CHAPTER ONE
                                              INTRODUCTION     ÂÂÂ
1.1Background of the study                                      ÂÂÂ
      “Is it a fact that by means of electricity, the world of matter has become a great nerve, vibrating thousands of miles in breathless point of time? Rather the globe is a vast head, a brain, instinct with intelligence! Or shall we say it is itself a thought nothing but a thought†         Even before the event of September 11, electronic security was a growing area of concern for bank and other financial services providers in managing daily operational risk. Now, because of the rapid growth in wireless technology and its increasing use in providing financial services in emerging market, either in coordination with the internet or on a freestanding basis, there is even more demand for a careful look at issues related to electronic security. Electronic security is the use of electronics means to exchange information or to transfer sighs and representation of values and to execute transactions in a commercial environment. E-security can be described on one hand as those policies, guidelines, processes and action needed to enable electronic transactions to be carried out with a minimum risk of breach, intrusion, or theft. E-security is any tool, techniques, or process used to protect a system’s information asset. The degree of e-security used for any activity should be proportional to the activity underlying value, thus, security is risk management tool or risk mitigation tool, and an appropriate security means mitigation of the risk for the underlying transaction in proportion to its value.          The need for security is a constant of doing business over the internet because, in essence, the internet is a broadcast medium. E-security enhances or adds value to a naked network and is composed of both a “soft†and a “hard†infrastructure. Soft infrastructure component are those policies, processes, protocols, and guidelines to create the protective environment to keep the system and data from compromise while the hard infrastructure are the actual hardware and software needed to protect the system and its data from internal and external threats to security.