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Study: Web users at risk for identity theft

January 29, 2004

Unless there's a blinking "WARNING" on the screen, many Internet users easily hand over personal information, according to a recent study from two MSU researchers.

When users reveal information, such as their social security or credit card numbers, they are at risk for identity theft and fraud, said Robert LaRose, a telecommunication, information studies and media professor.

"Online consumers are being lulled into a false sense of privacy," he said. "It just seems like a growing problem, and also one that's beginning to hurt the performance of the Internet."

LaRose, working with advertising Professor Nora Rifon, created a mock online warning. The warning was patterned after Amazon.com's privacy statement, he said.

"We just made it very explicit what the dire consequences are," LaRose said. "We took our crafted privacy statement and we put a warning box on the top of the statement."

The warning, which was set up for two weeks in April, made it clear that if customers forfeit personal information, they could be in danger of receiving masses of junk e-mail, or could become victims of identity theft. More than 200 people visited the mock site.

"People don't realize that unless you make it a really explicit warning," he said.

LaRose said Internet buyers need to be aware of several things when giving out personal information.

"There's no absolute protection - that's part of the problem," he said, adding that people never should give out their social security numbers and need to look into downloading software that monitors their computers.

"Ultimately, the consumer has to do something and the consumer has to be aware," LaRose said.

Judith Collins, associate professor of criminal justice, said the study was tightly controlled and she's confident in the results.

"It's somewhat human nature in a way - that even though the warning signs are out there, many people tend not to heed them," she said. "We do need much more guidelines and much more than logos on Web sites.

"Anyone can register to do business and purchase the rights to use those logos and symbols."

But it's up to the user to make smart choices, Collins said.

"People can feel secure online if they use judgment and if they shop with a business who they're familiar with," she said. "People really don't attend to it as much until they become the victim."

As long as buyers make smart choices, the dangers of purchasing products online can be minimized, Collins said.

"The threats are no greater online than they are at the local mall," she said.

Computer science freshman Tony Homrich, who was purchasing a computer online with his credit card Sunday afternoon, said he wasn't worried about identity theft.

"As long as the site says it has a secure connection, and as long as it's a site I've seen before, I'm fine with using it," he said. "I've never heard of identity theft happening to anyone I know, so I'm not concerned.

"Maybe if one of my friends experienced it, I would be more careful."

Staff writer Jaclyn Roeschke contributed to this report.

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