Problem:

a) Authentication is the mechanism whereby a system securely identifies their users. Authentication system provides answers to the following questions:

- Who is the user?
- Is the user really who he/she claims to be?

Typical authentication system usually consists of five major key elements. List them down.

b) Differentiate between malicious and non-malicious threats providing a suitable example for each.

c) Outline the main differences between a debit card and a credit card as a payment instrument.

d) Explain what is an e-Check and how does it works?

e) In what circumstances is the use of a credit card not appropriate for online payment of goods? What is the proposed alternative payment instrument used then?

f) A credit card gateway is one element of a suite of e-commerce software packages that when incorporated into a website allow for online shoppers to pay for goods and services. Outline the different steps involved when processing the transaction starting with the customer placing an order.