Cloud computing is still an ambiguous buzzword. Each major technology company defines it a little differently (Luqmani, 2014). NIST defines cloud computing as a model for enabling convenient, on-demand network access to a shared pool of computing resources. IBM views cloud computing as cost-efficient model for distributing processes, applications and services while simplifying IT management simpler and increasing business responsiveness. Microsoft defines cloud computing as a method of distributing and scaling services on shared hardware.
Cloud security is an issue not only for consumers, but also for businesses. Companies hold highly classified information on their cloud servers. Consumers need to be assured that their information is safe with the company they do business with. Likewise, companies need to ensure their proprietary material is safe on their servers because if it gets compromised, the company’s vitality is on the line. E-Businesses are getting more and more involved in legal and security incidents (Fusilier & Penrod, 2009). The average cost per incident is $6.65 million (Meisner, 2009). Trust is not only a component of ethics, but also a component of security and fraud in relation to e-commerce. Characteristics of an appropriate, effective legal environment for businesses conducting transactions in e-commerce should:
- protect consumers and intellectual property rights
- foster digital security enablers, such as authentication of online transactions
- allow new businesses to register quickly and easily
(Fusilier & Penrod, 2009)
The Federal Trade Commission published that credit card fraud makes up 25% of all reported fraud (Parayitam, Desai, & Desai, 2008). Although companies spend a lot of time and money in communicating how they’re protecting the customer from security breaches, there are still many breaches occurring. This may cause one to question whether or not a company is actually implementing the security measures they communicate to their customers.