Fear of Online Credit Card Fraud Outweighs Statistics

Share this content:
About 81 percent of consumers cited interception of credit card data as their primary concern about shopping online, according to a Jupiter Media Metrix survey of 2,473 U.S. consumers released this week.


Jupiter claims this fear is based more on media hype than on a real security risk.


Visa reported that online credit card fraud rates are $0.25 to $0.28 per $100 spent vs. $0.07 for all transactions. The FBI recently reported that it classified 26 percent of all U.S. online transaction complaints as fraud. Jupiter claims that media sources use more dramatic numbers from attitudinal surveys when publishing articles and reports on the subject, which tends to alarm consumers.


Jupiter outlined a three-tier classification system for financial institutions to combat "inaccurate publicity" regarding credit card fraud. The system is divided into:


· Threat: when experts have discovered a potential risk to payment records, but no consumers have reported any specific fraud.


· Breach: when security has been compromised, allowing actual unauthorized access to payment records, yet no consumers have reported a known fraud.


· Fraud: when security is compromised, unauthorized access to private records occurs, and authorities document cases of fraud.


Other factors listed by consumers that have deterred them from buying online include the possibility of credit card data being sold (77 percent), junk mail (63 percent), misuse of credit card data (59 percent) and a preference for anonymous payment (22 percent).


Loading links....
close

Next Article in Multichannel Marketing

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here