44) Next generation firewalls provide all of the following except: A) an application-centric approach to firewall control. B) the ability to identify applications regardless of the port, protocol, or security evasion tools used. C) the ability to automatically update applications with security patches. D) the ability to identify users regardless of the device or IP address. Answer: C 45) Asymmetric key cryptography is also known as: A) public key cryptography. B) secret key cryptography. C) PGP. D) PKI. Answer: A 46) All the following statements about symmetric key cryptography are true except: A) in symmetric key cryptography, both the sender and the receiver use the same key to encrypt and decrypt a message. B) the Data Encryption Standard is a symmetric key encryption system. C) symmetric key cryptography is computationally slower. D) symmetric key cryptography is a key element in digital envelopes. Answer: C 47) The Data Encryption Standard uses a(n) ________-bit key. A) 8 B) 56 C) 256 D) 512 Answer: B 48) All of the following statements about public key cryptography are true except: A) public key cryptography uses two mathematically related digital keys. B) public key cryptography ensures authentication of the sender. C) public key cryptography does not ensure message integrity. D) public key cryptography is based on the idea of irreversible mathematical functions. Answer: B 49) All of the following are features of WPA3 except: A) it implements a more robust key exchange protocol. B) it enables the creation of a VPN. C) it provides a more secure way to connect IoT devices. D) it features expanded encryption for public networks. Answer: B 50) All of the following statements about PKI are true except: A) the term PKI refers to the certification authorities and digital certificate procedures that are accepted by all parties. B) PKI is not effective against insiders who have a legitimate access to corporate systems including customer information. C) PKI guarantees that the verifying computer of the merchant is secure. D) the acronym PKI stands for public key infrastructure. Answer: C 51) A digital certificate contains all of the following except the: A) subject's private key. B) subject's public key. C) digital signature of the certification authority. D) digital certificate serial number. Answer: A 52) Which of the following dimensions of e-commerce security is not provided for by encryption? A) confidentiality B) availability C) message integrity D) nonrepudiation Answer: B 53) All of the following are methods of securing channels of communication except: A) SSL/TLS. B) digital certificates. C) VPN. D) FTP. Answer: D 54) A ________ is hardware or software that acts as a filter to prevent unwanted packets from entering a network. A) firewall B) virtual private network C) proxy server D) PPTP Answer: A 55) Proxy servers are also known as: A) firewalls. B) application gateways. C) dual home systems. D) packet filters. Answer: C 56) All of the following are used for authentication except: A) digital signatures. B) certificates of authority. C) biometric devices. D) packet filters. Answer: D 57) An intrusion detection system can perform all of the following functions except: A) examining network traffic. B) setting off an alarm when suspicious activity is detected. C) checking network traffic to see if it matches certain patterns or preconfigured rules. D) blocking suspicious activity. Answer: D 58) Which of the following is not an example of an access control? A) firewalls B) proxy servers C) digital signatures D) login passwords Answer: C 59) Which of the following statements is not true? A) A VPN provides both confidentiality and integrity. B) A VPN uses both authentication and encryption. C) A VPN uses a dedicated secure line. D) The primary use of VPNs is to establish secure communications among business partners. Answer: C 60) Which of the following statements is not true? A) Apple's Touch ID stores a digital replica of a user's actual fingerprint in Apple's iCloud. B) Biometric devices reduce the opportunity for spoofing. C) A retina scan is an example of a biometric device. D) Biometric data stored on an iPhone is encrypted. Answer: A 61) Face ID is an example of which of the following? A) biometrics B) encryption C) IDS D) firewall Answer: A 62) Which of the following is the most common protocol for securing a digital channel of communication? A) DES B) SSL/TLS C) VPN D) HTTP Answer: B 63) SSL/TLS cannot provide irrefutability. Answer: TRUE 64) The easiest and least expensive way to prevent threats to system integrity is to install antivirus software. Answer: TRUE 65) Explain the difference between symmetric key cryptography and public key cryptography. Which dimensions of e-commerce security does encryption address? Answer: Symmetric key cryptography involves the use of a secret cipher that transforms plain text into cipher text. Both the sender and the receiver use the same key to encrypt and decrypt the message. The possibilities for simple substitution and transposition ciphers are endless, but there are several flaws in these types of systems that make them inadequate for use today. First, for the sender and the receiver to have the same key, it must be sent over a communication medium that is insecure or they must meet in person to exchange the key. If the secret key is lost or stolen, the encryption system fails. This method can be used effectively for data storage protection but is less convenient for e-mail since the correspondents must pass the secret key to one another over another secure medium prior to commencing the communication. Second, in the digital age, computers are so fast and powerful that these ancient encryption techniques can be quickly and easily broken. Modern digital encryption systems must use keys with between 56 and 512 binary digits to ensure that decryption would be unlikely. Third, for commercial use on an e-commerce site each of the parties in a transaction would need a secret key. In a population of millions of Internet users, thousands of millions of keys would be needed to accommodate all e-commerce customers. Public key cryptography solves the problem of exchanging keys. In this method every user has a pair of numeric keys: private and public. The public key is not secret; on the contrary, it is supposed to be disseminated widely. Public keys may be published in company catalogs or on online. The public key is used by outside parties to encrypt the messages addressed to you. The private or secret key is used by the recipient to decipher incoming messages. The main advantage of a public key cryptographic system is its ability to begin secure correspondence over the Internet without prior exchanging of the keys and, therefore, without the need for a meeting in person or using conventional carriers for key exchange. Encryption can provide four of the six key dimensions of e-commerce security. It can provide assurance that the message has not been altered (integrity), prevent the user from denying that he/she has sent the message (nonrepudiation), provide verification of the identity of the message (authentication), and give assurance that the message has not been read by others (confidentiality). 66) What dimensions do digital signatures and hash digests add to public key cryptography and how do they work? Answer: Digital signatures and hash digests can add authentication, nonrepudiation, and integrity when used with public key encryption. Encryption technology also allows for digital signatures and authentication. The sender encrypts the message yet again using their private key to produce a digital signature. To check the confidentiality of a message and ensure it has not been altered in transit, a hash function is used first to create a digest of the message. A hash function is an algorithm that produces a fixed-length number called a hash or message digest. To ensure the authenticity of the message and to ensure nonrepudiation, the sender encrypts the entire block of cipher text one more time using the sender's private key. This produces a digital signature or "signed" cipher text. The result of this double encryption is sent over the Internet to the recipient. Then, the recipient first uses the sender's public key to authenticate the message. Once authenticated, the recipient uses his or her private key to obtain the hash result and original message. As a final step, the recipient applies the same hash function to the original text and compares the result with the result sent by the sender. If the results are the same, the recipient now knows the message has not been changed during transmission. The message has integrity. 67) Discuss the security of communications channels. Include definitions and explanations for the terms Secure Sockets Layer/Transport Layer Security (SSL/TLS), secure negotiated session, session key, and VPN. Answer: The Secure Sockets Layer of the Transmission Control Protocol/Internet Protocol (TCP/IP) communications protocol is the main method for securing communications channels on the Web. When you receive a message from a web server then you will be communicating through a secure channel; this means that SSL/TLS will be used to establish a secure negotiated session. A secure negotiated session is a client-server session in which the URL of the requested document, its contents, and the contents of the forms filled out by the user on the page, as well as the cookies that are exchanged, are all encrypted. The browser and the server exchange digital certificates with one another, determine the strongest shared form of encryption, and begin communicating using a unique symmetric encryption key, agreed upon for just this encounter. This is called a session key. SSL/TLS provides data encryption, server authentication, optional client authentication (as yet still rare for individual users), and message integrity for the TCP/IP connections between two computers. SSL/TLS addresses the threat of authenticity by allowing users to verify another user's identity or the identity of a server. It also protects the integrity of the messages exchanged. However, once the merchant receives the encrypted credit and order information, that information is typically stored in unencrypted format on the merchant's servers. While SSL/TLS provides secure transactions between merchant and consumer, it only guarantees server-side authentication. Client authentication is optional. In addition, SSL/TLS cannot provide irrefutability — consumers can order goods or download information products and then claim the transaction never occurred. Virtual private networks (VPNs) enable remote users to access an internal network from the Internet. They use protocols to create a private connection between a user on a local ISP and a private network. This process is called tunneling because it creates a private connection by adding an encrypted wrapper around the message to hide its content. It is called virtual because it appears to be a dedicated secure line when in fact it is a temporary secure line. VPNs are used primarily for transactions between business partners because dedicated connections can be very expensive. The Internet and VPNs can be used to significantly reduce the costs of secure communications. 68) What is the first step in developing an e-commerce security plan? A) Create a security organization. B) Develop a security policy. C) Perform a risk assessment. D) Perform a security audit. Answer: C 69) To allow lower-level employees access to the corporate network while preventing them from accessing private human resources documents, you would use: A) a firewall. B) an authorization management system. C) security tokens. D) an authorization policy. Answer: B 70) Which of the following statements is not true? A) A majority of states require companies that maintain personal data on their residents to publicly disclose when a security breach affecting those residents has occurred. B) The USA Patriot Act broadly expanded law enforcement's investigative and surveillance powers. C) The Cybersecurity Information Sharing Act was strongly supported by most large technology companies and privacy advocates. D) The Federal Trade Commission has asserted that it has authority over corporations' data security practices. Answer: C 71) Which of the following statements about blockchain is not true? A) A blockchain system is composed of a distributed network of computers. B) A blockchain system is inherently centralized. C) A blockchain system is a transaction processing system. D) Cryptocurrencies are based on blockchain technology. Answer: B 72) All of the following statements about Apple Pay are true except which of the following? A) Apple Pay is the most popular alternative payment method in the United States. B) Apple Pay is an example of a universal proximity mobile wallet. C) Apple Pay can be used for mobile payments at the point of sale at a physical store. D) Apple Pay has more users than either Google Pay or Samsung Pay. Answer: A 73) PayPal is an example of what type of payment system? A) online stored value payment system B) digital checking system C) accumulating balance system D) digital credit card system Answer: A 74) PCI-DSS is a standard established by which of the following? A) the banking industry B) the credit card industry C) the federal government D) the retail industry Answer: B 75) Which of the following is not a major trend in e-commerce payments in 2018-2019? A) Mobile retail payment volume decreases. B) PayPal remains the most popular alternative payment method. C) Large banks enter the mobile wallet and P2P payments market. D) Payment by credit and/or debit card remains the dominant form of online payment. Answer: A 76) All of the following are limitations of the existing online credit card payment system except: A) poor security. B) cost to consumers. C) cost to merchant. D) social equity. Answer: B 77) Which of the following statements about Bitcoin is not true? A) The computational power required to mine Bitcoins has increased over time. B) Bitcoins are completely secure. C) Bitcoins are illegal in some countries. D) In 2018, Bitcoin reprsented just under 40% of the full market for cryptocurrencies. Answer: B 78) Which of the following is a set of short-range wireless technologies used to share information among devices within about two inches of each other? A) DES B) NFC C) IM D) text messaging Answer: B 79) Zelle is an example of a P2P mobile payment app. Answer: TRUE 80) The creation of Bitcoins consumes a significant amount of energy. Answer: TRUE 81) Bluetooth is the primary enabling technology for mobile wallets. Answer: FALSE 82) There is a finite number of Bitcoins that can be created. Answer: TRUE 83) Explain how an online credit card transaction works, identifying the parties involved and describing how SSL/TLS is involved. What are the limitations of online credit card payment systems? Answer: The five parties involved in a credit card transaction are the consumer, the merchant, the clearinghouse, the merchant bank (acquiring bank), and the consumer's card issuing bank. The basic payment transaction process works like this: The consumer first makes an online payment by sending his or her credit card information via an online form at the merchant's website. Once this information is received by the merchant, the merchant software contacts a clearinghouse (a financial intermediary that authenticates credit cards and verifies account balances). The clearinghouse contacts the card issuing bank to verify the account information. Once verified, the issuing bank credits the account of the merchant at the merchant's bank. The debit to the consumer account is transmitted to the consumer in a monthly statement. SSL is involved in sending the consumer's credit card information safely to the merchant's website. When the consumer checks out using the merchant's shopping cart software, a secure tunnel through the Internet is created using SSL/TLS. Using encryption, SSL/TSL secures the session during which credit card information will be sent to the merchant and protects the information from interlopers on the Internet. There are a number of limitations to the existing credit card payment system, most importantly involving security, merchant risk, cost, and social equity. The security of the transaction is very poor because neither the merchant nor the consumer can be fully authenticated. The risks merchants face is high. Banks think of Internet credit card orders as the same type of transactions as mail orders or telephone orders. In these transactions, the credit card is not present. There is no way for the merchant to verify the legitimacy of the customer's card or identity before confirming the order. In these transactions, the merchant carries all the risk for fraudulent credit card use. Consumers can disclaim charges even though the items have already been shipped. Merchants also must pay significant charges. These high costs make it unprofitable to sell small items such as individual articles or music tracks over the Internet. Furthermore, credit cards are not very democratic. Millions of young adults and other adult Americans who cannot afford credit cards or who have low incomes and are, therefore, considered poor credit risks cannot participate in e-commerce as it is presently structured in the United States. 84) Today, online bill payment accounts for ________ of all bill payments, while paper checks account for ________. A) less than 10%; less than 25% B) about 25%; about 10% C) more than 55%; less than 20% D) about 95%; about 5% Answer: C 85) Define and explain how electronic billing presentment and payment systems (EBPP) systems work. Describe each of the main EBPP business models. Answer: EBPP refers to electronic billing presentment and payment systems, which are systems that enable the online delivery and payment of monthly bills. EBPP services allow consumers to view bills electronically using either their desktop PC or mobile device and pay them through electronic funds transfers from bank or credit card accounts. More and more companies are choosing to issue statements and bills electronically, rather than mailing out paper versions, especially for recurring bills such as utilities, insurance, and subscriptions. There are four main types of EBPP business models: online banking, biller-direct, mobile, and consolidator. The online banking model is the most widely used today. Consumers establish an online payment service with their banks and use it to pay bills as they come due or automatically make payments for, say, rent. The payments are made directly to the seller's bank account. This model has the advantage of convenience for the consumer because the payments are deducted automatically, usually with a notice from the bank or the merchant that their account has been debited. In the biller-direct model, consumers are sent bills by e-mail notification, and go to the merchant's website to make payments using their banking credentials. This model has the advantage of allowing the merchant to engage with the consumer by sending coupons or rewards. The biller-direct model is a two-step process, and less convenient for consumers. The mobile model allows consumers to make payments using mobile apps, once again relying on their bank credentials as the source of funds. Consumers are notified of a bill by text message and authorize the payment. An extension of this is the social-mobile model, where social networks like Facebook integrate payment into their messaging services. The mobile model has several advantages, not least of which is the convenience for consumers of paying bills while using their phones, but also the speed with which bills can be paid in a single step. This is the fastest growing form of EBPP. In 2016, Facebook and PayPal announced a deal in which Facebook users can pay for purchases on Facebook using PayPal. Facebook Messenger can be used for P2P payments and payments to groups to pay for meals and other activities. Facebook is not charging for these transfers and receives 97% of its Messenger revenue from advertising. In the consolidator model, a third party, such as a financial institution or a focused portal such as Intuit's Paytrust, Fiserv's MyCheckFree, Mint Bills, and others, aggregates all bills for consumers and permits one-stop bill payment. This model has the advantage of allowing consumers to see all their bills at one website or app. However, because bills come due at different times, consumers need to check their portals often. The consolidator model faces several challenges. For billers, using the consolidator model means an increased time lag between billing and payment, and inserts an intermediary between the company and its customer. Supporting these primary business models are infrastructure providers such as Fiserv, Yodlee, FIS Global, ACI Worldwide, MasterCard RPPS (Remote Payment and Presentment Service), and others that provide the software to create the EBPP system or handle billing and payment collection for the biller.