Sunday, November 12, 2000
Phone, Mail Order Top Internet as Choice for Purchasers;
Fear of Internet Fraud Major Reason, Survey Shows
Almost three in five Internet users express concern that
their credit card number could be stolen when making
purchases online. Additionally, almost a third are concerned
about personal information being obtained from their
credit card.
These are just two of the key findings of a new survey
sponsored by Merchant Online, a provider of secure real-time
transaction services for E-tailers and consumers. Research
was conducted in mid-September for Merchant Online by
Bruskin Research. The survey asked consumers with Internet
access about their attitudes towards making purchases
online and the new Electronic Signature Law.
When asked which method they feel is most secure for
credit card purchases, respondents overwhelmingly prefer
the phone over the Internet by a three-to-one margin
(61% vs. 20%), and prefer mail order over the Internet
almost two-to--one (55% vs. 28%). The phone was also
preferred by a significant margin over mail order (52%
vs. 34%).
"When it comes to purchasing goods and services
on the Internet, people are genuinely concerned about
the security and privacy of their credit card and personal
information," says Tarek Kirschen, CEO of Merchant
Online.
"Although the E-signature Law will open up a convenient
new way for people to engage in legally binding transactions,
the survey shows that many people need to be educated
about the Law and the methods available to protect their
personal and credit card information when making purchases
and completing legal transactions online."
Other key survey findings:
When people with Internet access were asked their reasons
for not buying products or services online, more than
a third (39%) indicated they were afraid of hidden costs,
32% were afraid the deal was fraudulent and 21% thought
the company was unethical.
A vast majority (84%) indicate they use credit cards
to make purchases, including 68% who made a credit card
purchase over the phone, 56% who made a credit card purchase
by mail order and the fewest - 51% -- who made a credit
card purchase online.
One in five (22%) respondents has had their credit card
information used fraudulently.
When read a description of the new Electronic Signature
Law, less than half - 43% - of respondents were familiar
with it, while 55% were hearing about it for the first
time.
68% indicate the new e-signature law will not impact
their online buying habits, 20% say they are less likely
to buy and 9% say they are more likely to buy.
Only two in five people (40%) indicate they are comfortable
with the idea that their digital signature is now legally
binding, while 55% are uncomfortable.
When asked about online security methods that would make
them feel safer, 46% chose a hardware device that encrypts
data and information before it enters a computer and
36% chose an encrypted certificate that permanently resides
on the computer.
The survey was conducted for Merchant Online by Bruskin
Research among a nationally representative sample of
1,006 adults, of which 413 reported having Internet access
at home. Interviews were conducted via telephone during
September 14-17, 2000. The sample error among all respondents
answering these questions is +/- 4.8 percentage points.
Ruling: Parents Have Right to See Student Website List
According to the New York Times:
"In an opinion sure to heighten the tension between
some parents and school systems over the Internet's role
in publicly financed education, a New Hampshire judge
has decided that a parent is entitled to see a list of
the Internet sites or addresses visited by computer users
at local schools.
Unless overturned on appeal, the ruling by Judge Gillian
L. Abramson of Rockingham Country Superior Court means
that James M. Knight of Exeter, N.H., who brought the
lawsuit last summer, may review a copy of the 'Internet
history log' files from computers maintained by two local
school districts..."
Click
here for the full story.
