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BizReport : Ecommerce archives : February 21, 2007

Online sales affected by low customer confidence in data security

Online consumers expect businesses, not banks, to compensate for fraudulent transactions.

by Helen Leggatt

A survey of 2,500 U.K. adults was carried out by Yougov for Symantec, an infrastructure and security software firm. It found that 40 percent of online consumers believe that businesses, not banks, should be held responsible for the security of their financial data.

The majority of the surveyed consumers, 69 percent, said they would prefer carrying out online transactions if they could be assured by the e-tailers that adequate steps were being taken to protect their personal data.

"With an increasing number of services becoming available online and the huge potential for further growth in online spending, these results demonstrate that businesses need to be aware of what is holding customers back and take steps to boost consumer confidence,” said Richard Archdeacon, director of Symantec's innovations team.

It appears that there needs to be a clear and obvious message displayed by e-tailers with 77 percent of Yougov respondents stating they would be more likely to spend online if businesses would guarantee compensation should their identity or money be stolen.

Considering consumer concerns are so high, it is surprising that only 33 percent of those surveyed for Symantec bothered to investigate company credentials before carrying out an online transaction.

However, there is cause for consumer concern. A survey carried out by Early Warning, online fraud experts, found that three-quarters of 100 online e-tailers surveyed were not abiding by the e-commerce rules and regulations.

Tags: Early Warning, fraud, online retailing, online shopping, online spending, online transactions, security, Symantec

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