Abstract:

Security and privacy concerns are among the major reasons for lack of consumer confidence in online shopping on the Internet.  Issues relating to the use of credit cards as a payment method for online transactions, and the incidences of fraud surrounding this, have been the subjects of debate. The occurrence of fraud in online transactions, and the size of the problem, the risks faced, and the parties affected in South Africa is examined. 

A study of 168 South African credit card consumers was conducted using a structured research approach and an electronic survey.  This study tested concerns about online credit card use, and measured experiences of card use and fraud.  Attitudes about what sites are considered safe, what precautions are taken, and perceptions on who bears the risk were assessed.

The research found that 74% of South African consumers surveyed had used their credit cards to transact online. Only 4% of these consumers claimed to have been victims of online fraud, while 18% claimed to have been victims of non-online fraud.  In spite of this, over 70% of respondents expressed concern about online fraud.  There is a misconception as to who carries the risk in these transactions.