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BizReport : Law & Regulation : April 13, 2012

4 in 10 consumers resigned to online financial security breach

A new survey from mobile security firm Entersekt reveals that more than four out of 10 consumers believe it's only a matter of time before their financial security is breached after conducting online transactions.

by Helen Leggatt

entersekt logo.jpgEntersekt's survey of 1,000 consumers found that while many aren't prepared to give up the convenience of online transactions, 41% are convinced their financial security will be breached in the future.

Their fears may be well founded. Over half (53%) of those surveyed had been directly affected by card fraud or knew someone that had. Some 19.5% said they had had been a victim of card fraud in the last year, 16.4% said their partner had, and 19.3% knew of someone that had been affected.

Despite the fear of fraud, just 31% check how secure a website or procedure is before making an online transaction yet only 13% will let their credit card out of their sight when paying for something in a physical store.

According to Entersekt's findings, today's customers aren't put off by robust security practices. Over three-quarters are happy to use keys, fobs and passwords. Just 18% would prefer less hassle by way of less security hoops to jump through.

"In today's world, consumers are not only aware that fraud exists, but many have either experienced it personally, or know someone that has and this is verified by our survey," said Schalk Nolte, CEO of Entersekt.

"This criminality impacts all of us through increased insurance, increased prices, and increased hassle. However, what I think is interesting and actually quite comforting, is that people are happy to be inconvenienced if it means they're better protected."

Tags: financial data, financial transaction, fraud, mobile security, onine security, online security, online transaction

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