E-commerce is growing at an exceptional rate as more
organizations are offering their goods and services on-line
every day. Importantly, this growth is being matched by the
number of people gaining access to the Internet in a variety of
ways. E-commerce offers opportunities as well as threats.
Information is crucial for any organization especially in the emarket. A key negative perception centres on the security
involved in internet practice and electronics payments systems.
The lack of an effective and trusted payment system that can be
used in combination with on-line shopping has been limiting
factor in the growth of internet sales. Consumers are hesitant to
provide personal information, including credit card details,
over the internet because of high perception of risk and
concerns with privacy. Negative perceptions are then
compounded and reinforced by massive media exposure of
Internet security incidents. From a lack of positive experiences
and negative perceptions, many consumers still lack the
necessary trust in on-line merchants and Internet security
procedures and continue to use the web to simply surf.
Establishment of Information Security System can minimize the
threats and risks. The paper provides an overview of electronic
commerce and the impact of risk on on-line shopping
environment. Due to the growth and potential of on-line
shopping and the lack of academic based research on internetrelated consumer behaviour, there is a tremendous need for
independent, academic investigation into the behaviour and
perceptions of on-line consumers. The present study collected
data on the perceptions of risk in relation to information
security from a sample size of 624, which include both online
and traditional shoppers. The data were then analyzed in order
to investigate the current trends of consumer behaviour when
making transactions in e-commerce environment.