Shoppers don't feel safe, demand to be compensated for security breaches

Online shopping may see the biggest rise this year, but many consumers still do not feel safe, and many are staying away from retail websites as a result.

According to the 'Trust in the Internet' survey, nearly 77 percent of respondents do not feel very safe when shopping online and nearly a quarter are conducting fewer transactions online due to security concerns.

The survey, which questioned 10,000 people in the U.S. and U.K., also found that 59 percent of people are uncomfortable sharing sensitive financial and personal information when they shop and interact with organizations online, and 64 percent of consumers believe that they are likely to be a victim of a security breach within the next 12 months.

"The convenience of online shopping is a significant pull for many consumers and spend around peak retail periods has increased year-on-year," said Rob Cotton, CEO of NCC Group "However, demand on retailers to address security is reaching a critical point. The recent spate of high profile data breaches has clearly had an impact on online trust, and consumers are now placing responsibility squarely with retailers to tackle this issue. Some 84 percent of consumers believe companies should compensate customers financially for their loss if they experience a breach."

"Businesses now need to step up and make securing their customers' data a top priority. The consequences of not doing so threaten the integrity and performance of businesses and the Internet as a whole."   

The great majority of shoppers feel vulnerable to hackers and just 23 percent say they feel "very secure" while shopping online. Only 8 percent are comfortable sharing financial details and completing financial transactions online while 62 percent say they are more concerned about online security now than they have ever been.

One-in-three consumers expect to be the victim of a breach "any minute," and 64 percent believe they will be the victim of a breach within the next 12 months.

Retailers may be contributing to this perception, as 56 percent of consumers said that in order to complete online transactions, they often must share information that they would normally not feel comfortable sharing online. Sixty-eight percent of consumers say they would be more likely to do business with companies within an online community made up of secure/safe websites, where only verified brands operate.

For more:
-See this NCC Group press release

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