ip: Opinions Divided In Japan On Internet Payment Security

[Dave Farber <farber () central cis upenn edu>]

Opinions are divided in the Japanese computer industry about the security of
personal information, such as credit card numbers, used in shopping through
Internet, industry officials said. 


     Matsushita Electric Industrial Co. and IBM Japan Ltd., which teamed up
recently in the value added network (VAN) field, doubt that security can be
maintained, given the limits of existing technology, an IBM official said.
The two companies have proposed building an in-house network security system
for making payments by computer, he said. 


     The two firms said although goods can be ordered on Internet, the
world's largest telecommunications network, it is preferable for payments to
be made through a specialized system linked to the Internet but is more
difficult for outsiders to invade. The system is separate from Internet, the
official said. 


     Microsoft Co., the Japanese arm of Microsoft Corp. of the United
States, said that security can be maintained by using an
information-protecting code system it has developed. 


     The system has been adopted by the Visa and Master Card international
credit card companies, Microsoft said, adding that the code system is
trustworthy and convenient for users because it enables them to place orders
and to make payments using the same Internet system.