Study Reveals Only a Quarter of Consumers Trust Facebook Storefronts to Prevent Fraud
Posted December 22, 2011
Results From a Joint Study by ThreatMetrix and The Ponemon Institute Indicates Consumers Feel Google is More Effective Than Facebook at Protecting Them From Online Criminals
SAN JOSE, CA – December 22, 2011 – ThreatMetrix™,a leading provider of integrated cybersecurity solutions, today announced results of a joint study with The Ponemon Institute, “Mobile Payments & Online Shopping Survey of U.S. Consumers.” The survey, which looked at U.S. consumers who self-reported they are active users of the Internet, revealed that 53% of consumers do not believe Facebook storefronts are committed to protecting them against fraudsters. A quarter of respondents (23%) were unsure about Facebook’s fraud prevention tactics.
While Google came out ahead of Facebook in terms of fraud prevention intentions, findings also showed more than half of consumers feel Google is more effective than Facebook at actually keeping them safe from online criminals. In fact, Google recently announced it is aiming to enhance its online retailing strategy, which some say will challenge Amazon.com. Google would partner with major retailers and shippers to enable consumers to shop for goods online and receive orders within a day for a low fee.
“If Google moves forward with this service, it introduces another set of fraud prevention concerns,” said Alisdair Faulkner, chief products officer, ThreatMetrix. “With online shopping becoming more convenient and affordable for consumers, fraudsters will be even more eager to take advantage of underprepared retailers.”
Consumers Have Yet to Shop Via Social Networks
Survey results indicate that consumers have yet to really adopt online shopping habits through social networks. Only 32% of consumers surveyed have browsed a company’s Facebook page and then bought something on the company’s website. In turn, only one in five consumers indicated that they have purchased something directly within a Facebook storefront.
“Consumers have yet to adopt social shopping habits because it’s largely unavailable, with many retailers still trying to figure out their strategy in offering their products via social outlets like Facebook,” said Faulkner. “And with the current consumer perception that Facebook isn’t doing enough to protect against security breaches, Facebook storefronts still face hurdles in gaining widespread adoption.”
The spam attack on Facebook accounts this past November did little to comfort consumers about security and fraud on the site. According to Faulkner, the security breach sparked concerns about the site’s vulnerability to hackers even though the attack didn’t compromise users’ data.
“With new account registration, you have fraudsters who will sign up with social networking sites like Facebook in order to gain access to current user information,” added Faulkner. “Having a comprehensive fraud prevention strategy is vital for social networks and strategic to their operations, especially if a user experiences spam directly within the site.”
ThreatMetrix®, The Digital Identity Company®, is the market-leading cloud solution for authenticating digital personas and transactions on the Internet. Verifying more than 20 billion annual transactions supporting 30,000 websites and 4,000 customers globally through the ThreatMetrix Digital Identity Network®, ThreatMetrix secures businesses and end users against account takeover, payment fraud and fraudulent account registrations resulting from malware and data breaches. Key benefits include an improved customer experience, reduced friction, revenue gain and lower fraud and operational costs. The ThreatMetrix solution is deployed across a variety of industries, including financial services, e-commerce, payments and lending, media, government and insurance.