Online Banking Still Growing Despite Security Concerns

The number of Australians using Internet banking increased 26% to 5.5m in the twelve months to May 2005, according to new research from ACNielsen. This growth comes despite concerns about ID theft, which are also reflected in a new US poll from Experian and Gallup.

ACNielsen's latest online study of more than 20,000 Australian consumers found that 82% of regular (daily or weekly) Internet users now use online banking. This represents an increase of 1.1 million in the past 12 months, with one in five regular Internet users now using an Internet banking service every day. The increase in online banking is more than double the growth in total Internet use.

The increased popularity of banking online has occurred despite high levels of public awareness and media attention around online security. ACNielsen found that consumers' primary security concerns were fraudsters obtaining usernames and passwords (53% indicated a very high level of concern) and identity theft (42%). Concern was highest among those new to the Internet, those who don't bank online, and among females and older Internet users.

In the US, the latest Personal Credit Index poll from Experian and Gallup found that younger users were more likely to fall victim to ID theft - perhaps because of a lack of concern about the risks. The poll, which surveyed more than 1,000 adults in July, found that 18% of consumers have experienced some form of ID theft, rising to 25% for people under 30. However, two-thirds of those who have not been the victims of identity theft think it could never happen to them. Only 6% have purchased some form of identity theft protection, and just 4% have identity theft insurance or have checked their credit report to see whether they are victims of ID theft.

Online theft tops the list for concern about financial information - 62% worry that this could be stolen online - but other possibilities are almost equally high in consumers' minds. More than half are concerned that their personal information could be stolen from the mail (55%) or from a shop (53%), while smaller numbers fear identity theft from their garbage (40%), their home (33%), or their work or school (25%).

ACNielsen's Australian web site is at www.acnielsen.com.au . More information about the Experian-Gallup Personal Credit Index is at www.PersonalCreditIndex.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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