Security scandals stifle UK ebusiness

[InfoSec News <isn () C4I ORG>]

http://www.uk.internet.com/Article/100368

James Middleton
Thursday 03 August 2000

Lack of consumer confidence is stifling ebusiness uptake in the UK,
according to the National Consumer Council (NCC). Over-cautious
behaviour, resulting from scares such as the recent Barclays and
PowerGen security scandals, has reduced the potential of ecommerce to
bring greater competition and consumer choice, the NCC told
uk.internet.com

The council's report - Ecommerce and Consumer Protection - found that
unless problems with online security are addressed, fear of fraud
would continue to be a deterrent to online retail.

Despite the UK's support for dotcom enterprises and the government's
insistence that the UK will become the central hub for ecommerce,
online purchasing is still one of the least popular online activities,
said the report.

More than a quarter of UK households have Internet access and even
more users have access at work, but only three per cent of users are
regular Internet shoppers.

"The overwhelming impression we received is that consumers sense there
is a lack of respect for their rights and their safety online," said
the NCC. "Consumers are asked to pay for goods before they have seen
them, and to hand over personal and financial details upfront in an
environment that they hear all the time harbours shady characters."

According to the NCC, these fears are not irrational. "Banks and
ebusinesses have to get their act together and start providing secure
services," said NCC spokeswoman Janice Allen.

Visa recently surveyed 15 European banks and found that credit card
payments account for half of all complaints, and more than one in five
came from people billed for online transactions who had not even
shopped on the Internet.

The NCC also quoted the Office of Fair Trading, advising users: "In
most cases your shopping experience should be no more risky than
buying by mail order or on the phone. But you need to be aware of
possible dangers and should take certain precautions to make shopping
across the Internet safe. This is an area where consumer protection is
developing."

But Allen said if ecommerce is to take hold in the UK, government and
business needs to acknowledge and address the reality of consumer
scepticism.

"Currently the benefits of ebusiness are outweighed by unacceptable
levels of risk unless adequate measures for consumer protection and
redress are put in place, not just in the UK but across European
borders," she said.

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