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.