Security Failures In E-Trade Research Assignment Paper (Essay Sample)

SECURITY FAILURES IN E-TRADE
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Introduction
E-trade was founded in 1982 in California as a financial service firm and currently the company has its headquarters in New York City. E-trade was founded for active traders as well as the long-term investors. The company is an online discount stock brokerage organization that targets self directed investors. The company’s platform provides the investors with the capability to buy as well as sell securities such as options, bonds, mutual funds as well as exchange traded funds through electronic trading systems or even though mobile phones. The company also provides banking services to those investors considered retailers with focus on sweep deposits and other saving products. Therefore, since the companies carries out its operation in reliance to online electronics platforms, there are cases on security failures that put its operation at stake hence leading to the question how safe its system is in relation to cyber crime.
Security failures
According to Eugine & Regi (2016), “the online business transactions are associated with failures in customer privacy and security of information and this type of failure is caused by compromise that exists within the internet certificates that give criminals the advantage to counter the normal operation of the system hence leading to breakdown or slow execution of commands.” Furthermore, when the certificates are compromised, the criminals have the capability of gaining access to the data based where they retrieve customer data which can be used for sabotage or theft of information.
Besides, according to Eugine & Regi (2016) “online financial transactions are associated with delay in receiving of responses the executed transactions as well as some sort of hidden cost that the customers and in this case investors that they is not disclosed to them.” For instance, in the case, of E-Trade, all the transactions are executed online and such type of business is fond of delay in receiving feedback from the automated system or the customer care representative. This happens when the system is brought down and thus all the transactions that had been carried out previously remain pending causing delays on the side of the customers as well as the company. Another consideration of failure that the company ends up imposing hidden charges to the customers to compensate the time lost when the system was down and also, when the system is hacked, there is hidden information that is siphoned from the customers which is used to create vulnerability to be used to attack other customers.
According to Bingi, Mir & Khamalah (2000), “ there are issues related to policing...