What does the term 'nonsecure transaction' refer to in electronic commerce?

The term 'nonsecure transaction' in electronic commerce specifically refers to a transaction that lacks encryption or any other substantial security measures. Such transactions are vulnerable to interception and manipulation, exposing sensitive information such as payment details or personal identification to cyber threats. In an era where online security is paramount, nonsecure transactions are considered high-risk for both consumers and merchants alike.

The essence of electronic commerce emphasizes the need for a secure environment to conduct transactions, which typically includes encryption protocols to protect data during transmission. Thus, classifying a transaction as nonsecure directly implies the absence of these protective measures, making option B the most accurate description.

Other choices do not encapsulate the meaning of 'nonsecure transaction.' For example, transactions that require two-factor authentication actually enhance security rather than remove it. Similarly, a transaction verified by a financial institution is typically associated with enhanced trust and security, while those conducted in physical stores are not relevant to the electronic transaction context, which focuses on online activities. Hence, the term is most accurately and appropriately defined by the absence of encryption or security measures.