April 18, 2007

NEWS: Flagging Sales Due to ID Theft Fears?

Internet merchants and those doing their marketing through e-mail are reporting faltering sales. And it’s not just in their imagination. According to a recent study by research firm Zogby, increased fears about privacy and security – namely, the risk of identity theft – are keeping consumers from buying online.

Zogby’s poll indicated that a whopping 90% of respondents reported fears about having their identities stolen as a result of internet transactions. Specifically, consumers are nervous about what could be done with their credit card and/or personal information – a full third report distrusting credit card companies and/or online merchants to properly safeguard their information. Those involved in internet marketing are pretty much already unanimously using secure servers and offering airtight privacy policies in an attempt to assuage these fears, but all evidence is pointing to the fact that it is just not enough in the eyes of would-be shoppers.

Some suggestions taken up by retailers recently have to do mostly with building trust and confidence with consumers. Companies that have been known to sell e-mail lists or contact information of customers are seeing trends of retaliatory blackballing, so discontinuing that practice is a good idea. It seems that e-mail authentication is another relatively simple step merchants can take to really make an impact. Most importantly, consumers are indicating that they want to feel that the businesses with which they transact are willing to put consumer security first.


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