Report: Consumers’ Disregard for Security Can Hurt Online Merchants, Banks

Oct. 5, 2015

Report: Consumers’ Disregard for Security Can Hurt Online Merchants, Banks Despite the best efforts of merchants and payment providers to give consumers tools to protect themselves online, few are actually doing so, according to a new report from Kaspersky Lab. The cybersecurity company conducted an online test in which only half of users were able to recognize that an online banking site’s name was misspelled before entering account details. An identical 51 percent said they verify the authenticity of a Website before they enter financial details to make an online payment, leaving just less than half not using even the most rudimentary form of protection. Not only are these consumers exposing themselves to identity theft and fraud, said Kaspersky, but their actions have ramifications for merchants and banks also.

“These figures reinforce what has long been observed—many users still are not only endangering themselves and their money but also the banking and payment system businesses they use,” said Ross Hogan, global head of the fraud prevention division at Kaspersky Lab. “Dealing with incidents, even if they are caused by inexperienced users, can consume considerable resources and have a negative impact on a company’s reputation. User confidence in companies doing everything possible to protect them from online fraud imposes a great deal of responsibility. That means the use of specialized security against online theft is becoming a necessity.”