PayPal Trust & Safety Study - September 2008 Dene Rogers (1-408-967-5536 or ) Prepared by
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PayPal Trust & Safety Study
September 2008
Dene Rogers (1-408-967-5536 or grogers@paypal.com)
Prepared by
Confidential and ProprietaryObjectives, Methodology and Sample
Confidential and Proprietary 2Objectives and Target Population
Background
•! As part of the ongoing effort to strengthen the PayPal brand, particularly in the sphere of
information security and protection, PayPal sought to understand the current practices and
vulnerabilities of the internet users in the United States, Canada, France, Germany, Spain
and the United Kingdom.
Objectives
•! To develop interesting and informational material for press releases highlighting PayPal’s
role providing information security:
–! Demonstrate the need for consumer protection against identity theft and fraud
–! Position PayPal as the consumer advocate for online safety and privacy
–! Secure coverage of PayPal’s Privacy Rating and consumer protection offerings
Target Population
•! The research covered the following target groups:
–! Online consumers who have purchased something online in the last 3 months.
Confidential and Proprietary 3Methodology and Sampling Frame
Methodology
Quantitative research:
•! Online based survey through email invitations sent to online panelists.
Sampling Frame
•! The total sample size of 1,000 respondents per country.
•! Quotas were set up during fieldwork to ensure sample distribution by age and
gender, as well as PayPal usage.
•! The sample supplier for this study was E-Rewards.
•! Fieldwork was conducted from May 28th – June 3rd, 2008 in the United States,
August 15th – 25th in Europe.
Confidential and Proprietary 4Top Headlines
Confidential and Proprietary 5Global Findings:
Identity theft is a growing and poorly understood problem
•! Identity theft is more pronounced in English speaking countries. 1 in 10
online consumers in Canada, the UK and the US have been victims of ID
theft. Only about 1 in 20 are ID theft victims in France, Germany and
Spain.
–! Over a third of victims have no idea how the identity theft happened and two-
thirds had to be told about it by their creditors or the authorities.
•! Almost all online consumers register some level of concern with online
scams and identity theft.
–! That level of concerned has remained high over the last decade, even while
concerns with other aspects of online shopping have subsided.
–! Unsurprisingly, victims and friend of victims have the highest levels of concern.
•! Credit cards are the most often used form of payment online.
–! However, among PayPal account holders (who are familiar with PayPal’s security
policies) PayPal is thought to be the most secure payment method, better than
credit cards or gift cards.
•! Among online social network users, 1 in 6 display information on their sites
that they also use for their passwords.
–! That is about 1 in 15 online consumers are putting themselves at risk by
displaying password related information on social networking sites.
–! “How secure is using Fluffy’s name when your MySpace page is dedicated to
Fluffy?”
Confidential and Proprietary 6Canadian Findings:
Anglo-American block
•! Canadian online shoppers are similar to American and British consumers in
terms of experiences and tastes.
–! Three quarters (73%) of Canadian online consumers have online banking. PayPal
account holding is relatively lower at 44%.
•! Canadians are very confident in their online banking security (90% secure).
–! One in ten Canadian online shoppers have experienced ID theft, an additional
24% know an ID theft victim.
•! Canadian frequent online shoppers (13%) tend to be slightly more likely to be ID theft
victims.
–! Canadian consumers’ top online shopping concerns are protecting privacy (53%
very concerned), preventing fraud and ID theft (46%) and excessive shipping
fees (43%).
•! Fraud has decreased 6 percentage points as a concern for Canadians since they started
shopping online. Shipping fees are essentially unchanged as a concern over the same
period.
–! Canadians are heavily reliant on credit cards.
•! 92% use credit for online shopping. The closest alternative payment method, PayPal, is
only used by 38% of consumers.
•! Canadians are big on credit card convenience. 51% say they use them for that reason.
•! Canadian PayPal users are more likely to say they are required to use PayPal (37%) than
any other reason.
Confidential and Proprietary 7German Findings:
Cautious and Secure
•! German online consumers have the lowest levels of trust in E-commerce...
–! Two-thirds (65%) of German online consumers have an online bank account
•! Germans are the least confident in the security of their online accounts (49% secure; 47%
somewhat secure).
•! And more Germans than any other nationality think offline banking is more secure (41%).
–! Fewer than half German online consumers rate either credit cards (45%), debit
cards (40%) or PayPal (47%) as secure.
•! However German PayPal users are more confident (67% secure).
–! While over half of German consumers (54%) save their credit cards with online
retailers, few Germans (31%) use their computer browsers to store passwords.
•! …But Germans have the lowest levels of ID theft and concern with online
crime.
–! Less than one in thirty (3%) German online shoppers have experienced ID theft,
and only 10% know a victim.
•! Germans have the least concern that ID theft will happen to them (23% very concerned,
49% somewhat concerned).
•! Germans receive the least amount of “phishing” emails with 78% receiving 1 a month or
none.
Confidential and Proprietary 8Spanish Findings:
Unique Concerns
•! Spanish online consumers have some of the lowest levels of exposure to
online commerce.
–! Less than half (49%) of Spanish online consumers use online baking. A similar
number (50%) have PayPal accounts, and only 27% have both.
•! Spanish online banking users are satisfied with the safety of their online accounts (89%
secure).
•! Spanish online consumers also report the least experience with online shopping. 76% have
been shopping online for less than five years, and only 9% shop weekly or more often.
–! Spanish online consumers also have the lowest rate of social networking site
usage (34%) of the 6 countries in this study.
–! Spanish consumers are the least familiar with the terms “spam” (58% very
familiar), identity theft (32%), spyware (42%) or “phishing” (29%).
•! As a result, Spanish online consumers have unique concerns and
preferences.
–! As addition to being concerned about online fraud (83%), Spanish consumers are
also very concerned about the reliability of online commerce in general.
•! 84% are concerned that the purchased product will not be as pictured or imagined, 83%
are concerned about poor product quality, and 82% are concerned about not receiving the
product at all.
Confidential and Proprietary 9French Findings:
Potentially At-Risk
•! French online consumers resemble those in other countries.
–! Two-thirds (68%)of French online consumers have online baking. PayPal has a
fairly low market penetration at 36%.
–! 6% of French online shoppers have experienced ID theft, an additional 18% know
a victim.
•! French ID theft victims are most likely to discover it through their credit card statements
(45%) and are most likely to contest the charges with the credit card company (70%) or
report the fraud to the police (52%).
–! French consumers’ top online shopping concerns are protecting privacy (40%
very concerned) and preventing fraud and ID theft (43%).
–! French consumers are the most reliant on credit cards of any nationality
surveyed.
•! 95% use credit for online shopping. The closest alternative payment method, PayPal, is
only used by 33% of online consumers.
•! But they have the most potentially problematic situations for identity
security.
–! Only 58% of French financial websites require a 2nd level of security like a pin
code or security question.
–! 46% of French consumers have 3 or fewer online passwords. 52% change them
only when required or never.
•! 50% of French online consumers save passwords in their computer.
•! 14% of French online consumers are at risk because they display information on their
social networking sites that they also draw upon to create online account passwords.
Confidential and Proprietary 10British Findings:
Mature Online Markets
•! The United Kingdom has perhaps the most developed online marketplace
of any country surveyed.
–! Four-fifths (81%) of British consumers have online banking. Two-thirds (66%)
use PayPal.
•! British consumers also have the highest rates of PayPal (58%) and debit card (63%)
usage of any market surveyed.
•! British credit card users are the most likely to say they use credit because it is the most
secure (30%). They are also likely to say they are required to use PayPal (38%).
•! British consumers are also the least confident in the offline security of any payment
method (cash, check etc) compared to other nationalities.
•! British consumers are most likely to receive financial statements in an electronic format
only (19%).
–! With development comes problems.
•! 14% of British respondents report they have been the victims of identity theft.
•! Half of British online consumers are very concerned about fraud & identity theft (49%) and
protecting privacy online (50%).
•! British respondents report the most phishing attacks (34% receive at least one phishing
email a day) and spam email (33% at least 10 a day).
Confidential and Proprietary 11Detailed Findings
Identity Theft
Confidential and Proprietary 12Spam is a universal language
•! Spam is the most familiar online
hazard across Canadian and Western
European online consumers more
than two-thirds typically being very CA DE ES FR UK
familiar with the pest emails (virtually
all have some familiarity). Spam 73 76 58 68 78
•! Familiarity with identity theft
concentrates in the English speaking Identity theft 66 36 32 41 74
world where better than two thirds
are very familiar with the term. Spyware 58 43 42 46 58
–! In continental Europe it is very
Phishing 45 50 29 32 55
familiar to about a third of online
consumers.
Credit card cloning 41 25 27 24 62
•! Germans (50% very) and British
(55% very) are the most familiar with [% “very familiar”]
phishing
Top third of responses
–! Frequent online shoppers (weekly
or more) and PayPal customers Middle third
tend to be more familiar with all Lower third
these online hazards.
Q29a. How familiar are you with each of the following online terms?
(Very familiar, somewhat familiar, Not very familiar or Not at all familiar)
[Not asked in US survey] Base (all)=1000 per country
Confidential and Proprietary 13Identity theft is more prevalent in the English-speaking world
•! As reported by online consumers,
identity theft is a bigger problem in
the English speaking world than in
other parts of Western Europe.
–! More than a third of online
consumers in English speaking
countries report some experience
with ID theft.
–! Typically, only one in five French or
Spanish online consumers report
experience with identity theft.
–! German online consumers have the
lowest experience with ID theft.
•! Victims and relations of identity theft
victims are more likely to be frequent
online shoppers and use social
network sites.
•! Victims and relations are also likely to
be more concerned about ID theft
[Multiple response allowed]
happening again and change their
passwords more frequently as a
result.
Q31. Have you or someone you know been the victim of identity theft?
(Yes, I have been a victim of identity theft; Yes, someone I know has been the victim of identity theft; No) Base (all)=1000 per country
Confidential and Proprietary 14Victims report identity theft from a range of perpetrators
•! In France (42%), the UK (40%) and
the US (43%), victims of identity CA DE* ES* FR* UK US
theft often do not know how the
misfortune befell them. Unknown 30 21 22 42 40 43
•! German (38%) and Canadian (32%) Credit/debit card
victims report a higher prevalence of 32 38 14 14 23 26
stolen
credit or debit card theft.
Business lost/gave
–! Women typically report higher rates 21 15 16 17 16 20
away financial info
of credit or debit card theft.
Financial papers
•! Only in Spain is online fraud including 4 9 6 9 3 6
stolen
email fraud (32%) or viruses and
Computer virus/
spyware (20%) a significant problem. spyware
5 9 20 14 6 8
–! Spanish online fraud victims tend to
be younger (under 44), less affluent Email fraud 4 3 32 6 3 3
and less educated.
Other 20 18 10 12 17 18
[Multiple response]
Top third of responses
Middle third
Lower third
Base (is a victim of identity theft)
N=CA: 96, DE: 34, ES: 50, FR: 64, UK: 144, US: 114
Q32. How did this identity theft occur? Your best guess is fine. *indicates small base size
Confidential and Proprietary 15Friends and relatives of ID theft victims also report a
variety of culprits
•! People who know an identity theft
victim, but are not themselves CA DE ES FR UK US
victims, are less aware of the causes
of identity theft. Unknown 36 39 36 32 39 49
•! Credit and debit card theft is the Credit/debit card
most mentioned option, but by less stolen
37 22 25 30 23 28
than one in three relations of identity
Business lost/gave
theft victims. 17 19 15 9 12 13
away financial info
Financial papers
8 6 6 13 10 11
stolen
Computer virus/
7 11 10 11 5 6
spyware
Email fraud 4 4 10 3 5 4
Other 9 7 8 10 14 11
[Multiple response]
Top third of responses
Middle third
Lower third
Base (knows a victim of identity theft)
Q32. How did this identity theft occur? Your best guess is fine. N=CA: 261, DE: 95, ES: 146, FR: 180, UK: 331, US: 379
Confidential and Proprietary 16Most ID theft victims find out about it the hard way
•! Most victims of identity theft find out
that they have been robbed when the CA DE ES FR UK US
bill comes due on the credit card or From credit card
through the bank. 16 27 35 45 24 21
statements
–! Typically a quarter of ID theft
Contacted by bank 30 26 21 30 30 20
victims are notified by their bank
and an additional quarter discover it Contacted by credit card
29 18 11 4 22 26
in their credit card statements. company
–! Spanish and French victims are Received bill for item
most likely to discover the crime 17 15 20 13 13 22
they didn’t purchase
through their credit card
statements. Contacted by merchant 8 11 7 6 6 10
–! A quarter of victims in English From credit report 5 6 9 2 3 8
speaking countries were contacted
about an anomalous charge by their Contacted by collection
7 5 8 2 4 8
credit card companies. agency
–! Respondents in non-English Denied loan or credit 5 6 5 2 3 8
speaking countries report less
contact from their credit Other 7 6 7 8 11 14
companies.
Top third of responses
[Multiple response] Middle third
Lower third
Base (is or knows a victim of identity theft)
Q33. How did you discover the identity theft? N=CA: 341, DE: 126, ES: 193, FR: 240, UK: 454, US: 480
Confidential and Proprietary 17Responses are divided between cutting losses and fighting
the charges
•! The most popular response to identity
theft is to cancel the credit card or
bank account associated with it.
•! Also popular in Canada, France and
the UK is contesting the charges with CA DE ES FR UK
the credit card company or bank.
Cancel the account 52 55 48 39 48
•! Almost half of ID theft victims say
they reported the incident to the Contest the charge with
54 43 26 70 52
police. the credit card/bank
Report to the police 39 43 53 52 44
Contest the charge with
22 20 15 25 17
the merchant
Place an alert on your
30 16 15 18 14
credit report
[Multiple response]
Top third of responses
Middle third
Lower third
Q33a. What did you/someone you know do after they discovered the identity theft? Base (is or knows a victim of identity theft)
[Not asked in US survey] N=CA: 341, DE: 126, ES: 193, FR: 240, UK: 454
Confidential and Proprietary 18Concern about scams and identity theft is high
•! Three-quarters of online consumers
have some worry that they will fall
victim to identity theft. One-quarter
are very concerned.
–! Women, victims of ID theft and
relations of victims are the most
concerned about identity theft
affecting them.
•! Canada, Spain, the UK and the US
have the most concerned online
consumers, with Spain having the
largest number of very concerned.
•! Germany and the France have the
lowest levels of concern with ID theft.
Very concerned – Slightly concerned Not at all concerned
scams are getting – It seems everyone – I am very diligent
worse and worse knows someone who about how and when I
and it’s bound to has had their identity disclose my personal
happen to me stolen information
Q34. How concerned are you that identity theft will happen to you personally? Base (all)=1,000 per country
Confidential and Proprietary 19Privacy and protecting identity are dominant concerns of
online shopping
•! Protecting their privacy and the
related protection from fraud and ID
theft are online consumer’s two CA DE ES FR UK US
biggest concerns.
Fraud or identity
–! Online consumers in Canada and 46 25 48 43 49 36
theft
the United States are also
concerned about shipping fees. Protecting your
53 22 39 40 50 NA
privacy online
–! Spanish consumers are worried
about not receiving the product at Not receiving the
32 13 42 38 30 24
all. product
–! German online consumers are Poor product
34 14 38 34 29 30
unique because they are not quality
overwhelmingly concerned about Not being able to
any online shopping problems. exchange the 36 15 38 29 28 31
product
Product not being
as pictured or 32 15 36 30 25 29
imagined
Shipping, postage
43 11 26 32 26 45
or packing fees
[% “very concerned”] Top third of responses
Middle third
Q18. How concerned are you with each of the following when shopping online? Lower third
(Very concerned, Somewhat concerned, Note very concerned, Not at all concerned) Base (all)=1,000 per country
Confidential and Proprietary 20Identity theft has become the dominant concern of online
shoppers over the last decade
•! Online consumers in Canada, Spain
and the UK have the highest levels
of overall concern with ID theft.
–! Consumers in Canada, Germany,
the UK and the US have all
increased in concern about ID
theft over when they began
shopping online.
–! Spanish consumers are fairly
unchanged with a high level of
concern.
–! French consumers are actually
less concerned now.
Q18/18a. When shopping online in general, how concerned are you with each of the
following? Fraud or identity theft
(Very concerned, Somewhat concerned, Note very concerned, Not at all concerned) (Total Concerned)
*US data from the 2008 PayPal 10th Anniversary Survey*
Q20/21. When you first started shopping online in …, how concerned were you
Base (all)=1,000 per country
about each of the following when making purchases online?
Confidential and Proprietary 21Germans see the least phishing, English speaking
countries see the most
•! More than two-thirds of respondents
report getting at least one phishing
email.
–! German online consumers report
the lowest rate with 2 out of 5
receiving no phishing email.
–! Canada, France and the UK report
the most phishing attacks with
16% of consumers receiving 300 or
more per month None 1-9 10-29 30-99 100-199 200-299 300+
•! Over half online consumers get at
least one spam message a day, one
in six get 10 or more a day.
–! Canada and the UK see the most
intense spamming with 11% and
10% respectively getting more
than 20 spam emails a day.
None 1-9 10-29 30-99 200-2 300-5 600-1 1200- 3000
99 99 199 2999 +
Q29b. How many phishing emails have you received in the last month?
Q29c. How much spam email have you received in the last month?
Base (all)=1,000 per country
[Not asked in US survey]
Confidential and Proprietary 22Detailed Findings
Online Banking and Shopping Confidence
Confidential and Proprietary 23Two-thirds of online consumers have online bank accounts
•! Two-thirds of online consumers
(outside of Spain) have online bank
accounts.
–! Spain has the lowest level of online
banking usage at 49%.
–! Online banking is concentrated
among the consumers under the
age of 45, frequent shoppers and
users of social network sites.
% yes
Q5. Which of the following online services providers do you have an active account. Base (all)=1,000 per country
Confidential and Proprietary 24Few online consumers have online brokerage accounts
•! One in five or fewer online consumers
have an online brokerage account like
Ameritrade, Comdirect or Barclays.
–! Online consumers with brokerage
accounts are more likely to be men,
Not asked
over the age of 45 and more
affluent (income over $100k
equivalent).
•! eBay accounts are concentrated in
the United States, United Kingdom
and Germany.
–! France has the lowest eBay
subscription rates at 46%.
–! eBay account holders are more
likely to be men, under the age of
45, frequent online shoppers and
also have a PayPal account.
% yes
Q5. Which of the following online services providers do you have an active account. Base (all)=1,000 per country
Confidential and Proprietary 25Most online consumers show confidence in the security of
their online bank
•! Among online bank account holders,
the large majority think their
accounts are secure. More than a
third (outside Germany) see their
bank accounts as very secure.
–! Canadian and American online
consumers have the most
confidence in the security of their
online banking.
–! Germans are the least confident. 5-very 3-somewhat 1-not at all
4 2
•! Likewise, most online bank account secure secure secure
holders feel that online and offline
banking is equally secure, although
over a quarter are more comfortable
with offline banking.
–! Here too German online consumers
are the most pessimistic with 41%
saying offline banking is safer.
Online banking Both Offline banking Don’t know
Q6.How would you rate the security of your online bank’s login procedures? Base (online bank account holders)
Q7. Which do you think is more secure? N=CA:731, DE:646, ES:487, FR: 677: UK: 808, US:669
Confidential and Proprietary 26Credit Cards are the most common online payment method…
•! Most online consumers prefer to use
credit cards for their online
purchases. CA DE ES FR UK US
–! Spanish consumers are much less
Credit card 92 82 53 95 86 86
likely to make use of credit cards
(53%).
PayPal 38 36 45 33 58 47
•! PayPal is used by between one-third
and half online consumers to make Debit card 8 45 28 NA 63 37
purchases.
Gift card 11 15 7 4 7 21
–! Use of PayPal accounts roughly
corresponds to subscriptions to Check 2 1 NA 10 4 8
PayPal (Slide 24) with the UK, US
and Spain reporting the most use. Google checkout 2 NA NA NA 5 6
•! Debit cards are also widely used in
UK and Germany. Money/Postal order 4 8 4 NA 1 2
•! Bank transfers are widely used by Cash 2 7 36 3 2 2
Germans.
Store/Retail card NA NA NA 11 5 NA
Bank transfer NA 63 35 NA NA NA
[Multiple response] Top third of responses
Middle third
Q14. Which of the following methods do you typically use to pay for online purchases? Base (all)=1,000 per country Lower third
Confidential and Proprietary 27Credit Cards are convenient – PayPal is safe
•! On average, almost a third of PayPal
users say they use PayPal because it CA DE ES FR UK
is the most secure payment method,
more than either credit or debit Habit 8 7 33 22 10
cards. Convenience 51 53 13 53 37
–! PayPal also has a high use rate
Credit
because it is required by certain card
Security 14 15 13 8 30
sites.
–! Only a quarter say convenience is Easy to track 13 9 19 11 15
PayPal’s main attribute.
Required 14 14 22 6 8
•! Credit cards are the most convenient
payment method for respondents Habit 2 4 11 11 3
(except for Spain).
Convenience 24 30 16 24 27
–! Spanish online consumers find
credit cards less convenient (13%) PayPal Security 30 38 37 27 28
and use it more out of habit (33%)
or requirement (22%). Easy to track 7 10 14 10 5
Required 38 18 23 29 38
Top third of responses
Middle third
Lower third
Q14a. Thinking again about your preferred payment methods online, what would you say is
the primary reason you use the following methods to pay for online purchases?
Base (all)=1,000 per country
[Not asked in US survey]
Confidential and Proprietary 28While credit cards are thought of as generally safest, people
in the know choose PayPal
•! Among all online consumers, credit
cards are seen as the most secure.
CA DE ES FR UK US
–! German and Spanish online
shoppers are much less convinced Credit card 72 45 49 70 73 70
of credit card security. They rank
cash or bank transfers more highly. Gift card 64 52 46 43 47 64
•! However, among PayPal account
holders, PayPal is seen as the most PayPal 64 47 63 61 68 61
secure.
Debit card 30 40 43 NA 57 44
•! Overall, 61% of these online
consumers find PayPal to be secure. Money/Postal order 45 35 50 NA 35 33
–! Only 46% of non-customers give
Cash 27 62 83 21 22 21
PayPal a positive ranking on
security indicating an opportunity to
Check 28 27 NA 30 28 29
spread messaging about PayPal’s
advantages. Google checkout 28 11 NA NA 30 22
Bank transfer NA 66 57 NA NA NA
Store/Retail card NA NA NA 39 NA NA
[% “very or mostly secure”] Top third of responses
Middle third
Q15. When used online, how secure do you think each of these payment methods are in
Lower third
terms of protecting your identity and money?
(5-very secure, 4, 3-somewhat secure, 2, 1-not at all secure) Base (all)=1,000 per country
Confidential and Proprietary 29Most financial accounts require multiple security steps
•! Most financial websites require some
second level of security past
usernames and passwords.
–! British sites are the most cautious
with 96% of British online
consumers with online bank
accounts, trading accounts or
PayPal accounts reporting a 2nd
level of security.
Q15a. Do any of your online financial accounts ask for a second level of security besides your Base (PayPal, online bank, and online brokerage account holders)
username and password (like pin number, site key, or security question)? N=CA:828, DE:759, ES:716, FR: 775: UK: 912
[Not asked in US survey]
Confidential and Proprietary 30Most consumers save their credit card
information with at least a few online retailers
•! More than half of credit card using
online consumers save their credit
card information with at least a few
of the online retailers they shop with.
–! While most countries have a similar
level of overall password saving
use, Spanish participants report the
most intense use with 30%
reporting that they save their credit
card info on all the retail websites
they use.
–! Frequent online shoppers are more
likely to save their password
information as are people who
infrequently change their
passwords.
Base (use credit cards)
Q17. Do save your credit card information and address with online retailers where you shop? N=CA: 928, DE: 877, ES: 697, FR: 967: UK: 959, US:857
Confidential and Proprietary 31Cash is thought of as the safest offline payment method
•! Offline, cash is still king. Cash, with
the anonymity it provides, is
considered the most secure form of CA DE ES FR UK US
payment in the brick-and-mortar
world. Cash 78 71 83 64 64 84
–! Americans (81%) and Canadians
(76%) also rate gift cards and Gift card 76 55 63 58 60 81
certificates highly on security.
Money/Postal order 69 41 60 NA 54 65
–! Germans (68%) and Spaniards
(71%) are also positive about the Credit card 63 49 67 68 66 63
security of bank transfers.
–! British online shoppers are more Debit card 53 44 63 NA 59 51
pessimistic about all payment
methods with no more than two- Check 46 37 NA 44 40 46
thirds (66%) rating credit cards as
Bank transfer NA 68 71 NA NA NA
secure.
Store/Retail card NA NA NA 48 44 NA
[% “very or mostly secure”]
Top third of responses
Middle third
Lower third
Q16. When used offline or in person, how secure do you think each of these payment
methods are in terms of protecting your identity and money?
(5-very secure, 4, 3-somewhat secure, 2, 1-not at all secure) Base (all)=1,000 per country
Confidential and Proprietary 32Detailed Findings
Password Protection
Confidential and Proprietary 33Most consumers use multiple passwords,
but rarely change them
•! Most consumers have more than one
password for their online accounts.
The median number is four to six
different passwords.
–! Typically, more than half of these
online consumers have four or more
passwords.
–! Men, frequent online shoppers and
victims of identity theft tend to
have a higher number of
passwords.
7 or more 4-6 2-3 1
•! Despite having a fair number of
passwords, most online consumers do
not change them frequently.
–! Over a third change their passwords
only when or if required. An
additional one in six change their
passwords once a year or less often
–! Consumers in Germany and English
speaking countries change their
passwords most often, while Spain
and France do so least often.
Once a Every 2-4 2x a 1x a < once
Only when required/never
Q8. How many different online passwords do you have? month+ months year year a year
Q11. How often do you change your online account passwords?
Base (all)=1,000 per country
Confidential and Proprietary 34Most consumers memorize their passwords
•! Most of these online consumers say
CA DE ES FR UK US
they memorize their passwords.
–! However, less than two-thirds of Memorize 74 68 81 79 77 63
online consumers say they ONLY
memorize their passwords. Memorize only 61 57 68 60 66 45
–! Americans are least likely to only
Write down 18 18 17 10 14 36
memorize their passwords with no
other assistance. Websites “remember” 15 13 9 20 14 20
•! Writing passwords down or storing
them with websites are also Stored in a computer
11 13 6 11 8 14
document
frequently used password
management practices. On a post-it 3 4 3 3 1 2
–! Americans are most likely to write
down their passwords (36%). In mobile phone/PDA 2 8 4 5 4 NA
•! Only a few take advantage of In address book/
11 9 4 12 7 NA
technology by using password planner
managers or mobile phones/PDAs. Other 3 4 2 2 6 7
[Multiple response] Top third of responses
Middle third
Lower third
Q9. How do you keep track of your online passwords? Base (all)=1,000 per country
Confidential and Proprietary 35While most consumers memorize their passwords, many
rely on their computers for help
•! Less than half of these online
consumers use their computers to
help them remember passwords by
storing them in the browser or
computer.
–! Online consumers who report
memorizing passwords are less
likely to rely their computer.
–! Consumers who only memorize
passwords are even less likely to
rely on their computers for
password recall.
–! German and British online
consumers are the least likely
nationalities to rely on their
computers for password help.
Q12. Do you have your computer or internet browser save your passwords? Base (all)=1,000 per country
Confidential and Proprietary 36Important dates, family member or pet names are the most
commonly used passwords
•! Almost half of online consumers use
important family dates, family CA DE ES FR UK US
member names or nicknames or pet’s
Important dates 15 18 21 32 20 19
names as their password.
–! Name and date usage is highest in Family name or
22 20 14 31 22 24
France where 53% use personal nickname
information as their password. Pet’s name 21 13 15 17 18 20
•! Use of “secure” passwords like
random numbers, alphanumeric Random 10 7 9 9 16 17
sequences or made up terms is much
Phone number 10 6 9 5 9 6
lower among these online consumers.
–! Germans (27%) and Americans Address 7 5 5 6 8 6
(24%) are most likely to use the
more secure passwords. Social Security # 3 3 6 4 3 5
(vol) Alphanumberics 7 7 4 3 4 7
(vol) Locations 1 4 1 4 3 2
Other 30 24 30 29 29 24
[Multiple response] Top third of responses
Middle third
Lower third
Q10. What do you most often use to create your account passwords? Base (all)=1,000 per country
Confidential and Proprietary 37Online consumers are not reluctant to share personal
information on social network sites…
•! Over 4 in 10 online consumers use CA DE ES FR UK US
social networking sites.
–! Social networking sites are Use social networking 49 40 34 45 48 41
particularly popular in Canada
(49%), Britain (48%) and France Birth dates 54 72 71 83 44 46
(45%); and among consumers Messages from friends
younger than 45. 73 19 50 33 71 68
and family
•! Among social network users, the
Interests & hobbies 46 47 60 51 49 66
most popular posted information are
birth dates, followed by messages Video clips 12 2 20 11 10 17
from friends and family and
information about hobbies and Embarrassing pictures 16 3 7 6 31 17
interests.
Pet’s name 12 2 10 6 6 15
–! Continental Europeans are most
likely to post birthday information Children’s name 12 2 8 6 6 12
(and other personal information like
phone numbers and addresses). Phone number 10 41 9 22 9 7
–! English speaking countries are more
likely to use social networking sites Address 4 30 12 19 2 4
to exchange information with
Other 5 8 7 6 8 8
friends and talk about interests.
[Multiple response]
Q35. Do you use social networking sites like MySpace, Facebook or Youtube?
Q36. Which of the following do you display on social networking sites like MySpace, Base (use social networking)
Facebook, YouTube, etc.? N=CA: 491, DE: 397, ES: 341, FR: 454: UK: 480, US: 408
Confidential and Proprietary 38…And some are risking exposing the information they use
for online passwords
•! Among online consumers who use
social networking sites, one in six
(one in fifteen of all online
consumers) are at risk of exposing
their passwords by sharing the same CA DE ES FR UK US
sorts of information on their
Use social networking 49 40 34 45 48 40
networking sites.
–! French social network users run the Potential exposed
14 15 19 31 14 20
greatest risk of exposure (31%) password information
primarily because of the large Birth date info
number who use birthdates as 8 12 16 26 9 10
exposed
passwords and publish their
birthdates online (26%). Pet’s name exposed 4 1 3 1 3 5
–! British, Canadian and German Family member name
social networking users are the 3 1 2 2 3 5
exposed
most circumspect with the
Phone number
information they publish. exposed
-- 1 -- 1 1 1
Address exposed -- 1 1 1 -- --
Top third of responses
Middle third
Lower third
Base (use social networking)
N=CA: 491, DE: 397, ES: 341, FR: 454: UK: 480, US: 408
Confidential and Proprietary 39Most online consumers are reluctant to share password
information with their families
•! A majority of online consumers say
they do not share password
information with their families.
–! German online shoppers are the
most private with their information;
only 28% have ever shared
password information with
relatives.
–! Americans are the most trusting,
almost 6 in 10 have at some point
shared password information.
–! Men are least likely to share
passwords.
–! Families with children tend to be
the most likely to share password
information.
Q13. Have you ever shared your passwords with a significant other/family member? Base (all)=1,000 per country
Confidential and Proprietary 40Detailed Findings
Personal Information Safety Habits
Confidential and Proprietary 41Most consumers still receive paper financial statements
•! A large majority of online consumers
still receive financial statements from
their banks and credit card
companies in paper form.
•! About one third of these online
consumers (excluding the US) receive
their statements online. Fewer than
one in five receives electronic
statements only.
–! France is the most resistant to
online statements with only 26%
receiving electronic statements.
–! British consumers have the highest
number receiving only electronic
statements (19%).
Q19. Do you get financial statements from your bank or credit card company?
(Yes, I receive a paper copy; Yes, I receive an electronic copy via email; No)
*[US asked only: paper financial statements] Base (all)=1,000 per country
Confidential and Proprietary 42Most who receive paper statements file them away
•! Over half of online consumers who
still receive a paper copy of their
financial statements file them away in
a file cabinet.
–! Victims of identity theft are more
likely to use a secured location, like CA DE ES FR UK US
a safe or locked cabinet.
–! Consumers concerned about ID File cabinet 54 58 53 60 49 55
theft are also more likely to use a
Locked cabinet or
secured storage location. 17 16 9 7 21 23
safe
–! Online consumers who frequently
change their passwords extend Drawer or box 15 15 14 21 18 15
their caution to the real-world; they
are more likely than other to use On my desk 6 2 13 5 2 3
locked cabinets or safes.
At work 2 4 3 4 1 NA
Other 5 5 8 3 7 4
Top third of responses
Middle third
Lower third
Base (keep financial statements)
Q21. Where do you keep your financial statements? N=CA: 721, DE: 674, ES: 727, FR: 855: UK: 771, US:591
Confidential and Proprietary 43Shredder use is concentrated in English speaking
countries
•! Most consumers in Canada, the UK
and the US use shredders to dispose
of financial statements. A large
number of German consumers also
use shredders.
–! Shredder use is most popular CA DE ES FR UK US
among consumers 45 and older,
Put in shredder 58 49 14 16 64 67
frequent password changers and
victims of ID theft . Tear up and throw away 22 31 65 49 15 21
•! Most French and Spanish consumers
tear their statements up before Use shredding service 9 5 7 3 11 8
throwing them away and the French
Throw away 3 2 4 6 1 3
would also use them as fire kindling.
–! Consumers under 45 are the most Recycle 3 3 5 5 1 1
content with just tearing up their
statements. Use as kindling 6 10 5 21 7 NA
Top third of responses
Middle third
Lower third
Q22. When you throw away your financial statements, how do you typically dispose of them? Base (all)=1,000 per country
Confidential and Proprietary 44Most English speaking and German consumers own
shredders
•! Paper shredder ownership echoes the
usage rates seen in the last chart.
Consumers in the US and UK are
most likely to own a shredder,
followed by Canadians and Germans.
–! Shredder ownership follows use.
Consumers 45+ , ID theft victims,
frequent password changers are all
more likely to own shredders.
•! French and Spanish consumers are
not likely to own shredders.
Q23. Do you own a paper shredder? Base (all)=1,000 per country
Confidential and Proprietary 45Shredders are used on financial information
•! Consumers who own paper shredders
use it mostly to dispose of their
financial information.
–! English speaking countries in CA DE ES FR UK US
particular are likely to shred
Financial statements 88 85 73 78 90 88
financial statements, credit card
application, bills and anything else Credit card
containing their personal financial 72 57 44 43 68 78
applications
information.
Other bills 78 64 57 46 80 77
–! Continental Europeans shred
financial statements, but are less Mortgage or loan
56 56 38 36 65 61
militant about destroying every statements
piece of paper with their
information. Receipts 61 46 52 45 67 52
•! Only the French admit to a marginally Things I want to hide
22 22 27 40 26 16
high level of shredder use on items from my family
they wish to hide from family or loved Other 10 14 14 11 16 2
ones.
–! Frequent shoppers and consumers [Multiple response]
under 45 are most likely to use Top third of responses
their shredder to hide things.
Middle third
Lower third
Base (own shredder)
Q24. What do you typically put in the shredder?
N= CA:667, DE: 532, ES: 226, FR: 168: UK: 768, US:768
Confidential and Proprietary 46Online consumers say blank checks and responding to
spam are the most risky behaviors
•! Online consumers in English speaking
countries are divided between the
risks inherent in responding to spam CA DE ES FR UK US
and writing a blank check.
Purchasing something
–! Identity theft victims tend to say from an unsolicited 36 23 17 22 38 37
that responding to spam is slightly email
riskier than leaving a blank check.
•! Continental European consumers are Writing a blank check 34 42 53 43 28 32
much more likely to say that blank Leaving your credit
checks are the riskier behavior. card at a restaurant or 13 18 10 16 21 16
•! British consumers also view leaving bar
your credit card at a restaurant as Carrying $1,000 cash 6 5 10 8 6 7
risky.
Purchasing something
from an unfamiliar 8 6 7 9 4 5
online vendor
Loaning your credit
4 6 3 2 4 4
card to a friend
Top third of responses
Middle third
Lower third
Q27. Which of the following do you think is the most risky? Base (all)=1,000 per country
Confidential and Proprietary 47Consumers say they are most likely to carry a large
amount of cash or shop at an unfamiliar online vendor
•! Online consumers say they are most
likely to engage in what is seen as
the least risky activities of the options
offered: carrying large amounts of CA DE ES FR UK US
cash or shopping at an unfamiliar
Purchasing something
online vendor.
from an unsolicited 3 3 3 4 2 2
•! A significant number of Spanish and email
Canadian consumers choose leaving
Writing a blank check 3 2 2 6 2 3
their credit cards at a bar or
restaurant as less risky. Leaving your credit
card at a restaurant or 22 7 22 10 15 19
bar
Carrying $1,000 cash 35 51 28 37 38 25
Purchasing something
from an unfamiliar 26 26 29 19 38 38
online vendor
Loaning your credit
10 12 15 29 6 14
card to a friend
Top third of responses
Middle third
Lower third
Q28. And which of these activities would you be most likely to do? Base (all)=1,000 per country
Confidential and Proprietary 48Most consumers refuse to give information to unsolicited
vendors
•! A large majority of online consumers
say they have never given their credit
card information to an unsolicited
vendor, including email, door-to-door
salesmen or telemarketers.
–! Canadians are most likely to give
credit info to unsolicited vendors.
–! Identity theft victims are also more
likely to have given out their credit
card info (perhaps leading to the
theft!)
Q29. Have you ever given your credit card information to purchase from a retailer who contacted you
either from an email, someone going door-to-door, or a telephone sales call? Base (all)=1,000 per country
Confidential and Proprietary 49Appendix
Confidential and Proprietary 50Demographics
CA DE ES FR UK US
Male 53% 56% 57% 51% 50% 48%
Gender
Female 47% 44% 43% 49% 50% 52%
18 to 24 years 3% 5% 14% 5% 4% 8%
25 to 34 years 35% 29% 45% 39% 37% 29%
Age 35 to 44 years 23% 28% 27% 23% 26% 23%
45 to 54 years 21% 20% 10% 17% 19% 22%
55 or older 17% 18% 4% 17% 15% 19%Online Usage
CA DE ES FR UK US
PayPal user 44% 36% 50% 36% 66% 55%
PayPal Use
PayPal non-user 56% 64% 50% 64% 34% 45%
Weekly & daily 21% 26% 9% 16% 41% 34%
Online
Shopping Monthly 60% 65% 59% 67% 55% 55%
Frequency
Yearly 19% 10% 33% 16% 5% 11%Canada Special
•! Canadian online shoppers are more
likely to choose to shop at Canadian
(93%) online retailers than American
ones (85%), but just barely.
–! Men (88%) and younger consumers
(88%) are more likely to shop at an
American retailer.
•! Canadian retailers biggest attraction,
relative to US retailers, is the
absence of shipping, custom or
brokerage fees (67%).
–! Price in Canadian dollars (55%) and
supporting the Canadian economy
(45%) are also important.
•! The main attraction of US retailers is
when a product is not available in
Canada (74%).
–! Getting a good price is also
important (64%).
Q37a. How likely are you to choose to shop online at a Canadian online retailer?
Q37b. How likely are you to shop online at a United States online retailer?
Q37c. What are your main reasons for shopping at a Canadian site instead of an United States site?
Q37d. What are the main reasons for shopping at an United States site instead of a Canadian site? Base (CA)=1,000
Confidential and Proprietary 53You can also read
