The third International Workshop on Information Security was held at the U- versity of Wollongong, Australia. The conference was sponsored by the Centre for Computer Security Research, University of Wollongong. The main themes of the conference were the newly emerging issues of Information Security. Mul- media copyright protection and security aspects of e-commerce were two topics that clearly reffect the focus of the conference. Protection of the copyright of electronic documents seems to be driven by strong practical demand from the industry for new, e cient and secure solutions. Although e-commerce is already booming, it has not reached its full potential in terms of new, e cient and secure e-commerce prools with added properties. There were 63 papers submitted to the conference. The program committee accepted 23. Of those accepted, six papers were from Australia, ve from Japan, two each from Spain, Germany and the USA, and one each from Finland and Sweden. Four papers were co-authored by international teams from Canada and China, Korea and Australia, Taiwan and Australia, and Belgium, France and Germany, respectively. Final versions of the accepted papers were gathered using computing and other resources of the Institute of Mathematics, Polish Academy of Sciences, Warsaw, Poland. We are especially grateful to Jerzy Urbanowicz and Andrzej Pokrzywa for their help during preparation of the proceedings.