According to a survey by USA Today 24% of people who regularly shop online have cut back or stopped altogether. The reason? Recent large data breaches has created caution among online shoppers. According to the report 24% of those surveyed said they had recently stopped buying online because of concerns about the safety of information they might put online. Another 56% said they reduced the number of Internet sites they used or were sticking with larger, more well known companies they felt were safe.
The survey offered no breakdown of the African-American market and their reaction to data breaches and online shoping. But African-Americans do shop online. According to a AdWeek.com report nearly all African-Americans shop online and MinorityEye.com reported that online spending by black people has climbed to over $1.2 trillion by 2012.
The survey also found that users are now watching their bank accounts more closely. The survey showed that 55% of respondents said they were checking their banking, investment and credit card sites frequently for evidence of fraud.
The poll indicated that people with less education and less income were more inclined to stop shopping online altogether. Those with more education with greater incomes reacted by changing passwords and reducing the sites they shop on.
The evidence indicates that credit and debit card fraud is starting to erode confidence in providers like VISA, MasterCard and AmericanExpress. Many consumers are using cards less often or simply abandoning them altogether after fraud incidents. This according to a global survey of 6,100 consumers by ACI Worldwide.
In the US, cards that have suffered a breach are less likely to be used. There is even a term for it, “back of the wallet” syndrome. American credit cards are replaced because of fraud or a data breach get the back of the wallet treatment even though most holders are protected from fraud with the losses being absorbed by the company. Around in one in four say they used fraud-hit cards less often than before, presumably because of the fear of a repeat incident.
Consumers in the U.S. and other countries seem less likely to lose confidence completely. But around 12 percent believe that providers should be doing more.
Breaking It Down
Why has no one asked the black community about online fraud? I searched all over the Internet with no luck. But that is really not important. What is important is that we understand that we are not immune from from fraud since we hold those same credit cards in our wallet.
Black people should spend a little time reading the fraud policies of the credit card providers. Understand the steps you have to take to report a fraud and make damn sure you check your bank and credit card statements frequently. Like every night, online, before, during or after watching Scandal!
Reducing the number of websites you shop on is a good idea. But a better idea is to reduce the information that website has on you. You should delete your credit card number from your profile if you have one with a shopping site. When you do an online purchase re-enter it every time you shop there. If the website asks you if they can the charge the credit card you have on file then answer no and use a different card and then erase them both if you can.
Black people don’t play when it comes to our money. How many time have you heard me say that? So we need to be just as aware and suspicious of the websites and card companies as others.
