Identity theft scares online consumers

Greater security through two-factor authentication would be welcomed

Fewer people in the UK are making online transactions because they are worried about identity theft, new research has found.

According to a survey carried out by Infosurv, 13 per cent of e-banking customers and 12 per cent of ecommerce users said they had stopped trading online because of security concerns.

Bill Conner, CEO of outsourcing company Entrust, which funded the study, said: "Identity theft is having an impact global ecommerce, and what once might have been viewed as onerous is now seen as essential. Fifty-two per cent of UK customers would consider online identity security in their bank selection process - however 85 per cent would not be willing to incur additional expense as a consequence."

At the same time, 66 per cent of UK respondents said they would be more likely to move money over the web if security was improved. The research also found 79 per cent of consumers in Europe and the UK would be willing to use two-factor authentication for banking and shopping.

Conner added: "It is now perfectly feasible for the international banking community to take steps to make online banking and ecommerce more secure and affordable."

The research consisted of surveys conducted with 1,500 people.