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Electronic Data Interchange (EDI) is rapidly becoming integrated in a wide range of businesses. EDI usage is expected to increase in the immediate future. This high growth in a potentially paperless environment presents a variety of security risks, such as disclosure of messages, tampering with messages, etc. Current legal and contract‐related literature dealing with paper documents is not equipped to deal with such problems. Identifies different types of security risks and EDI agreements, and examines potential security risks under these agreements. Discusses future research directions. This synthesis should be useful to EDI users and researchers.

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