Dark Reading is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Risk

2/7/2008
04:44 PM
George V. Hulme
George V. Hulme
Commentary
50%
50%

Online Shoppers Increasingly Fed Up With Data Breaches

For anyone who needs even more evidence that security is critical to keeping online shoppers happy: read on.

For anyone who needs even more evidence that security is critical to keeping online shoppers happy: read on.According to a report published today by research firm Gartner, consumers who have suffered through any of the all-too-many recent data breaches are more apt to alter their online payment behavior.

In fact, according to this report, shoppers -- who are already online at the merchant's Web site -- are more likely to pick up the phone to provide payment information. So much for convenience always trumping security.

This only goes to show that security matters. And that it's time for merchants to stop treating security as a necessary burden, and as the responsible cost of business it is, and as the competitive differentiator that it can be.

The findings in this report, titled U.S. Consumer Secure Payment Preferences Create Opportunities for Nonbanks, are based on an August 2007 survey of 4,500 online U.S. adults.

The study concludes that consumers prefer alternative payment types that earn banks less revenue, but which those consumers believe to be more secure. This comes despite banks' efforts to push debit card use that requires a signature -- which (not so coincidently) earns banks higher revenue.

For instance, when it comes to grocery shopping, consumers prefer entering a PIN (personal identification number) to pay for their groceries above all other types of signature-based card payments, wrote Avivah Litan, the Gartner analyst who conducted the study.

"Online businesses should therefore enhance their ability to offer secure automated phone payments," Litan said in a release. "For example, businesses can use a transaction number generated during the online shopping season to tie a purchase to an automated phone-based payment. For this customer base, online merchants should also promote alternative payments, such as PayPal and Bill Me Later, where interest in using them increases as age decreases," she continued.

The results from this survey echo the findings of a survey released earlier this month, which found that consumer privacy and security concerns, when it comes to online shopping, are on the rise.

This study, conducted by the University of Southern California's Center for the Digital Future, found that the level of concern about credit card information increased to 57%. And that, as of last year, only two-thirds of adult Internet users choose to buy anything online. That means more than 33% of all adult Internet users have decided to completely ignore the Internet retail channel.

This not only shows that good security pays, but that online shoppers will reward merchants that go the extra mile to provide a safer shopping environment, communicate those efforts to them, and also make available payment options that shoppers feel to be more secure.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
COVID-19: Latest Security News & Commentary
Dark Reading Staff 6/5/2020
How AI and Automation Can Help Bridge the Cybersecurity Talent Gap
Peter Barker, Chief Product Officer at ForgeRock,  6/1/2020
Cybersecurity Spending Hits 'Temporary Pause' Amid Pandemic
Kelly Jackson Higgins, Executive Editor at Dark Reading,  6/2/2020
Register for Dark Reading Newsletters
White Papers
Video
Cartoon Contest
Write a Caption, Win a Starbucks Card! Click Here
Latest Comment: What? IT said I needed virus protection!
Current Issue
How Cybersecurity Incident Response Programs Work (and Why Some Don't)
This Tech Digest takes a look at the vital role cybersecurity incident response (IR) plays in managing cyber-risk within organizations. Download the Tech Digest today to find out how well-planned IR programs can detect intrusions, contain breaches, and help an organization restore normal operations.
Flash Poll
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2020-13864
PUBLISHED: 2020-06-05
The Elementor Page Builder plugin before 2.9.9 for WordPress suffers from a stored XSS vulnerability. An author user can create posts that result in a stored XSS by using a crafted payload in custom links.
CVE-2020-13865
PUBLISHED: 2020-06-05
The Elementor Page Builder plugin before 2.9.9 for WordPress suffers from multiple stored XSS vulnerabilities. An author user can create posts that result in stored XSS vulnerabilities, by using a crafted link in the custom URL or by applying custom attributes.
CVE-2020-11696
PUBLISHED: 2020-06-05
In Combodo iTop a menu shortcut name can be exploited with a stored XSS payload. This is fixed in all iTop packages (community, essential, professional) in version 2.7.0 and iTop essential and iTop professional in version 2.6.4.
CVE-2020-11697
PUBLISHED: 2020-06-05
In Combodo iTop, dashboard ids can be exploited with a reflective XSS payload. This is fixed in all iTop packages (community, essential, professional) for version 2.7.0 and in iTop essential and iTop professional packages for version 2.6.4.
CVE-2020-13646
PUBLISHED: 2020-06-05
In the cheetah free wifi 5.1 driver file liebaonat.sys, local users are allowed to cause a denial of service (BSOD) or other unknown impact due to failure to verify the value of a specific IOCTL.