29 September 2003

*Independent research reveals customers still don't fully trust electronic statements, despite them being more secure than postal delivery. Companies need to do more to allay fears, says Detica *

The security of online financial information and electronic statements is still a major concern for consumers, and a lack of effective campaigns to banish the widespread misconceptions that paper statements are safer is hampering the development of money-saving and benefit-enhancing initiatives such as Interactive eStatements.

The findings are the results of research commissioned by Detica, the independent IT services company, and undertaken by The British Market Research Bureau who polled 1011 adults representative of the GB population in a survey assessing interest in interactive eStatements (electronic statements from organisations such as banks, building societies, retailers, phone companies or utilities, sent via e-mail or Web).

It revealed that concerns about security and privacy are the biggest single barrier to consumers receiving statements electronically, with 28 per cent stating this as a reason why they would prefer not to receive statements via email. This is despite an explosion in identity theft cases where criminals have rifled through domestic rubbish discarded by individuals, in order to 'steal' identities.

This preference for paper correspondence flies is in the face of findings by credit reference agency, Experian. Its research shows that 72 per cent of rubbish bins contain the full name and address of at least one member of a household, and 40 per cent contain a whole credit or debit card number that could be linked to an individual - key data which is used by criminals to 'steal' an identity.

David Porter, Head of Security & Risk at Detica, comments: "The belief that paper statements are 'safer' than their electronic equivalents is just not true. Quite the reverse: one of the most common methods of conducting identity theft is to steal paper documents discarded by members of the public. With modern encryption techniques, it is actually very difficult to hack into email and account details online - far harder than stealing documents from somebody's rubbish bag or swiping the envelope before it is ever posted."

Porter continues: "Identity theft is the fastest growing form of white collar crime. According to the National Criminal Intelligence Squad the British Economy suffers a loss of £1.3 billion per year as a result of identity fraud. Interactive eStatements are actually a significant defence against identity theft and companies need to communicate the benefits of them to consumers much more than at present.

"They represent a 'win win' situation. The customer is given information in a more secure, user friendly, timely and flexible format, whilst the business saves money on administration and postage. It is also far easier to spot discrepancies and act on them. Interactive eStatements are the future and the quicker customers and businesses embrace them, the quicker both parties will reap the benefits."

Nick Miles Text 100 Public Relations Tel: +44 (0)208 846 0700 email: