Identity Theft and Online Security Worries Are Causing Changes in How People Use the Internet (News Release)   6/23/2005 - 697 views,

NEW YORK, June 23 /PRNewswire/ — Online consumers are expressing growing
worries about identity theft, The Conference Board reports today. More than 13
percent of all Internet users say they or a member of their household has
already been a victim of identity theft.
The Consumer Internet Barometer is produced by The Conference Board and
TNS NFO, a division of TNS, the world’s largest custom research company, and
covers 10,000 households.
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.”