Jiri’s Notepad

Summary of a Gartner paper, via WSJ as summarised by Kim Cameron:

In an article called “Internet Scams, Breaches Drive Buyers Off the Web, Survey Finds” (subscription required), The Wall Street Journal’s Riva Richmond reports on a major study which provides significant quantitative support for the kinds of concerns I have been expressing.

The study, conducted by Gartner and released on June 23rd, was based on a survey of an amazing 5000 online consumers.

More than 42% of online shoppers report cutting back on their activity in light of their growing awareness of phishing, pharming and “identity catastrophes” involving “loss” and “release” (not to mention “theft”) of Identity Information.

And 28% of those using Internet banking are now cutting back as well.

Gartner predicts growth in eCommerce and online financial services will be one to three percentage points lower over the next three years than if electronic information were better safeguarded.

The article quotes Gartner analyst Avivah Litan as saying, “These attacks and disclosures are taking a steep toll on consumer confidence. The only place [consumers] can show their concern is in their online behavior.” I think that is a very good way of putting it.

Those who still don’t agree that an objective requirement of the identity metasystem is that the user have control and be asked for consent prior to disclosure should really ponder these words. If the system doesn’t give the user a sense of control, the user will take control. When cornered and disenfranchised, the way to take control is to opt out.

Gartner estimates that consumers have lost almost a billion dollars to Internet scams during the twelve months ending in May.

According the story, 77% of concerned online-banking customers said they are using online banking services less frequently. More than 4% of those Internet banking customers concerned with fraud have abandoned online banking altogether.

Amongst concerned online shoppers:

* More cautious about where they purchase goods on line: 73%
* More careful entering sensitive data on sites: 62%
* Buying fewer things online than before: 33%