However, the disadvantages include the possibility of an invasion of privacy and security during an electronic transaction. Electronic commerce by its nature does not recognise borders and it raises questions regarding security of transactions, standards, protection of intellectual property, taxation, trade law, privacy and many other issues. Technology allows others to intercept, collate and use the data for direct marketing, such as to determine internet browsing patterns. When a purchase decision is made on-line the consumer is obliged to provide sensitive information, such as an address for delivery and details of payment. Additionally, users can also be the victims of spamming , the equivalent of junk mail.
Security is of paramount importance in the e-commerce world.
The National Bank of Australia uses the RSA system of encryption. This system public key cryptology, two keys, a public and a private key. A digital signature or certificate can be attached to electronic transmissions to authenticate the identity of the sender of the message. The IPP apply to federal and ACT Government departments and agencies, but they do not apply to the private sector. In March 1997 the Prime Minister offered the services of the Privacy Commissioner to help Australian businesses to develop voluntary codes of conduct to meet privacy standards.