News from the Wire

Few consumers trust Facebook storefronts to prevent fraud

Tuesday, December 27, 2011 — 12:25:33 (EST)

San Jose, Calif. & Traverse City, Mich., Dec. 23, 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.”

For more information on today’s most prominent fraud threats and how to protect against fraudsters please see ThreatMetrix’s videos: “Fraud Prevention Recommendations,” and “Current Trends in the Online Fraud Environment?” Download the full ThreatMetrix report at info.threatmetrix.com/Ponemon-ExecSummary-Sept2011.html .

About ThreatMetrix ThreatMetrix is a leading provider of multichannel cybersecurity solutions that enables brands to safely and securely accelerate online transactions in real-time. The ThreatMetrix Cloud-Based Fraud Prevention Platform, incorporating ThreatMetrix SmartID™ cookieless device identification, provides online businesses with the ability to protect themselves and their customers by verifying new accounts, authorizing payments and transactions and authenticaticating user logins. The company serves a rapidly growing international customer base across a variety of industries, including financial services, e-commerce, social networks (dating, gaming), government, affiliate marketing and payments. For more information, visit www.threatmetrix.com or call 1-408-200-5755.

© 2011 ThreatMetrix. All rights reserved. ThreatMetrix, the ThreatMetrix Cloud-Based Fraud Prevention Platform, ThreatMetrix SmartID, ThreatMetrix ExactID, and the ThreatMetrix logo are trademarks or registered trademarks of ThreatMetrix in the United States and other countries. All other brand, service or product names are trademarks or registered trademarks of their respective companies or owners.

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Source: Company press release.