April 22 2007

Online fraud is a question of benefits v risks

UK consumers are not as risk-averse when it comes to using online services as previously thought, according to recent research conducted by BT. Despite daily warnings about security threats and cyber-criminals, people are willing to take risks online, as long as they feel informed, and it is clear how consequences will be addressed.

According to the findings from the Trustguide report (a collaborative research project by BT with support from the DTI), people use specific online services not because they trust them, but because they believe the benefits outweigh the risks. Government and private industry must therefore take responsibility for educating and reassuring the public that safeguards are in place, if they are to succeed with e-government and e-commerce initiatives.

Andy Phippen, lecturer in socio-technical studies a the University of Plymouth and co-author, said: "While legislative measures have their role to play in helping to protect consumers, it's not enough. Education and assurance are the foundation stones upon which trust is built and understanding the 'risk-trust-privacy-responsibility-restitution' equation is fundamental to increasing confident use of online services and emerging technologies. The change over will not happen over night, but addressing all of these factors will help to enhance overall cyber trust and lead to the acceptance of an ICT-enabled future."

A full copy of the report can be downloaded from the Trustguide site (pdf).

Emma Herrod