Thursday, August 9, 2001

86 Percent of Online Adults Concerned About Security

A new report from GartnerG2, a research service of Gartner, Inc., advises companies to use and promote superior privacy and security protections in order to capture the yet untapped consumer base of Web shoppers with low confidence in the privacy and security of Web transactions.

The report, titled "Privacy and Security: The Hidden Growth Strategy," finds that 86 percent of online American adults are very concerned about the security of bank and brokerage account numbers when doing online transactions. Almost as many, 83 percent, expressed the same concerns about the security of their Social Security and credit card numbers. Additionally, 70 percent are very concerned about the security of their personal information, including their income and assets.

The report also indicates that approximately 60 percent of online adults say security and privacy concerns stop them from doing business on the Web. In addition, more than 50 percent of those who buy on the Web say they'll enter their information, but admit they are not comfortable about it.

"Even though many consumers say they're uncomfortable sharing information on the Web, for the right combination of convenience or reward, many go ahead and share anyway," said GartnerG2 research analyst Laura Behrens.

High-profile hacking incidents, as well as a general lack of familiarity about methods to ensure security, are key factors in low consumer confidence in the security of online transactions. Only about one-half of Americans who use the Internet also use it to buy goods and services. According to Gartner, online marketers may bring part of the remaining half into the online channel by promoting their privacy and security features just as much as the convenience of Web transactions.

"Companies must demonstrate their security and privacy concerns to users by prominently posting their privacy policies and third-party audit results," said Behrens. "In addition to protecting customers' privacy and the security of their information, Web marketers must promote the fact that they do so."

The report states that demonstrated vigilance in protecting consumers' information will become a competitive requirement on the Web. According to GartnerG2, until industry standards for authentication and secure payment methods emerge with higher awareness, consumers will continue to be wary of Web transactions.

"Our studies found that 20 percent of adults who say they have placed an order on the Internet in the past three months also say they won't put personal information such as their name and address on the Web," continued Behrens. "Not all these people have faulty memories -- some have become so comfortable at certain sites that they no longer consider doing business there as requiring an exchange of personal information."

The report is based on results from two GartnerG2 consumer surveys of more than 7,000 online adults 18 years and older in the United States.