ID Theft Threatens AU E-Commerce

By Greg McNevin

August 30, 2007: According to a new report from the Office of the Privacy Commissioner, one in ten Australians have been a victim of ID theft and there is very little trust in online businesses when it comes to keeping personal information safe.

The 2007 Community Attitudes Towards Privacy Study canvassed the opinions of a representative sample of over 1,500 Australians from around the country, and found that 9 percent claimed to have been subject to identity theft, while 17 percent knew someone who had.

Further to this, the survey discovered that a mere 17 percent trusted online businesses with their personal information, a dismal number considering 37 percent trust traditional retailers, 73 percent believe government departments keep their data under lock and key and 91 percent gladly put their privacy in the hands of health service providers.

In another worrying sign for online retailers, the survey also found that compared to two years ago, half of those questioned are more worried now than they were then about handing over personal information online. A further 45 percent also thought using the internet made the chance of ID theft far more likely.

The Privacy Commissioner, Karen Curtis cited the rapid evolution of technology as one factor making them wary about sending private information over the internet. Something Curtis says “reinforces my view that as individuals we have to take personal responsibility for our own information and just ask questions all the time about why do you need that information, and just be more vigilant.”

Curtis claims that the best way to address these concerns is for people to “arm themselves with knowledge of privacy safeguards built into technologies, as well as having an understanding of their rights under the Privacy Act.”

Good advice, however, the fact that consumer confidence in online transactions appears to have been shaken does not bode well for the Australian e-commerce sector.

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