Fraud Report: Fear Steers UK Shoppers Away from Online
41% cite security fears as reason for not shopping on the web
READING, UK – February 11, 2009
More than half the UK population still does not shop online, according to a survey of 1,000 consumers undertaken by CyberSource Ltd. Reasons range from simple preference for high street shopping to lack of a computer or internet access, but 41% of people who don’t shop online say an issue is security. Looking at the total sample (including those who do shop online), 66% say they are concerned about the level of risk.
According to survey respondents, the most common source of information about the safety of online shopping is stories in the media, which naturally focus on crimes or losses of credit card information. But consumers also rely on friends and family for advice. About a third of survey respondents say that they or someone they know has been a victim of online credit card fraud.
"With the abundance of media coverage about security breaches, it is not surprising that some shoppers are frightened off," said Simon Stokes, managing director of CyberSource Ltd. "The challenge to the industry is educating consumers to shop safely, to minimise their exposure to fraud. As more people gain access to the Internet and realise the convenience, value, and safety of shopping online, I believe we'll see a higher percentage trying and staying with this form of purchase."
According to the survey, UK shoppers are taking some basic precautions to protect themselves from fraud when shopping online. 68% of online shoppers have now signed up for the MasterCard SecureCode or Verified by Visa programmes, which provide password security for online credit card users. 57% use credit cards for the additional protection they offer, and 86% look for the secure padlock icon on a website before proceeding with a purchase.
This 1,000 person survey was conducted by market research firm GfK NOP LLC.
About the CyberSource UK Online Fraud Report
A widely referenced source of information about the state of fraud in the UK's online industry, the report this year examines data from more than 150 merchants and 1000 consumers. Now in its fifth annual edition, the report was compiled by respected market researchers Vanson Bourne and GfK NOP. Chief architect of the report is Dr Akif Khan, head of client and technical services for CyberSource Ltd.
To obtain a copy of the survey results - for journalists: please call Sarita Singh or Danielle Cook on +44 (0)1628 628080. For all others: please visit http://www.cybersource.co.uk/ukfraudreport
About CyberSource Ltd
CyberSource Ltd is the UK-based wholly-owned subsidiary of CyberSource Corporation (NASDAQ: CYBS), a leading provider of electronic payment and risk management solutions. CyberSource solutions enable electronic payment processing for web, call centre, and point-of-sale 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. Over 253,000 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, the United Kingdom, and other locations in the United States including Bellevue, Washington and American Fork, Utah. For more information, please visit the CyberSource Ltd web site at www.cybersource.co.uk or email uk@cybersource.com.
For more information:
Sarita Singh/Danielle Cook +44 (0)1628 628080 cybersource@noiseworks.com
Global Corporate Relations:
CyberSource Corporation650-432-2990
globalmedia@visa.com
