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While card fraud in the High Street has fallen by 67 per cent in the last two years, card-not-present (CNP) fraud99 has grown by 74 per cent since 2003, to become the largest type of card fraud in the UK. 5. However, figures for card fraud tend to describe where card details were used, rather than where they were compromised. Card details can be obtained in many ways that do not involve the internet. Furthermore, several organisations told us that certain kinds of security incidents involving the internet, could be mistakenly associated with internet shopping by shoppers.

By value, most internet sales are made by businesses to other businesses. In 2005, Business to Consumer (B2C) sales accounted for only 21 per cent of £103bn online sales made by UK businesses, with the remaining 79 per cent being Business to Business (B2B). 65 63 GfK NOP (2006). 64 OFT estimate based on data from Office for National Statistics (2006a) and ONS Blue Book 2006. 65 Office for National Statistics (2006a). 12. We therefore explored why some businesses and consumers were choosing not to sell or buy online.

7: What factors generate shoppers’ concerns? 42. Seventy-six per cent of shoppers who had concerns said that their fears stemmed from press, TV or radio reports. 43. Many organisations we spoke to thought that media coverage of internet shopping often fuelled the public’s fears unnecessarily. This perception was confirmed by our surveys of consumers and businesses. In our business survey, 46 per cent of those that considered people were less confident buying a product online than in business premises said that concerns about online shopping came from the media, compared to only 26 per cent who said that they came from personal experience.

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