Report: Consumers Expect E-Commerce Merchants to Take Extra Authentication Steps
May 2, 2011
Eighty-five percent of consumers are worried and dissatisfied with the level of protection online businesses are providing to stop fraudsters today according to the results of a study by ThreatMetrix and the Ponemon Institute. Of those who responded to the survey, 42 percent said they have been the victim of online fraud. Of those, 80 percent said they did not report the crime and only 19 percent said they reported it only to the online business directly. “A lot of fraudulent activity goes unreported today, making it difficult for online businesses to fully understand the prominence and seriousness of the problem,” said Reed Taussig, president and CEO of ThreatMetrix. “With a rise in online transactions and activities across devices, more needs to be done to educate online merchants, banks, social outlets and other businesses on how to decrease fraudulent activity.” Nearly three in four respondents would allow a trusted online business to place an invisible cookie on their computer to automatically authenticate them, and 82 percent indicated that they would expect an online business to offer alternative authentication methods if they were unable to match the consumer’s digital fingerprint to their security system.