News
        
        Study: Online Privacy Concerns Increase
        
        
        
        Privacy concerns stemming from online shopping rose in 2007, a new study finds, 
  as the loss or theft of credit card information and other personal data soared 
  to unprecedented levels. 
Sixty-one percent of adult Americans said they were very or extremely concerned 
  about the privacy of personal information when buying online, an increase from 
  47 percent in 2006. Before last year, that figure had largely been dropping 
  since 2001.
People who do not shop online tend to be more worried, as are newer Internet 
  users, regardless of whether they buy things on the Internet, according to the 
  survey from the University of Southern California's Center for the Digital Future.
The study, to be released Thursday, comes as privacy and security groups report 
  that an increasing number of personal records are being compromised because 
  of data breaches at online retailers, banks, government agencies and corporations.
The Identity Theft Resource Center, for instance, listed more than 125 million 
  records reported compromised in the United States last year. That's a sixfold 
  increase from the nearly 20 million records reported in 2006.
Data breaches often result from lost or stolen computer equipment such as laptops, 
  though the single largest breach was a case of online hacking. Early last year, 
  TJX Cos. 
  disclosed that a data theft had exposed tens of millions of credit and debit 
  cards to potential fraud.
The card numbers were typically collected during brick-and-mortar retail transactions 
  at T.J. Maxx, Marshalls and other TJX chains. The breach is believed to have 
  started when hackers intercepted wireless transfers of customer information 
  at two Marshalls stores in Miami -- an entry point that led the hackers to eventually 
  break into TJX's central databases.
Nonetheless, concerns about credit card security have largely stabilized, with 
  57 percent very or extremely concerned last year. It was 53 percent in 2006, 
  a difference within the survey's margin of sampling error of 3 percentage points 
  in either direction.
As of 2007, two-thirds of adult Internet users shop online, compared with just 
  half a year earlier. Most spend $100 or less a month, and two-thirds of online 
  shoppers have reduced buying at brick-and-mortar stores.
"You'd think the logical attitude would be to look at this level of concern 
  and say I'm not going to shop on the Web, but it's not happening," said 
  Jeff Cole, director of the Center for the Digital Future. "The advantages, 
  the conveniences are so extraordinary."
With credit card fraud, a customer's liability is capped at $50, and even that 
  amount is often waived. Customers often know of fraudulent charges quickly if 
  they check their accounts online or are notified by their banks, which have 
  security measures in place to flag suspicious transactions.
Identity theft, on the other hand, can take months and sometimes years to find 
  out about and resolve, Cole said, possibly explaining the greater concern over 
  privacy.
Among other findings in the annual survey, online parents are more likely than 
  ever to withhold Internet use as punishment -- 62 percent in 2007, compared 
  with 47 percent a year earlier and 32 percent in 2000. For the first time, denying 
  Internet access is on par with banning television for bad behavior.
"What we've seen over those seven years is parents really now seeing that 
  the Internet has lots of great stuff on it and can be really important, but 
  also can be a time waster," Cole said. "They view it much closer to 
  the way they see television."
Nearly two-thirds of parents, meanwhile, worry about kids participating in 
  online communities and about half believe online predators to be a threat, notwithstanding 
  other research showing fewer youths receiving sexual solicitations over the 
  Internet as they become smarter about where they hang out and with whom they 
  communicate online.
"The perception is higher than reality, but the perception is significant 
  and leads to how much access you give your kids and whether you let them [surf] 
  unsupervised," Cole said.
Internet penetration continues to show signs of plateauing. The percentage 
  of former users who say they have no intention of going back online continues 
  to increase, and less than half of those who have never used the Internet plan 
  to log on in the coming year.
Newer users are more likely than veterans to access the Internet through a 
  dial-up connection, and newer users tend to spend an average of 1.2 hours a 
  week more than veterans playing online games. Veterans are more likely to read 
  a newspaper or listen to the radio over the Internet.
Twenty-one percent of Internet users have stopped a newspaper or magazine subscription 
  because they could get it online, while half of the Americans who read a print 
  edition of the paper said they would miss it if it were to go away.
The study of 2,021 Americans was conducted Feb. 28 to Aug. 6, with participants 
  selected randomly by telephone.