Section 4: Security Issues
There are different policy issues arising from issues of authorisation and integrity on the one hand, and message privacy on the other. They include:
- Establishing a basis of trust and the need for accreditation of certification authorities;
- Interoperability issues, especially involving cross-border transactions;
- Legal validity of digital signatures; and
- Security and law enforcement concerns, and privacy.
Digital technologies providing authentication, security and associated capabilities are well established but are also developing very rapidly. The power and flexibility of these technologies itself is a problem when it comes to issues of public policy and standardisation.
There is still considerable debate internationally about the long-term importance of certain technologies. It is not clear, for example, that digital signatures on their own will provide the degree of flexibility, security and assurance that is necessary for electronic commerce to flourish. The rapid take off of electronic commerce is occurring in the midst of this debate. The market place is pragmatic; solutions to particular problems will be found or the problems will be by-passed. If digital signature technologies are not simple and intuitive for end users, they will be ignored and become irrelevant.
As governments around the world have become more familiar with the policy implications of these new technologies there has been a tendency to back off from earlier interventionist positions. International forums have established positions on ecommerce which emphasise the need for market leadership and cross-border interoperability. At the same time, governments have a role in providing role models for the successful use of ecommerce in the provision of their own services.
There is a danger that too much emphasis is being put on the need for governments to intervene to provide levels of assurance in areas such as authentication simply because of the novel nature of e-commerce. As ecommerce moves into the mainstream and market familiarity grows, these concerns are likely to ease.
It should not be overlooked that there is no evidence that the lack of supportive intervention by most governments, including the New Zealand Government, is actually impeding electronic commerce from flourishing. There is no reason, therefore, for hurried and possibly harmful regulatory action by the Government.
The best options for the Government at this stage are to:
- actively monitor developments in this area;
- maintain a high level of awareness of the technologies and how they are being implemented;
- use the technologies to enhance the delivery of its own services;
- be prepared to take appropriate action when necessary through legislative or regulatory action.
Gaps
- The Government's policy on security issues needs to be formalised and made public.
Key Agencies: Commerce, Security Agencies, DPMC.
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