Study: Identity Theft Keeps Consumers From Shopping More Online

Wireless News
11-27-2004
Study: Identity Theft Keeps Consumers From Shopping More Online

WIRELESS NEWS-27 November 2004-Study: Identity Theft Keeps Consumers From Shopping More Online (C)2004 10Meters - http:// www.10meters.com

According to a new survey, about six in ten consumers (58 percent) say they may reduce their online shopping during the holiday season this year because of identity theft and other privacy concerns, up from 49 percent who expressed this view a year ago.
The second annual online shopping study conducted by TNS, a marketing information company, and TRUSTe, an online privacy company, indicates that almost half (46 percent) of Internet shoppers say they buy only from e-tailers that have a privacy statement or seal.

"The results show consumers have been paying attention to the onslaught of spyware, phishing, identity theft and credit card fraud," said Fran Maier, executive director of TRUSTe. "During this holiday season, consumers will be checking which Web sites are naughty and which are nice by looking for positive signs of privacy, security and safety like privacy seals."

Half of the 1,071 people surveyed this year plan to limit their holiday online shopping to some extent. Eight percent are so concerned that they do not plan to shop online at all, up two percentage points over last year.

The leading reasons cited by those reducing or halting online shopping include:

1. Identity theft concerns (mentioned by 52 percent in 2004, up from 35 percent in 2003)

2. Fear of credit card theft (44 percent in 2004, up from 30 percent last year).

3. Spyware potentially being downloaded onto one's computer (44 percent in 2004).

4. Receiving spam after purchasing from a Web site (42 percent in 2004, up from 38 percent in 2003).

"There is no doubt that consumers are far more wary of these online threats as we approach the shopping season this year," said David Stark, privacy officer of TNS. "Retailers today have to give consumers a reason to trust them with their personal information. A meaningful privacy statement or a privacy seal is an essential starting point."

The TNS/TRUSTe survey was conducted online between October 15 and 20, 2004.

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(Copyright M2 Communications Ltd. November 27, 2004)