A recent study published in the International Journal of Business Governance and Ethics reveals that an increasing number of people are hesitant to trust their finances to virtual accounts. Researchers Susan Sproule and Norm Archer from McMaster University in Ontario report that Canadians who regularly shop online are growing more concerned about identity theft and fraud.
Fraudsters employ a range of tactics, including phishing for log-in credentials, credit card skimming, insider theft, digital counterfeiting, and identity trafficking. For Canadians who fall victim to these schemes, the process of clearing their names can be both costly and time-consuming.
The McMaster research team developed a model outlining various methods used by fraudsters to exploit online users and conducted a survey among Canadian consumers to report their findings. The survey revealed that when considering fraud involving new and existing bank accounts, credit cards, and other sources, one in five people have stopped or reduced their online shopping. Additionally, one in ten Canadians have either stopped or reduced their online banking activities due to fears of fraud.
“These findings are concerning for both businesses and the government,” says Sproule. “If consumers halt their online activities, the productivity benefits of e-business will not be realized.” Previously, there was limited information on the impact of identity theft in Canada, and academic analysis of the situation was scarce. Sproule adds, “Unaddressed, the issues surrounding identity theft and fraud could significantly impact e-commerce.”
Sproule and her team are part of a program that brings together researchers from various universities and experts from the financial and telecommunications sectors. Their research aims to identify the processes involved in online identity theft and fraud.
Their model of online cybercrime highlights identity theft and fraud as significant issues, which will help lawmakers draft new regulations to combat these crimes.
Educating the public on how to protect their personal data can boost their confidence in conducting secure online transactions. By being informed, individuals can better safeguard their information and continue to enjoy the benefits of e-commerce.
