UK Consumers Wary of Online Security

UK consumers’ lack of confidence in the strength of Internet security is hindering the expansion of online shopping, according to research commissioned by the National Consumer Council.

The research found that key consumer concerns center on releasing credit card and personal details online, lack of opportunity to check goods before paying and the risk of fraudulent suppliers. These fears are compounded by widespread ignorance about legal rights and redress for consumers when things go wrong.

“It is especially worrying that Internet users are more — not less — likely to harbor doubts about shopping online,” said Anna Bradley, National Consumer Council Director. “For instance, almost four out of ten adults see the need to release credit card details as a major disadvantage of Internet shopping. Among Internet users, more than half feel the same way. This heightened awareness is evident across the board — from delivery problems and not being able to touch goods to releasing personal information. Unless the total online shopping environment, sites and payment mechanisms, is made more secure, some consumers will never have the confidence to explore the opportunities.”

To overcome consumer barriers to the expansion of e-commerce identified by the research, the National Consumer Council is calling for:

• Secure payment mechanisms that provide a safety net when things go wrong
• Beefing up existing protection for credit card transactions that go wrong
• High standards of customer service from web retailers — from Web site quality to order information, final delivery and ‘Rolls-Royce’ redress systems — that will foster greater consumer confidence
• A government-backed publicity campaign to promote knowledge and awareness of consumer rights, how to get redress and where to get information and advice.

“Our research shows that consumers try to minimize the risks by shopping from online channels run by established, well-known brands and retailers,” Bradley said. “Twenty-eight percent of Internet users say they would look for a recognized brand name, while 22 percent would feel safer shopping on the site of a High Street retailer.”

The research, which was based on face-to-face interviews among almost 2,000 adults across Great Britain, and 10 in-depth discussion groups, also reveals that consumers are confused about their online shopping rights. Among Internet users, 44 percent believe they have less legal protection when shopping on the Web than in the High Street. Their coping strategy is to pay by credit card, a compromise between the risks of shopping online and the extra protection the card provides. But only half the adult population has a credit card. That leaves the other half without an easy way to pay that comes with built-in redress.

Other findings of the survey include:

• 26 percent of UK adults have access to the Internet either at home or at work
• Only 3 percent of GB adults say they regularly shop online
• 85 percent of GB adults consider the High Street to be the safest place to shop; 35 percent think that the Internet is the riskiest
• 55 percent of Internet users think online shopping is the most risky
• 54 percent of Internet users express concern at releasing credit card details online
• Among Internet users, 51 percent say being unable to physically inspect the goods before paying is a main disadvantage
• Among Internet users, 30 percent believed that there was a risk from fraudulent suppliers.