Chilling Of Online Holiday Shopping Due To Identity & Credit Card Theft.

According to a new survey, about six in ten consumers (58%) say they may reduce their online shopping during the holiday season this year because of identity theft and other privacy concerns, up from 49 percent who expressed this view a year
ago. The second annual online shopping study conducted by TNS, the world’s second largest marketing information company, and TRUSTe, the online privacy leader, indicates that almost half (46%) of Internet shoppers say they buy only from e-tailers that have a privacy statement or seal.

“The results show consumers have been paying attention to the onslaught of spyware, phishing, identity theft and credit card fraud,” said Fran Maier, executive director of TRUSTe. “During this holiday season, consumers will be checking which Web sites are naughty and which are nice by looking for positive signs of privacy, security and safety like privacy seals.”

Half of the 1,071 people surveyed this year plan to limit their holiday online shopping to some extent. Eight percent are so concerned that they do not plan to shop online at all, up two percentage points over last year.

The leading reasons cited by those reducing or halting online shopping include:

1. Identity theft concerns (mentioned by 52% in 2004, up from 35% in 2003)
2. Fear of credit card theft (44% in 2004, up from 30% last year)
3. Spyware potentially being downloaded onto one’s computer (44% in 2004)
4. Receiving spam after purchasing from a Web site (42% in 2004, up from 38% in 2003)

“There is no doubt that consumers are far more wary of these online threats as we approach the shopping season this year,” said David Stark, privacy officer of TNS. “Retailers today have to give consumers a reason to trust them with their personal information. A meaningful privacy statement or a privacy seal is an essential starting point.”

Cases of identity theft, credit card fraud and specifically phishing, in which impostors lure victims into submitting their personal details, have been on the rise. Consumers are receiving fraudulent emails from what appear to be major banks and e-tailers.

Consumers were also questioned about their comfort level when making online purchases from brand names vs. smaller e-tailers. One-third say they are less willing to buy from smaller online retailers than larger well-known companies in part because of concerns that smaller e-tailers are more likely to misuse shoppers’ personal information.

For more information at http://www.truste.org