Revision with unchanged content. The rapid development and the resultant omnipresence of information technology in almost all segments of the business world have considerably impacted numerous aspects of business transactions. Among the most significantly affected issues are online privacy and information security. Several new, important, yet largely unclear issues arise. Is conumer privacy definitely eroding in e-commerce environment, as some privacy advocates claimed? What are the real values of the privacy education among online consumers? Are there tangible and quantifiable benefits for firms to protect consumers’ online privacy? And while numerous security systems have been proposed to identify potential attackers and protect firms’ assets, what happens if the firm faces intelligent adversaries who can learn, and thus “game“ these systems? The analyses in this book provide valuable insights to the above issues, clarify some conventional wisdoms, and make practical suggestions for industry practitioners, as well as general consumers, to make more informed decisions regarding online privacy and information security issues. This book will also be valuable to academic researchers interested in these issues.