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.