Online shoppers making smaller purchases

Online shoppers are spending less on online shopping because they fear identity theft, a new study claims.

13:05 19 October 2005

Online shoppers are spending less on online shopping because they fear identity theft, a new study claims.

RSA security found that although the number of web transactions is on the rise, people are cutting the amount they pay on their cards.

Just over one in ten of British shoppers have cut back on their online purchases. In America, 16 per cent of consumers are spending less than they did on internet sites with almost half of online shoppers saying they have "little" or "no confidence" that businesses were ensuring their personal data was safe from fraudsters.

British consumers are the biggest users of internet shopping, ahead of their American and European counterparts. British shoppers splashed out an average of 231 whilst Americans were more restrained spending just 129 in September this year.

Art Coviello, president and CEO of RSA Security said: "What concerns me is that, while the industry is working hard to promote best practices and defence measures to our citizens, a high volume remain blissfully unaware of what identity theft is - leaving them exposed to potential exploitation."

"For consumers, the key to online confidence lies at the door of the business community - meaning that it is imperative for online vendors to be seen taking appropriate measures to protect their customers' interests."

Nine out of ten US consumers know of the risks of identity theft but in Europe, one in three people remain unaware of the risks it poses.

The RSA survey also found that customers hold e-tailers and banks accountable for protecting their personal information and compensating customers who are victims of online fraud.

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