E-Commerce has been the source of enormous innovations into today’s business world. It has given base to the emergence of numerous international and domestic business ventures. Some organizations in Pakistan provide E-Commerce service to its clients which involve electronic transactions. These electronic transactions involve processing the sensitive information of clients such as credit cards etc. Security of the sensitive information of client is a big challenge for both clients and companies providing E-Commerce services. The responsibility of the service provider company is to make the transaction secure and the responsibility of the client is to keep the critical information secret and frequently check his/her account status in order to detect fake transactions if any. This research discussed the most common and important security issues related to e-commerce in Pakistan. This research will help the e-commerce companies to promote e-commerce business in order to attract more people towards e-commerce and moreover the user will get to know about the major risks associated with e-commerce transactions and will get guidance to use e-commerce safely and securely.