Chicago (July 9, 2008)—New research from Mintel shows that Americans are increasingly worried about the safety of their identities and financial information online. In a recent consumer survey, Mintel found that two-thirds of adults (65%) are more concerned about online security now than they were five years ago. Over a quarter (28%) of respondents to Mintel’s survey say they are “significantly” more concerned.

“Identity theft and online security are hot issues in the media, making them top-of-mind for consumers,” states Susan Menke, senior analyst at Mintel. “More people now realize the harmful effects of identity theft, so they’re growing increasingly wary of doing business online or responding to unsolicited emails.”

Despite their fears, nearly three-quarters (71%) of adults report managing at least one financial services account online, according to Mintel. The average American manages three financial services accounts via email and the web.

“Though people express fear about identity theft, we still see them active on the Internet for managing personal business accounts and sharing information,” explains Menke. “Online account management is fast, easy and convenient, making it indispensible for many people. But insecurity is keeping America from moving online as quickly as financial services companies would like.”
   
Mintel believes the incidence of identity theft is actually on the decline. According to the US Justice Department, the number of American identity theft victims fell 12% from 2003 to 2006 (from 10.1 million to 8.9 million). Additionally, in 2006 only 8.3% of identity theft cases were the result of online behavior such as computer viruses, hackers or phishing. The majority of actual identity thefts resulted from simple theft such as a stolen checkbook or a dishonest friend.

Recent data from Mintel Comperemedia’s email panel confirm the lower-than-imagined threat of phishing. In 2007, less than 1% of emails tracked by the firm were phishing scams. (Phishing emails attempt to lure recipients to fraudulent websites to steal confidential personal information.)

“The actual risk of having your identity stolen online is not as high as many people think,” states Menke. “Financial services companies are trying to reassure consumers of this fact, but our research suggests their marketing messages aren’t sticking. Companies need to find innovative new ways to convince Americans that their identities are secure online and when using email.”

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About Mintel
Mintel is a leading global supplier of consumer, product and media intelligence. For more than 35 years, Mintel has provided insight into key worldwide trends, offering unique data that directly impacts client success. Mintel Comperemedia is a competitive media monitoring service that analyzes direct mail, email and print advertising trends. With offices in Chicago, London, Belfast, Sydney, Shanghai and Tokyo, Mintel has forged a unique reputation as a world-renowned business brand. For more information on Mintel, please visit www.mintel.com.