Security News > 2000 > August > Security scandals stifle UK ebusiness
http://www.uk.internet.com/Article/100368 James Middleton Thursday 03 August 2000 Lack of consumer confidence is stifling ebusiness uptake in the UK, according to the National Consumer Council (NCC). Over-cautious behaviour, resulting from scares such as the recent Barclays and PowerGen security scandals, has reduced the potential of ecommerce to bring greater competition and consumer choice, the NCC told uk.internet.com The council's report - Ecommerce and Consumer Protection - found that unless problems with online security are addressed, fear of fraud would continue to be a deterrent to online retail. Despite the UK's support for dotcom enterprises and the government's insistence that the UK will become the central hub for ecommerce, online purchasing is still one of the least popular online activities, said the report. More than a quarter of UK households have Internet access and even more users have access at work, but only three per cent of users are regular Internet shoppers. "The overwhelming impression we received is that consumers sense there is a lack of respect for their rights and their safety online," said the NCC. "Consumers are asked to pay for goods before they have seen them, and to hand over personal and financial details upfront in an environment that they hear all the time harbours shady characters." According to the NCC, these fears are not irrational. "Banks and ebusinesses have to get their act together and start providing secure services," said NCC spokeswoman Janice Allen. Visa recently surveyed 15 European banks and found that credit card payments account for half of all complaints, and more than one in five came from people billed for online transactions who had not even shopped on the Internet. The NCC also quoted the Office of Fair Trading, advising users: "In most cases your shopping experience should be no more risky than buying by mail order or on the phone. But you need to be aware of possible dangers and should take certain precautions to make shopping across the Internet safe. This is an area where consumer protection is developing." But Allen said if ecommerce is to take hold in the UK, government and business needs to acknowledge and address the reality of consumer scepticism. "Currently the benefits of ebusiness are outweighed by unacceptable levels of risk unless adequate measures for consumer protection and redress are put in place, not just in the UK but across European borders," she said. ISN is hosted by SecurityFocus.com --- To unsubscribe email LISTSERV () SecurityFocus com with a message body of "SIGNOFF ISN".