New CyberSource UK Fraud Report finds:
- 71% are concerned about the level of risk when purchasing online, up from 66% in 2008 – so their perception of online shopping as a safe activity is not improving.
- 76% of these consumers say that they would never use a mobile phone to make purchases.
- 3D Secure schemes (Verified by Visa and MasterCard SecureCode) are being used by 69% of respondents (Editor's Note: According to a recently released study (PDF) 3DSecure Schemes are a "textbook" example of how NOT to authenticate an online user.)
- Card reader usage increased slightly in 2009 - 29% of consumers now utilize such devices as part of their online banking process.
- 68% of consumers who shop online said they trust retailers with their personal details and payment information. In direct contrast, when looking at all consumers (including those who do not buy online), 59% are not comfortable with retailers storing their credit card details
CyberSource Fraud Report: Consumers Hold Retailers Responsible for Safety of Online Shopping
READING, England--(BUSINESS WIRE)--Fraud Report: Almost a quarter (24%) of UK adults believe retailers are primarily responsible for making online shopping safer, according to a survey of 1004 consumers by CyberSource Ltd. This sentiment has not changed since 2007. Significantly, only 12% of consumers state that they are personally responsible.
Sixteen percent of respondents feel that banks are answerable, whilst 12% believe their ISPs are responsible. The same percentage said the government or the card schemes are accountable. Only 5% of respondents feel the police own responsibility for making online shopping safer.
The survey revealed that UK online shoppers are taking measures to protect themselves. Eighty-five percent of respondents say they look for signs that the payment page is secure, such as the green address bar; the same percent prefer to buy online from reputable retailers. 3D Secure schemes (Verified by Visa and MasterCard SecureCode) are being used by 69% of respondents, whilst card reader usage increased slightly in 2009 – in all, 29% of consumers now utilise such devices as part of their online banking process.
Simon Stokes, Managing Director at CyberSource Ltd, said, “Consumers say they feel retailers are primarily accountable for making online shopping safer. But consumers themselves have a role in this effort, and they should be encouraged to play it. Never divulge personal information on social networking sites, for example; never respond to requests for personal information from banks or government agencies that should already have that information. And of course those of us in the eCommerce industry need to do more to help educate consumers on ways security can be boosted.”
Third Consecutive Year: Half of UK Consumers Still Not Shopping Online
Fifty percent of UK consumers (aged 16+) still do not buy online, representing a large untapped market. This figure has only declined slightly since the first survey in 2007. The non-buyers cite several reasons in the survey – 67% say they prefer the high street experience. 41% say they are concerned about online security, and 36% say they don’t have internet access. When looking at the total sample, 71% are concerned about the level of risk when purchasing online, up from 66% in 2008 – so their perception of online shopping as a safe activity is not improving.
The primary motivator for those who do shop on the internet, according to the survey, is to save time and hassle (83%). Other significant reasons include immediate access to a wide range of products and services (73%) and greater cost savings (61%). Interestingly, 76% of these consumers say that they would never use a mobile phone to make purchases.
Stokes continued, “Mobile payments mean different things to different people – both merchants and consumers. This may have contributed to a lack of understanding about the whole area. It will be interesting to see how consumer perceptions evolve as we move out of the early adopter phase and mobile payments become more mainstream. The introduction of new smart phone devices and technologies should also help to drive consumer acceptance.”
Uncertainty Surrounds Payment Data Security
Sixty-eight percent of consumers who shop online said they trust retailers with their personal details and payment information. In direct contrast, when looking at all consumers (including those who do not buy online), 59% are not comfortable with retailers storing their credit card details. This may, in part, be due to media coverage; survey respondents hear more negative stories about the safety of shopping online (59%) than positive news (46%).
“With the right strategies in place, online retailers can provide a safe and secure environment for their customers,” said Stokes. “However, the public perception may differ. Retailers should clearly inform consumers not only about the anti-fraud methods they employ, but also the efforts they take to secure sensitive payment data. This is particularly important as companies look to grow their internet sales channel and tap into the high proportion of consumers that are yet to embrace online shopping.”
This survey was conducted by market research firm GfK NOP as part of a wider CyberSource project – the findings constitute the sixth annual UK Online Fraud Report, available now.
To obtain a copy of the report, please visit www.cybersource.co.uk/ukfraudreport. Journalists or analysts, please contact Danielle Cook or Sarita Sawhney on +44 (0)1628 628080 or cybersource@noiseworks.com.
The sixth annual UK fraud survey was commissioned by CyberSource Ltd and conducted by market researchers Vanson Bourne and GfK NOP. The report this year examines data from 204 merchants and 1004 consumers, aged 16+. The consumer survey took place 16-18 October 2009. The survey group was designed to be nationally representative of adults throughout the United Kingdom, and weighting was applied to the results to bring the data in line with national profiles.
About CyberSource Ltd
CyberSource Ltd is a wholly-owned subsidiary of CyberSource Corporation (NASDAQ: CYBS). CyberSource solutions enable electronic payment processing for web, call centre, and POS environments. CyberSource also offers industry leading risk management solutions for merchants accepting card-not-present transactions. CyberSource Professional Services designs, integrates, and optimises commerce transaction processing systems. Approximately 295,000 businesses use CyberSource solutions, including half the companies comprising the Dow Jones Industrial Average. The company is headquartered in Mountain View, California, and has sales and service offices in Japan, Singapore, the United Kingdom, and other locations in the United States including Bellevue, Washington and American Fork, Utah. For more information on CyberSource please visit www.cybersource.co.uk or email uk@cybersource.com.
©2010 CyberSource Corporation. All rights reserved. CyberSource is a registered trademark in the U.S. and other countries. All other brands and product names are trademarks or registered trademarks of their respective companies.
