Identity theft and online fraud are likely to harm e-business prospects in the long run, warn experts, who are asking legislators to strengthen laws against cyber crime.Susan Sproule and Norm Archer of McMaster University, Ontario, who conducted the study, say identity theft and fraud are an increasing concern for consumers who interact with online businesses routinely.
"These findings are (also) of concern to businesses and governments," Sproule says, "since, if consumers are wary to shop online, the productivity benefits of e-business will not be realized."
Nearly 10 percent people have ceased online banking, or have kept it to a minimum because of fraud worries. (Look for that number to grow.) Surveys show that 41% of US consumers will not bank online due to security fears. Recent events have resulted in some very bad publicity exposing the lack of security in the online banking industry.
Three recent examples:
- FBI Director Robert S. Mueller has recently "sworn off" online banking after coming very close to becoming a phishing victim.
- Security experts warn that the only way to protect yourself against the exponentially growing threat of online banking malware is to use a separate machine for online banking than the one used for browsing.
- Two security experts warn consumers not to use Windows for online banking, yet 93% of all Internet users have Windows.
The study is slated for publication in the International Journal of Business Governance and Ethics.
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