According to a new report, 87% of on-line fraud committed in 2000
was attributed to on-line auction sites. The report also claims
that 34% of internet users have been victims of on-line fraud.
The ePrivacy & Security Report released yesterday by
eMarketer, a New York-based provider of internet statistics,
suggests that the ten most common subjects of on-line fraud include
internet access services, computer equipment services, work-at-home
web sites and sales of general merchandise. It also assessed the
impact of privacy and security, dealing with personal information
piracy, credit card security, hacking into corporate networks,
denial-of-service attacks and computer viruses.
"For most internet users, the protection of personal information
is a real and valid concern," said Rob Janes, an Analyst at
eMarketer. "Offerings of free services and promises of wealth lure
participants into binding contracts or unbelievably great deals
enticing consumers to buy products that never arrive or don't meet
the quality promised."
"Given that 16 million unique users may visit eBay in a given
month, it's no surprise that auctions consistently rank as the most
fraud-prone online activity," said Janes.
Key findings of the report
- At year-end 2000, the FBI's Computer Emergency Response Team
(CERT) registered 17,672 incidents of hacking - up from less than
10,000 in 1999.
- According to the two largest credit card companies in the
world, VISA and MasterCard, in 1999, 22 million fraudulent credit
card transactions occurred either on-line or off-line of an
estimated total of 25 billion transactions combined.
- Less than 66% of internet users have not been a victim of
online fraud, while more than 34% has been victim of a
privacy/security breach.
- Per victim, the price of fraud is around $600, which is more
than most research estimates of average on-line retail
spending.
- Children are, by far, the most willing to share personal
information about themselves in exchange for goods and
services.
- The majority of internet users who refuse to buy on-line are
afraid of hidden costs, leery of fraud and question companies'
ethics.
- The "Love Bug," ExploreZip," and "Melissa" viruses are the most
widely spread and damaging viruses to date. So far, the "Love Bug"
virus has caused the most financial loss, exceeding the "Melissa"
virus by upwards of $4 billion.
