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Student Name: AMNA GHAFFAR

Roll No: F22RDOCS1M08024

Title: Research paper

Topic: Application of cloud computing in banking and e-
commerce and related security issues and challenge
Department: BSCS 5th Semester
Submitted to: M. Mazhar Shahid
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Application of cloud computing in banking and e-commerce and

related security issues and challenge
Abstract:
Cloud computing is a modern technological business model that helps companies
in many industries, especially about E-commerce where digital computing offers new
opportunities. Cloud computing technology will bring to banks such advantages as cost savings,
enhanced data processing capacity and improved quality of financial services. The immergence
of cloud computing makes various industries participate in the application of that technology
and the banking sector in naturally no expectation. At present, more and more banks have
begin to consider migration their traditional IT infrastructure of cloud computing. For bank
industry, the 1st and foremost task to solve the security problem, cloud computing should be
applied step by step gradually nothing from the peripheral business to the core business, cloud
service providers public financial cloud can quickly support the development of their business
and effectively bridge the information divide. Privacy security of cloud computing: The structural
characteristics of the cloud computing environment are the main causes of security problems. First, the
nodes involved in computing are diverse, sparsely distributed and often unable to be effectively
controlled. Second, the cloud service provider (CSP) has the risk of disclosing privacy in the process of
transmission, processing and storage. Because cloud computing is based on technology, the security
vulnerabilities of existing technologies will be directly transferred to a cloud computing platform and
have even greater security threats.(1) Cloud computing is known as on-demand computing and one of
the latest developments in the IT industry. It provides the full scalability, reliability, high performance
and relatively low cost feasible solution as compared to dedicated infrastructures. Security of Cloud
computing is a sub-domain of network security, computer security and information security. This paper
presents the role to improve cloud security and how cloud computing is impacting the financial services
industry and what that management need to focus on when developing a strategy for their
organization’s adoption of cloud computing.(2)

Keywords: Cloud Computing, E commerce , Banking Challenges Security Issues.

Introduction:
Cloud computing has an impact on numerous areas, including e-learning, healthcare,
and e-commerce. It provides high-quality, low-cost internet services with a high
economic value. This is unquestionably the next revolution in the realms of the internet
and business. A cloud application, or cloud app, is a software program where cloud-
based and local components work together. The emergence of cloud computing makes
various industries participate in the applications of that technology. For banks, cloud
computing solutions have made the maintenance and use of information system
infrastructures to the greatest degree of simplification. But they also bring a certain
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degree of challenge to banks in terms of data security, business continuity, and so on.
We review the research progress on privacy security issues from the perspective of
several privacy security protection technologies in cloud computing..

Literature:
The technology of cloud computing virtualization provides efficient resources for end users. The
characteristics of cloud computing include manageability, scalability and availability. In addition,
cloud computing has the advantages of economy,on-demand service, convenience, universality,
multi tenancy, flexibility and stability. Cloud computing mainly provides three service delivery
models and four developmentpatterns(http://www.cloudsecurityalliance.org/): infrastructure
as a service (IaaS),platform as a service (PaaS) and software as a service (SaaS), public cloud,
private cloud, hybrid cloud,community cloud and virtual private cloud.(8) This study investigates
the integrated factors that impact in adopting Cloud computing technologies in banking
industries in order to adopt innovation benefit. Benefits and challenges of cloud adoption in
banking industry are also identified. We have proposed a cloud adoption framework Cost,
Organizational, Technological, Environmental and Decision-maker (COTED) factors.(9)

Security Issuess:

LOSS OF GOVERNANCE: in using cloud infrastructures, the client necessarily cedes

control to the Cloud Provider (CP) on a number of issues which may affect security. At the
same time, SLAs may not offer a commitment to provide such services on the part of the
cloud provider, thus leaving a gap in security defences.
LOCK-IN: there is currently little on offer in the way of tools, procedures or standard data
formats or services interfaces that could guarantee data, application and service portability.
This can make it difficult for the customer to migrate from one provider to another or
migrate data and services back to an in-house IT environment. This introduces a
dependency on a particular CP for service provision, especially if data portability, as the
most fundamental aspect, is not enabled..
ISOLATION FAILURE: multi-tenancy and shared resources are defining characteristics of
cloud computing. This risk category covers the failure of mechanisms separating storage,
memory, routing and even reputation between different tenants (e.g., so-called guest-
hopping attacks). However it should be considered that attacks on resource isolation
mechanisms (e.g.,. against hypervisors) are still less numerous and much more difficult for
an attacker to put in practice compared to attacks on traditional OSs.
COMPLIANCE RISKS: investment in achieving certification (e.g., industry standard or
regulatory requirements) may be put at risk by migration to the cloud:
if the CP cannot provide evidence of their own compliance with the relevant requirements
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if the CP does not permit audit by the cloud customer (CC).

In certain cases, it also means that using a public cloud infrastructure implies that certain
kinds of compliance cannot be achieved (e.g., PCI DSS (4)).
MANAGEMENT INTERFACE COMPROMISE: customer management interfaces of a
public cloud provider are accessible through the Internet and mediate access to larger sets
of resources (than traditional hosting providers) and therefore pose an increased risk,
especially when combined with remote access and web browser vulnerabilities.
DATA PROTECTION: cloud computing poses several data protection risks for cloud
customers and providers. In some cases, it may be difficult for the cloud customer (in its role
as data controller) to effectively check the data handling practices of the cloud provider and
thus to be sure that the data is handled in a lawful way. 

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