Cyber Security Institute

Monday, November 27, 2006

Gartner: $2 Billion in E-Commerce Sales Lost Because of Security Fears

In 2006 alone, retailers lost almost $2 billion because of consumer security fears, with about one-half of those losses ($913 million) coming from people who avoided sites that seemed to be less secure and the rest (about $1 billion) came from consumers who were too afraid to conduct e-commerce business at all, according to a Gartner survey of 5,000 U.S. adults in August that the research firm published on Nov. 27.

The report is startling in the sense that it confirms what many retailers have long feared.  It’s a frustrating problem because so many legitimate security defenses are invisible and the most visible security features—-such as displaying a sign noting security standards compliance—-do little to truly secure the site.  Also, credit card purchases are overwhelmingly protected against theft, so the true risk for consumers is quite small.

“For 90 percent of people, if they want that refrigerator, they are going to buy it,” said Avivah Litan, a Gartner analyst specializing in security who is also an author of the report.  More than 85 percent of the consumers in the Gartner survey said they delete unexpected e-mail without opening it.

http://www.eweek.com/article2/0%2C1895%2C2063979%2C00.asp?kc=EWEWEMNL112706EP21B