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The Internet remains as a wonder for the 21st century and its growth is phenomenon. According to a recent survey, the online population is now about 500 million globally and if this trend continues, it should reach 700 million by the end of 2002. This exponential growth of the Internet has given rise to several security, privacy and ethical concerns. There are laws governing those issues in several countries, but these laws are difficult to apply due to the rapid change of the technology, as well as security breach. Internet commerce or electronic commerce (e-commerce) poses constant threats to privacy and security. The Web has become a playground for lawbreakers. The aim of this paper is to give a snapshot of the current status of the Internet and also to discuss how it is creating a nightmare for governments that try to find a way to safeguard both consumers and providers of information from possible misuse. The paper suggests that the use of the Internet must be controlled with proper legislation to minimize its negative impact o