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Online sales at risk from fraud fears
Archived article dated Monday April 20th 2009
Nearly three quarters of UK consumers are fearful that the financial crisis puts them at greater risk of identity theft and related crimes such as credit card fraud. The fears may hit online sales for retailers.
The latest Unisys Security Index, a global bi-annual research study that provides insight into the changing security concerns of consumers, has found 72 per cent of UK citizens believe they are at greater risk as a result of the economic climate.According to the research study, 88 per cent of consumers are concerned about other people obtaining and using their credit card, debit card or bank account and another 88 per cent are concerned about others gaining unauthorised access to or misusing their personal information. These worries are supported by evidence from APACS, the payments industry association, which saw total fraud losses on UK debit and credit cards rise by 14 per cent to £609m last year.
"While past recessions have shown that crime levels rise when the economy falters, the current economic downturn is also forcing an evolution in criminal activity. As traditional crimes become less lucrative, criminals are learning new tricks to steal identities and exploit the growth in e-commerce and online banking. Technology advances play a critical role in detecting, investigating and preventing these types of crime," says Association of Chief Police Officers director of information Ian Readhead.
“It is very interesting to see that fraud fears have deepened as a result of the financial crisis,” says Unisys vice president of Global Security Solutions Neil Fisher. “The current economic climate is forcing many companies to cut costs but a real or perceived drop in spending on security can have a major impact on consumer confidence. Robust security procedures to protect against online fraud and ID theft are crucial to ensuring customer confidence, particularly with regards to online shopping and banking. Now is not the time for UK plc to take its eye off the ball when it comes to keeping customers safe and protected.”
The survey also show a drop in consumer confidence, with 58 per cent of UK citizens concerned about their ability to meet essential financial obligations compared with only 46 per cent a year ago.
Concerns regarding financial security now exceed 2007 levels - when the nation witnessed a run on Northern Rock. In the UK, the Unisys Security Index has jumped 20 per cent, from 125 a year ago to 150. This trend is echoed in the US, Germany and Spain.
Reports that fraudsters are increasingly moving online, in addition to well publicised security breaches, may have also helped push up the Unisys Security Index for Internet security concerns from 105 a year ago to 121 in the UK, its highest level since the Index began in 2007. According to the survey, 69 per cent are now concerned about computer security and 65 per cent are worried about their safety and security when shopping or banking online.
Tagged as: online | fraud | identity theft | ACPO | Unisys
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