ID fraud hurts trust in ecommerce

The growth of identity theft is damaging consumer trust and confidence in ecommerce, according to research.

Online retailers must act swiftly to educate customers about protecting personal information to prevent a surge in crime, says the survey from RSA Security.

The study suggests that 57 per cent of consumers believe responsibility for protecting their online identities and personal details lies with web-based companies such as banks and retailers.

'The report shows that the understanding consumers have of how they treat sensitive information about their online identity is very low,' said Tim Pickard, RSA strategic marketing director for Europe.

'This is probably already damaging ecommerce because in order for consumers to participate they have to trust the environment they're working in. And the big brand name companies will win because they're already trusted in the physical world,' he said.

The research also found that 79 per cent of people would be willing to give enough personal details to strangers in the street for a fraudster to steal their identities.

A separate survey from Infosecurity Europe 2004 also found that 71 per cent of office workers questioned at London's Liverpool Street Station would swap their passwords for a bar of chocolate.

'There needs to be an awareness campaign for consumers to understand better,' said Pickard.

'It's no good for consumers to put the onus on vendors to take that responsibility. Online organisations share a duty of care to educate consumers.'

Tony Neate industry liaison officer at the National Hi-Tech Crime Unit says identity theft is becoming a global issue.

'As traditional identity theft such as credit card fraud becomes more difficult due to increased security initiatives such as Chip-and-PIN, criminals are rapidly looking for new ways to conduct fraud,' he said.