Online Privacy and Security: The Fear Factor

A New eMarketer Report Highlights the Financial Impact on Online Retail

eMarketer today releases an in-depth look at online privacy, security and the impact that online theft and fraud have on online retail.

"Online Privacy and Security: The Fear Factor" examines the proliferation of threats to Internet consumer privacy and security, and their adverse impact on online business and e-retail. Consumer passions continue to be aroused by alarming news reports of online scams used to steal credit card numbers over the Internet, or the latest information breach at large corporations. And online merchants are feeling the effects.

eMarketer estimates that over a third of US Internet users, ages 14 and up, do not buy online. Concerns over the security and privacy of personal information keep many from becoming online consumers.

"It's a highly charged issue," said Jeffrey Grau, eMarketer senior analyst and author of the report. "Online shoppers are still wary of online privacy and security, and clearly it affects which Web merchants they trust with their business, and the strategies they employ to minimize online shopping risks."

The threat of cyber crime is altering online shopping behavior in other ways. One result is that small e-tailers suffer, as consumers switch their business to recognized retailers. Savvy marketers will be able to take advantage of this situation, Mr. Grau says. "Web retailers who know how to build consumer confidence can create a competitive advantage."

Some consumers' fears are based on misconceptions, according to the report. Mr. Grau notes that while it's true that credit card fraud occurs more online than offline, research also shows that less than 10% of identity thefts, such as stolen credit card numbers, occur over the Internet.

eMarketer's Online Privacy and Security report answers these key questions:

--  What is the size and nature of the online security threat?
--  How are privacy and security concerns constraining and altering online
    shopping?
--  What impact are e-tailer responses having on consumer trust in online
    shopping?
--  Which online segments are most at risk?
--  Will the threats abate or get worse?
--  And many more...
    

Click to eMarketer.com for more information on eMarketer's Online Privacy & Security report.

About eMarketer

eMarketer is "the First Place to Look" for market research information related to e-business, online marketing and emerging technologies. eMarketer aggregates and analyzes e-business research from over 1,700 sources and brings it together in analyst reports and the "eStat Database" -- the most comprehensive compilation of up-to-date e-business and online marketing statistics in the world. For more information, visit www.emarketer.com

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