Question
Two years ago, your best friend Scott Adams started a home business selling custom-made chairs and tables. His original designs quickly became popular, and he
Two years ago, your best friend Scott Adams started a home business selling custom-made chairs and tables. His original designs quickly became popular, and he began selling in large quantities. To take advantage of the upcoming holiday season, Scott decided to begin selling over the Internet. He contacted a Web page designer and is now ready to go live with the site. Although he is familiar with the gist of Internet retailing, Scott is concerned about the possibility of fraud involving false online purchases where perpetrators impersonate customers and place orders. Knowing about your background in fraud, he asks you how to prevent and detect fraud in his new venture.
- What methods of internal controls should be taken within such a firm? For instance, would off-site data storage and backups be a must-have?
- How does Scotts new form of revenue need to be secured? What suggestions do you have for payment authorization and verification? Explain.
- Is it a good idea to rely on the Web page designer solely to assist with his pages landing site? Why or why not? Explain.
Please help to answer these questions. Thank you!!
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