Entry Details: 06/23/2005

Notes/Comments:
Says Lynn Franco, Director of The Conference Board's Consumer Research Center: "Misplaced or stolen data from major financial service institutions such as Citigroup, Bank of America and Wachovia, and this week's admitted mishandling of data by the credit card processing company CardSystems Solutions, have increased consumers' concerns about online security. Consumers have taken steps to be more cautious, which is a good thing. The downside is the negative impact to online retailers that may slow the growth of e-commerce." Growing security concerns have caused Internet users to alter their online behavior. Consumers are most wary of online financial transactions, followed by making online purchases. More than half of online consumers say their level of concern has grown over the past year and many have changed the way they use the Internet. Latest survey data show that more people are buying less online. Nearly 70 percent of online users have installed additional security software on their PCs, 54 percent now "opt-out" of special offers, and 41 percent are purchasing less online. Some 27 percent say they have read online privacy statements and 21 percent are using multiple email addresses. The majority of online consumers, 54 percent, say they are more concerned today about the security of their personal information on the Internet than a year ago. Some 42 percent say their level of concern has not changed; but only 4 percent say they are less concerned today. Nearly two-thirds of Internet users age 55 and over claim they are more apprehensive, while only 40 percent of consumers under age 35 are more concerned today. "Identity theft is the fastest growing crime in the nation, according to the Federal Trade Commission," says David Stark, TNS' North American Privacy Officer. "Behind phishing attacks and malicious spyware are criminals whose goal is to get people's names, credit card numbers and account information for fraudulent purposes."

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