Hidden costs of security flaws

Madrid, March 3, 2005 - A survey carried out by Forrester Research, and which is reported in CNET News.com, reveals that consumers are losing confidence in the security of online transactions. What´s more, companies are unaware of all the consequences this can have.

The report demonstrates that some security problems, such as phishing, are altering users´ online behavior. To be more specific, 92 percent of the US families interviewed by Forrester last year said that they were reluctant to share personal information online because they feel that the risks outweigh the benefits. Sixty one percent of those survey have curbed their willingness to use their credit card online and 50 percent said that they did not trust financial institutions for fear that they would use their financial information incorrectly. However, only 36% indicated that they were reducing the number of products and services purchased through the Internet.

According Jonathan Penn, a security analyst at Forrester, companies are not aware that there are aspects (security flaws in their websites, disclosure of confidential user data or identity theft) that can generate secondary costs, such as call to support centers or additional investment in marketing to repair damaged reputation. The Forrester analyst also considers hacker attacks, identity theft and other security problems affect the confidence of consumers whether they have been online for one year or five.

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by Panda Software

2005-03-04 08:46

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