Final answer:
E-business transactions pose heightened fraud risk due to their digital nature, which can expose sensitive information to interception and fraud, despite the roles of banks in securing financial transactions.
Step-by-step explanation:
The primary concern here is option c) They involve digital transactions. Digital transactions can be at higher risk of fraud because they are not handled in person and usually require the transmission of sensitive information over the internet. Without proper security measures in place, this information can be intercepted or compromised. Additionally, the anonymity of digital transactions can make it easier for fraudsters to operate without detection.
Banks act as financial intermediaries to make transactions safer and reduce transaction costs by bringing savers and borrowers together. However, despite the role of banks in facilitating secure transactions, e-business still faces challenges such as identity theft, phishing scams, and malware, which are not as prevalent in physical business environments. Banks are involved in the payment system to help secure financial transactions, but it is up to the e-businesses to implement robust cybersecurity measures to protect against fraud.