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Credit Crunch Leads to 71 Percent of Britons Shopping Online for Bargains This Christmas
But Businesses Must Overcome Concerns over Fraud to Reap Benefits
LONDON – November 11, 2008 – A YouGov survey commissioned by
VeriSign, Inc. (NASDAQ: VRSN), the trusted provider of Internet infrastructure
services for the networked world, has revealed that the credit crunch
will prompt 71 percent of Britons to shop online for bargain Christmas
gifts this year. While this is encouraging news for retailers, the bad
news is that credit-strapped consumers might hold back making purchases
if they don’t feel secure when shopping for bargains online. Online
scams such as online account takeover, phishing, spyware and viruses
are rife and growing more sophisticated, and many commercial sites have
not taken precautions to prevent fraud or encourage consumer confidence
online.
Fraud is #1 concern
Over a quarter of those polled (28 percent) said that ID theft,
fraud and not trusting the site they are on are the biggest factors holding
them back from buying online. Interestingly, those under 25 and over
55 were the most concerned with their online security. In their list
of overall concerns about buying online this year, personal security
was followed by not being able to try before buying (25 percent) and
concern that gifts won’t arrive in time for Christmas (15 percent).
Despite the perceived risks, many consumers remain
undaunted by online fraud. Over half of Britons say “nothing will hold
them back” from shopping online this year, with the largest proportion
being men (57 percent). The survey also revealed that most of those
doing the spending (over 80 percent) will be younger Britons, aged 18-34.
UK regional shopping plans uncovered
The survey also uncovered regional differences in
how Britons will shop online, such as:
- Scots set to surpass Londoners in shopping online. Approximately 78 percent of Scots plan to shop online versus
68 percent in London;
- In fact, Londoners will spend less online than any other UK region;
- Northerners most brazen to personal security risks. Londoners
are most concerned about ID theft and fraud and trusting the site they’re
on (38 percent) while Northerners are least (23 percent).
A call to action for UK business
“Businesses have an opportunity to benefit from the increase
in online shopping expected this year by reassuring online customers
concerned about security that they are on a safe Web site,” said Tim
Callan, vice president of SSL product marketing at VeriSign. “Businesses
need to be more proactive in making security obvious on their Web sites
by displaying visible cues such as a padlock, a green address bar and
other security indicators for consumers.”
One of the most effective ways to demonstrate that
a site is secure is through Extended Validation (EV) Secure Socket Layer
(SSL) Certificates. EV SSL is an industry standard to verify the identity
of the operator of a Web site and was created in direct response to
the rise in Internet fraud and eroding consumer confidence in online
transactions. Before customers share confidential data online, they
want proof that the site is who it says it is. VeriSign’s EV SSL Certificates
display a green address bar in compatible Web browsers, which offers
immediate reassurance that the visitor has reached a site whose authenticity
has been verified by VeriSign. The green address bar makes it easy for
consumers to know that they are at a secure Web site while helping defeat
online criminals who use false Web sites to acquire personal information
illegally.
VeriSign helps businesses educate consumers about online security
As one of the most active and trusted companies working towards
a safer experience online, VeriSign has created a consumer education
site www.verisignsecured.co.uk
to help businesses educate consumers about being secure online and encourage
confidence in online shopping.
“Only informed and confident online shoppers will
spend money online this Christmas,” said Callan. “Businesses need to
do what they can to encourage consumers to feel safe and shop online.
More and more consumers are looking for visual cues showing that a site
is secure so it’s important that businesses make it obvious that that
their Web sites are legitimate.”
*Notes to editors
The online survey was commissioned by VeriSign and conducted
by YouGov on 19-21 September. 2,187 UK adults (aged 18+) were polled
in the sample.
About VeriSign
VeriSign, Inc. (NASDAQ: VRSN) is the trusted provider of Internet
infrastructure services for the networked world. Billions of times each
day, VeriSign helps companies and consumers all over the world engage in
communications and commerce with confidence. Additional news and information
about the company is available at www.verisign.com.
Contacts
Media relations: Victoria Henry, vhenry@verisign.com,
+44 20 8600 0723
Weber Shandwick for VeriSign: LCurtis@webershandwick.com,
+44 20 7067 0513
Investor Relations: Nancy Fazioli, ir@verisign.com,
+1 650 426 5146
Statements in this announcement other than historical
data and information constitute forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. These statements involve risks
and uncertainties that could cause VeriSign's actual results to differ
materially from those stated or implied by such forward-looking statements.
The potential risks and uncertainties include, among others, the uncertainty
of future revenue and profitability and potential fluctuations in quarterly
operating results due to such factors as the inability of VeriSign to
successfully develop and market new products and services and customer
acceptance of any new products or services, including VeriSign Identity
Protection services and solutions; the possibility that VeriSign’s announced
new services may not result in additional customers, profits or revenues;
and increased competition and pricing pressures. More information about
potential factors that could affect the company's business and financial
results is included in VeriSign's filings with the Securities and Exchange
Commission, including in the company's Annual Report on Form 10-K for
the year ended December 31, 2007 and quarterly reports on Form 10-Q.
VeriSign undertakes no obligation to update any of the forward-looking
statements after the date of this press release.
©2008 VeriSign, Inc.
All rights reserved. VeriSign, the VeriSign logo, the checkmark circle,
and other trademarks, service marks, and designs are registered or unregistered
trademarks of VeriSign, Inc., and its subsidiaries in the United States
and in foreign countries. All other trademarks are property of their
respective owners.
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