How safe are you when you shop online?
June 4, 2008
Britain has become a nation of consumers that like nothing more than total ease and convenience, and this has been reflected in the shopping habits of British consumers over recent years. Many people now enjoy the ease and convenience of making purchases online, buying everything from the weekly groceries to one off gifts, holidays, gadgets, clothes, cosmetics, entertainment, and more. However, whilst online shopping certainly can save us time and hassle, it is vital for consumers to consider how safe they are when they shop online with their credit and debit cards.
When you shop online you are conducting CNP transactions, which stands for Card Not Present transactions. As the name suggests this is where you pay for an item using your credit or debit card but the card – and the person – is not actually present with the retailer, with the whole transactions being completed and paid for virtually through the use of the Internet. It is important to remember that the level of fraud relating to CNP transactions is high, and therefore those that use their cards online and do not take precautions may be putting themselves at increased risk of becoming a victim of fraud.
The Abbey recently carried out some research that indicated that many Brits are more concerned about convenience and ease than about time consuming security procedures that could protect them from becoming victims of CNP fraud. A number of financial institutions, including major banks such as Lloyds TSB and Barclays, have introduced security devices for their customers, which are used to generate a random code or number that can be used when making CNP transactions. However, many consumers appear to be finding these troublesome and time consuming.
The recent survey by Abbey showed that whilst close to 70% of consumers like the ease and convenience of shopping online, only 32% were happy about using the type of code generating security devices that banks have been bringing out over recent months. The thought of having to answer additional security questions online to provide increased protection was even more unpopular, with only 30.5% of consumers happy to answer additional security questions.
The survey showed that around 40% of consumers thought that banks needed to monitor online transactions more carefully in order to try and cut back on CNP fraud. The results of the recent study also showed that those in the younger age groups seemed more concerned about CNP fraud than older people, with those aged under 25 years expressing most concern over this issue. Any consumer that tends to make purchases online are advised to bear in mind the dangers of CNP fraud, and to take the time to protect themselves using whatever devices of procedures that are offered. Whilst these procedures may make online purchasing a little more time consuming they could save shoppers a lot of money, time, and hassle in the long run.
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