Online shopping fears are exaggerated

Using a credit card to buy online is less risky than credit card shopping over the phone, reports a new survey into consumer use of the internet.

While one in four UK surfers who haven't yet bought online expressed fears over the security of online transactions, the actual statistics of recorded fraud suggest these fears are exaggerated, according to the survey by NOP, commissioned by KPMG, Hewlett Packard and VNU, parent of vnunet.com.

"There have been very few instances of credit card theft," the report says. "When fraud has occurred, credit cards firms have absorbed most of the liability. It is, in fact, riskier to use a credit card over the telephone."

According to the report, entitled The Internet Comes of Age, the number of people using the internet in the UK, France and Germany has increased and they are staying online for longer.

The average age of internet users (32 to 34) is still 10 years or more younger than the average age of the population as whole (44 to 45).

Some 18 per cent of those not online in the UK said they plan to hook up to the internet during the next six months. Of those already online in all three countries, the report predicted that they would spend 50 per cent more time on the internet than they do at present.

The report predicts simpler ways of accessing the web and relevant content will encourage those who do not use the internet to do so.

"Due to even greater PC penetration, cheaper/easier access devices, cheaper access, new applications, wireless and broadband, the internet will continue to grow as a distribution and communications medium," said the report.