Security Impediments the Use of Electronic Transactions

European consumers show wary regarding online shopping and online transactions, despite the fact that, in recent years, both specific transaction categories indicate significant growth. Therefore according to research by Kaspersky Lab and B2B International, 44% of European Internet users feel vulnerable during online shopping and online transactions. Meanwhile, 38%, users stated they would use electronic payment systems frequently if they felt protected by digital scams. Given these attitudes, it seems that there is a lack of trust towards the security measures taken by providers of electronic payment.

Research shows that 62% of Europeans are afraid of financial fraud on the Internet, while showing many cases where users do not feel comfortable. For example, 34% of Europeans who make online payments feel that even the official mobile application of financial companies needs more protection measures to provide real security. Moreover, 44% said they stopped a process electronic payment in the middle, as they doubted the safety of the transaction.

The level of protection against digital fraud is an important criterion for users when choosing an online store or a financial service. 61% of Europeans surveyed, said that they would prefer companies that offer additional security measures to protect their financial data. Furthermore, 71% expect from banks, electronic payment systems and electronic stores to protect their computers and portable consumer devices by financial fraud.

At the same time, many users know they need to implement their own security measures, in addition to measures that provide payment service providers. While 22% of users gives full responsibility for the security of financial transactions to banks and 14% believe that the users themselves are solely responsible for their protection, the majority (59%) of respondents believe that the economic data should be the responsibility of both. This demonstrates that users are willing to accept new tools by financial institutions that will help them deal with online fraud, as they understand their own share of responsibility.

According to analysts at Kaspersky, this reluctance hinders the development of the electronics transactions industry. To encourage the active use of electronic payments, banks, online stores and e-payment systems are required to assure users that it is safe towards digital criminals. A solution for the payment service providers is to provide additional levels of protection against financial fraud attempts, which are specially designed for safety of online or mobile banking and payments. The presence of this additional protection, reassures users directly, giving them confidence that their money are safe.