Abstract
Security and privacy in distributed systems from various attacks and un-authorized users can be implemented from various security techniques. These techniques enable protection of secure data over distributed system especially in web security applications including online transactions. Techniques which provides privacy and security for various online transaction using one factor or two factor or three factor authentication works efficiently and provides high security but here a new and efficient techniques is implemented which is based on two factor authentication using E-Smart cards and Image based authentication is implemented. The proposed technique implemented provides security from various attacks as well as minimizes the communication overhead in distributed systems in E-commerce.