll end up paying.

4)Shred or tear up credit card applications that come to you in the mail. Just because you get the application doesn't mean you need or want the card. Destroying the application will prevent you from using it and protect you from potential identity thieves.

5)Maintain insurance coverage. Health and home insurance are absolute musts in order to avoid bankruptcy. Unexpected medical bills, flood damage and fire damage can lead to ruin if you aren't properly covered.

Credit Card Debts: Causes and Prevention

Credit Card Debts

Credit card is defined as any card that may be used repeatedly to purchase product and services on credit which issued by banks and financial institutions. Credit cards provide us with the added security and ease when shopping and traveling but we tend to misuse them and may lead to credit card debt. When properly used, is an extremely convenient tool.

Credit card debts result from when a client of a credit card company purchased an item or services through the card they use. Debts accumulate increase with interest and penalties for late payment had made the total amount due become larger.

Credit card debt is said to be increasing in the industries areas. Sometime the late fees,over limit fees, high annual percentage rates, and universal default overcome customer who frequently do not pay off their debts, and the customer declares bankruptcy.

Causes of Credit Debts

1.Poor Credit Management
The money spent over the income earn on each month will create the debts. Prices of goods and services going up and not the income, more and more Malaysians are forced to spend beyond their earnings. Thus, they will use credit card to purchase goods and services and unable to pay back the expenses.Clearly knowing the expenses spending at which places is very important.

2.Lack of Concern
The real culprit behind the scenario is the desire to spend money. Lack of concern that their unable to meet the credit card payment obligation. They are lack of concern about payment obligation when they are using the credit card. Using credit card is that you will never feel like you are spending the real money, so self discipline is very important to avoid the debts incurred.

3.Partly Repaying the Credit Card Debts
Many credit card users only pay the interest and the minimum amount of principal when the debt is due, thus never fully repaying the entire sum. Debt accumulates and increases via interest and a penalty when the consumer does not make the payment.

4.Gambling
Many credit card users have the habit in gambling. When they loss the money, they never stop gambling but is continues doing it, then they will use the most easy way to get the money to let them continue to gamble, so credit card is their first choice to think about it.

5. No Saving
When the peoples are no saving, they can also be sucked into credit card debt by unemployment or emergency happened. So saving is very important to avoid this happening.




Prevention of Credit

1.Budget
Create a budget and stick to it. A clear budget that includes all of your monthly bills, food, entertainment and miscellaneous items will prevent you from spending thoughtlessly and buying on impulse.

2.Saving
Save for a rainy day. Direct a portion of your paycheck directly into your savings account so you never even see that money. Aim to save enough money to be able to pay your bills for 6 months in case you lose your job or have an accident.

3.Self discipline
Self control to overspending is the best way to avoid the credit card debts. Avoid using the credit card in always especially in shopping, because using credit card is that you will never feel like you are spending the real money.

4.Clear Financial Records and Regular Payment Schedule
Disorganization can cause you to overlook bills and overestimate how much you have to spend. Dedicate a specific time every month (just after payday is best) when you can sit down with your finances, pay your bills and determine how much you have to spend for the month ahead. So maintain clear financial records and a regular payment schedule is very important.

5. Shred or Tear Up Credit Card Applications
Shred or tear up credit card applications that come to you in the mail. Just because you get the application doesn't mean you need or want the card. Destroying the application will prevent you from using it and protect you from potential identity thieves.

The Aplication of Prepaid Cash Card for Consumers

What Is Prepaid Cash Card?

Prepaid cash cards is a plastic card which provides an alternative payment method to cash when making purchases. Its functionality is more similar to writing a cheque as the funds are withdrawn directly from either the bank account, or from the remaining balance on the card.

Prepaid cash card like a portable access point to your checking account. Automated teller machines are everywhere now, and you can use prepaid cash cards at automated teller machines to withdrawal fund from your checking account in cash, deposit funds into your checking account, and you don't need to have a personal computer handy to check your balance.

If you tend to overspend or wold like to control your spending then prepaid cash cards could be a good card for you.

Consumer Benefits

• This payment option quickly and securely moves "Checking Account Like" funds without the hassles or risks involved with paper checks.
• Prepaid cash card act virtually the same as cash.
• Consumers who make prepaid cash card purchases are free of interest charges associated with credit cards.
• Consumers can conveniently and inexpensively transfer funds to friends and relatives anywhere. For example, you can buy two cards, and then send one to your mother in a different country. Every time you want t send her money, you can do card-to-card transfer or load up her card.
• Un-banked consumers can pay bills and purchases products and services on-line or through phone calls using the card.

Example of Prepaid Cash Card

Touch 'n Go

Touch n' go card is an electronic purse that can be used at all highways in Malaysia, major public transports in Klang Valley, selected parking sites and theme park.

Touch 'n go uses contactless smartcard technology. The card look like a credit card. User can continue using the card as long as it is pre-loaded with electronic cash. User can reload the card at toll plazas, train stations, Automates Teller Machines, Cash Deposit Machines, Petrol koisks and at ranging from RM 20 to RM 500.

Touch 'n go enhances the speed of paying for low value but high frequency transactions. Apart from the speed, it is also very convenient because user no longer need to prepare for small change or wait in queue at the cash lane to complete the transaction.


Nowadays, you can use Touch 'n Go to purchases fast foods from 21 outlets in the Klang Valley. The outlets are from A&W, Burger King, Dunkin' Donut, &-Eleven, Carrefour hypermarkers, Caltex conveniences stores and Cineleisure.

Maybank Visa Debit Card

Maybank, in partnership with Visa International today launched the Maybankard Visa Debit Card, Maybank's first dual purpose Bankcard which offer domestic and international access to the cardholder's bank account.

Maybank Visa Debit card is a fast and easy way to pay, and it eliminates the need to carry cheques and reduces the risk of carrying cash. You can also pay bills, transfer money or make purchases wherever VISA is accepted.

You can set your own purchase limit up to the Bank Purchases Limit which currently stand at RM 5000. Maybankard Visa Debit allow you to keep track of your expenses with online statement where you will see information such as merchant location, transaction amount and date.

You also can earn TraetsPoint whenever you pay with your Maybankard Visa Debit. Redeem an array of exciting gifts or shopping,dinning or petrol vouchers with your accumulated TreatsPoints.

No more annual fees, monthly interest rates or late charges to worry about with the Maybankard Visa Debit.

A Review on Internet Security: Impact to Fight Cyber Terrorism

First of all, what is cyber terrorism?

It is basically define as the use of information technology by terrorist groups and individuals to execute attacks against networks, computer systems and telecommunications infrastructures. Some example would be such as hacking into others computer systems, introducing viruses to vulnerable networks, web site defacing, denial-of-service attacks, or terroristic threats made via electronic communication.

Here are some of the cyber terrorism events which has happened previously...

1. In May 2007, Estonia was subjected to a mass cyber-attack in the wake of the removal of a Russian World War II war memorial from downtown Talinn. The attack was a distributed denial of service attack in which selected sites were bombarded with traffic in order to force them offline; nearly all Estonian government ministry networks as well as two major Estonian bank networks were knocked offline. Despite speculation that the attack had been coordinated by the Russian government, Estonia's defense minister admitted he had no evidence linking cyber attacks to Russian authorities.



2. In October 2007, the website of Ukrainian president Viktor Yushchenko was attacked by hackers. A radical Russian nationalist youth group, the Eurasian Youth Movement, claimed responsibility.



3. In 1999 hackers attacked NATO computers. The computers flooded them with email and hit them with a denial of service (DoS). The hackers were protesting against the NATO bombings in Kosovo. Businesses, public organizations and academic institutions were bombarded with highly politicized emails containing viruses from other European countries. No physical harm or injury had been inflicted.

The Effect of Cyber-terrorism...

Cyberterrorism can have a serious large-scale influence on significant numbers of people. It can weaken countries' economy greatly, thereby stripping it of its resources and making it more vulnerable to military attack.

Cyberterror can also affect internet-based businesses. Like brick and mortar retailers and service providers, most websites that produce income (whether by advertising, monetary exchange for goods or paid services) could stand to lose money in the event of downtime created by cyber criminals.

As internet-businesses have increasing economic importance to countries, what is normally cybercrime becomes more political and therefore "terror" related.

Steps to be taken to prevent Cyber-terrorism...

1. All accounts should have passwords and the passwords should be unusual, difficult to guess.


2. Change the network configuration when defects become know.


3. Check with venders for upgrades and patches.


4. Audit systems and check logs to help in detecting and tracing an intruder.


5. If you are ever unsure about the safety of a site, or receive suspicious email from an unkown address, don't access it. It could be trouble.

Threat of Online Security: How Safe is Our Data?

Threat of Online Security

Every unprotected computer is susceptible to have a high level of computer online security risk. The computer online security are virus, worm, and/or Trojan horse.

1) Virus
--A computer virus is a potentially damaging computer program that affects, or infects, a
computer negatively by altering the way the computer works without the user's knowledge or
permission. Once the virus infects the computer, it can spread throughout and may damage
files and system software, including the operating system.

2) Worm
--A worm is a program that copies itself repeatedly, for example in the memory or on a
network, using up resources and possibly shutting down the computer or network.

3) Trojan horse
--A Trojan horse (named after the Greek myth) is a program that hides within or looks like a
legitimate program. A certain condition or action usually triggers the Trojan horse. Unlike a
virus or worm, a Trojan horse does not replicate itself to other computers.





Safeguards against Computer Viruses, Worm and Trojan Horses

Methods that guarantee a computer or network is safe from computer viruses, worm, and Trojan horses simply do not exist. User can take several precautions, however, to protect their home and work computer from these malicious infections.

1) Never start a computer with with removable media in the drives, unless the media in uninfected.

2) Never open an e-mail attachment unless you are expecting it and it is from a trusted source. Turn off
message preview.

3) Set the macro security in programs so you can enable or disable macros. Enable macros only if the
document is from trusted source and you are expecting it.

4) Install an antivirus program on all of your computers. Obtain updates to the virus signature files on a
regular basis.

5) Check all downloaded programs for viruses, worms, or Trojan horses. These malicious- logic programs
often are placed in seemingly innocent programs, so they will affect a large number of users.

6) If the antivirus program flags an e-mail attachment as infected, deleted the attachment immediately.

7) Before using any removable media, use the antivirus scan program to check the media for infection.
incorporate this procedure even for shrink- wrapped software from major developers. Some commercial
software has been infected and distributed to unsuspecting users this way.

8) Install a personal fire program.





Safeguard against Data and Information Theft

Many companies and individuals use a variety of encryption techniques to keep data secure and private.

Encryption
Encryption is a process of converting readable data into unreadable characters to prevent unauthorized access. You treat encrypted data just like any other data. That is, you can store it or send it in an e-mail message. To read the data, the recipient must decrypt, or decipher, it into readable form.

In the encryption process, the unencrypted, readable data is called plaintext. The encrypted (scrambled) data is called ciphertext. To encrypt the data, the originator of the data coverts the plaintext into ciphertext using an encryption key. In its simplest form, an encryption key is programmed formula that the recipient of the data uses to decrypt ciphertext.

When user send an e-mail message over the Internet, they never know might intercept it, who might read it, or to whom it might be forwarded. if a message contain personal or confidential information, users can protect the message by encrypting it or signing it digitally. One of the more popular e-mail encryption programs is called Pretty Good Privacy (PGP). PGP is freeware for personal, noncommercial users. Home users can download PGP from web at no cost.

A digital signature is an encrypted code that a person, website, or company attaches to an electronic message to verify the identity of the message sender. The code usually consists of the user's name and a hash of all part of the message. A hash is a mathematical formula that generates a code from the contents of the message. Thus, the hash differs for each message. Receivers of the message and compares it with oner in the digital signature to ensure they match.

Digital signature often are used to ensure that an impostor in not participating in an internet transaction. that is, digital signature help to prevent e-mail forgery. A digital signature also can verify that the content of a message has not change.

How to safeguard our personal and financial data?

Today, people rely on computers to create, store and manage critical information. Thus, it is important that the computers and the data they store are accessible and available when needed. It also is crucial that users take measures to protect their computers and data from loss, damage, and misuse.
For example,

• businesses must ensure that information such as credit records, employee and customer data, and purchase information is secure and confidential.

• home users must ensure that their credit card number is secure when they use it to purchase goods and services from Web-based businesses.

There are some ways and suggestions to safeguard our personal and financial data....

Safeguards on personal data

• Request electronic versions of bills, statements, and checks instead of paper.

• Sign up for direct deposit of payroll to prevent paper checks from ending up in the wrong hands.

• Shred all personal and financial information such as bills, bank statements, ATM receipts, and credit card offers before you discard them.

• Keep your personal documentation (e.g. birth certificate, Social Security card, etc.) and your bank and credit card records in a secure place.

• Limit the personal information that you carry in your wallet or purse.

• Do not give your Social Security number, credit card number, or any bank account details over the phone unless you have initiated the call and know that the business that you are dealing with is reputable.

• Do not disclose bank account numbers, credit card account numbers, and other personal financial data on any Web site or online service location, unless you receive a secured authentication key from your provider.

• Do not allow mail to go uncollected. Retrieve it promptly.

• Memorize your numbers and/or passwords. Do not write your Social Security number or passwords on paper and store them in your wallet or purse.

• Avoid leaving envelopes containing your credit card payments or checks in your home mailbox for postal carrier pickup.

• Prior to discarding a computer, make sure all personal information is deleted from its hard drive.

• Take receipts at ATMs, bank counters, or unattended gasoline pumps with you.

• Use passwords on your credit cards, bank accounts, and phone cards.

• Review your credit reports annually.

• Be aware of your surroundings when entering your Personal Identification Number (PIN) at an ATM.

• Frequently monitor your account activity, such as balances and withdrawals.

Safeguards on personal and financial data

Firewalls

• companies can use firewalls to protect network resources from outsiders and to restrict employees' access to sensitive data such as payroll or personnel records.
• businesses can implement a firewall solution themselves or outsource their needs to a company specializing in providing firewall protection.

Access controls

• many companies use access controls to minimize the chance that a perpetrator intentionally may access or an employee accidentally may access confidential information on a computer.
  

Encryption

• to prevent information theft and to protect information on the internet and networks, companies and individuals use a variety of encryption techniques to keep data secure and private.

Phishing: Examples and its Prevention Methods

What is Phishing?

Phishing is an attempt to criminally and fraudulently acquire sensitive information, such as usernames, passwords and credit card details, by masquerading as a trustworthy entity in an electronic communication. PayPal, eBay and online banks are common targets.

Phishing is typically carried out by e-mail or instant massaging, and often directs users to enter details at a website, although phone contact has also been used.

Examples and Prevention Method of Phishing

Phishing emails

Phising emails usually appear to come from a well-know organization and ask for your personal information, such as credit card number, social security number, account number or password. Often times phishing attempts appear to come from sites, services and companies with which you do not even have an account.

How to Prevent?

Important: To be completely safe from phishers, do not click links in emails. If in doubt, close your browser, reopen it, and type the web address for the site you want to visit directly into the Address bar.

1. Unofficial “From” address: Look out for a sender’s e-mail address that is similar to, but not the same as a company’s official email address.
2. Urgent action requires: Be wary of emails containing phrase like “your account will be closed”, “your account has been compromised”, or “urgent action required”. The fraudster is taking advantage of your concern to trick you into providing confidential information
3. Generic greeting: Fraudster may have your email address, but they seldom have your name. Be skeptical of an email sent with a generic greeting suc as “Dear Customer” or “Dear Member”.
4. Links to a fake web site: To trick you into disclosing your user name and password, fraudsters often include a link to a fake website that look like the sign-in page of a legitimate website.
5. Legitimate link mixed with fake links: Fraudsters sometimes include authentic links in their spoof pages in order to make the spoof site appear more realistic. There are some indicators that an email might not be trustworthy.

• Spelling errors, poor grammar, or inferior graphics.
• Request for personal information
• Attachments

Sample bogus e-mail from Citibank:

Example Phishing on eBay:

Phishing Web Site

A phishing web site (spoofed) tries to steal your account password or other confidential information by tricking you into believing you’re on a legitimate web site.

Important: If you’re at all unsure about a web site, do not sign in. The safest thing to do is to close and then reopen your browser, and then type the URL into your browser’s Address bar.

How to Prevent?

1. Incorrect company name: Look out for tricks such as substituting the number “1” for the letter “I” in a web address (for example, www.paypa1.com instend of www.paypaI.com ).

2. http:// at the start of the address on Yahoo! sign-in pages: A legitimate Yahoo! sign-in page address starts with “https://”. Look for the letter “s” following “http”.

3. Missing slash: Make sure a forward slash (“/”) appears after “yahoo.com” in the Address bar.

A slash (“/”) after “yahoo.com” can help identify a Yahoo! site.

For example, "http://www.yahoo.com:login&mode=secure" is a fake web site address.

Both Internet Explorer and Mozilla Firefox web browsers have free add-ons (or “plug-ins”) that can help you detect phishing sites.

How to Spot Phishing Scams:

1. Never reply to e-mail massages that request your personal information.
2. Don’t click links in suspicious e-mail, do not copy and paste links from messages into your browser.
3. Use strong passwords and change them often.
4. Don’t send personal information in regular e-mail messages.
5. Do business only with companies you know and trust.
6. Make sure the web site uses encryption .
7. Help protect your PC. Use firewall, keep your computer updated, and use antivirus software.
8. Monitor your transactions. Review you order confirmations and credit card and bank statements.
9. Use credit cards for transactions on the internet

The failure of Pets.com

Pets.com

Pets.com was a short-lived online business (business to customer companies) that sold pet accessories and supplies direct to consumers over the World Wide Web. It launched in August of 1998 and went from an IPO on a major stock exchange to liquidation in 9 months.

After its start by Greg McLemore, the site and domain was purchased in early 1999 by leading venture capital firm Hummer Winblad and executive Julie Wainwright. Amazon.com was involved in pets.com's first round of venture funding. Pets.com would eventually buy out one online competitor Petstore.com.

Pets.com brought rival Petstore.com in June and announced plans in September to move some of its staff to the Midwest to cut costs. Despite these moves, the company's stock price has been mired below the $1.50 level for months.

Trading in Pets.com stock was temporarily halted Tuesday. When trading resumed, the price promptly plunged to 22 cents from 66 cents, a one-day decline of 67 percent. Volume topped 4 million shares.

After trading as high as $14 this year, the rock-bottom stock price values the entire company at about $6.4 million. The month before it went public, the company spent almost half that amount on 30 seconds of advertising during the Super Bowl.

Marked initially for its fierce, well-financed competiton, the online pet supply market has since been beset with consolidation and collapse. In addition to Pets.com's purchase of Petstore.com, Petopia, backed by offline pet supply giant Petco, laid off 60 percent of its staff last month.

Despite all the initial hype and funding--the four largest players each raised more than $50 million in private financing--pet supplies are not a natural e-tail market. Pet owners are less likely than others to shop online.

Additionally, the e-tail pet stores have not offered a compelling reason to shop online. Although delivering pet food and supplies directly to consumers is a convenience, that benefit is outweighed by the fact that the consumer has to wait days to receive their orders. Considering that pet food is available at just about any neighborhood grocery, few people have a reason to shop online.

After bursting to life to deliver on the promise of e-commerce, Pets.com ( Nasdaq:IPET ) closed its business the same year that it went public. To quote Tichborne again.

The failure of Pets.com and other Internet-based companies affects us all in obvious if small ways, and also in ways that we'll never know. These failures not only leave us with fewer choices as consumers, but they make it difficult for today's new online-based enterprises to raise capital. Some of today's upstarts have excellent ideas that will never see the light of day because they can't get funding.



Why did Pets.com die?

Ironically, the eager venture capital investors who swiftly funded Pets.com might have made the company's failure almost inevitable. Pets.com raised millions with nary a sustainable advantage to its name (it was not a Rule Breaker), and the venture capitalists knew that most of the money would be blown on marketing. Then, Pets.com was able to go public without a penny of value creation, let alone meaningful experience, under its belt. Next, Pets.com was allowed to fail quickly without anyone giving it a long-term chance.

When the company went public on Valentine's Day this year, management knew that very soon it would need more money given its marketing spending plan. Pets.com counted on additional funds, most likely from a secondary stock offering (they were a dime a dozen back then), and the additional funds would largely be spent on still more marketing. They arguably had to be. Even a partnership with Amazon.com ( Nasdaq:AMZN) was not bringing the millions of customers that Pets.com needed quickly enough.

Relying on additional public capital to fund the long process of becoming a sustainable business with a meaningful customer base was a big gamble at Pets.com. It lost the gamble. In a different stock market (for example, if Pets.com had gone public in 1997), this bet might have actually panned out, but it didn't.