Assessment Of Risks In Electronic Transaction: A Study Of Mobile Payments In Dodoma Municipality

ABSTRACT

In this dissertation, the researcher presents an assessment of risks in electronic transactions; a case of Mobile Payments in the Municipality of Dodoma. Specific objectives of this study are to identify risks associated with electronic transactions, to assess factors associated with risks in electronic transactions and to suggest ways of reducing electronic transaction risks. The study is significant to the governments, to researchers and hosting institutions. To the government, it can assist in policy making that will govern service providers and clients; to the researchers, it will provide a solid foundation and a current knowledge on the assessment of risks in electronic transaction; to the hosting institution, it will provide awareness to UDOM community on risks in electronic transactions. A probabilistic sampling technique and a case study were employed. A sample size of one hundred seventy eight (178) respondents was selected to contribute in the study. Among which 116 were mobile money clients and 62 were mobile money agents. The study made use of both primary and secondary sources of data collection. The results indicate that, there are risks in electronic transaction which are operational risks, legal risks, reputation risks and other risks. The more likely risks in operational risks are risks due to password sharing and wrong input of receiver address. In the case of legal risks, the likely issues identified are risks due to liability issues and lack of means for testing legal and illegal money have more likelihood while risks due to accuracy, delay of response and network failure and risks due security aspects are more likely reputation risks. The results also shows that human factors, demographic factors, technological factors and legal factors are factors that are associated to risks in electronic transactions.