How to Reduce Online Fraud

The National Institute of Standards and Technology awarded Pennsylvania a $1.1 million grant as part of the National Strategy for Trusted Identities in Cyberspace,
(NSTIC,) a public-private initiative to seek ways to create a so-called identity ecosystem that lets individuals choose from an array of credentials to transact business online. They are launching a development to protect its state’s residents from fraud.

In a recent interview with the State Information Security Media Group (CISO), Avakian says, "This is really going to enable convenient, secure, privacy-enhancing online transactions for our customers.This grant is going to enable secure online transactions which should also reduce fraud.”

As always, some citizens are upset that so much money was granted to CISO to prevent online fraud. I am proud of PA for recognizing how severely dangerous online fraud, identity theft and hacking has become. With everything taking place online in today’s world, any steps we can take to be more secure and prevent fraud are crucial.

In the interview, Avakian discussed how the pilot project:

·         Is set up to help reduce fraud for businesses and consumers, with research to back-up software systems which will prevent fraud and provide more accessible trust seals and security scans.

·         Will “piggyback” on existing enterprise directory services that provide single identities to state employees. This will decrease identity theft.

·         The grant will also benefit and employ outside identity verification services.

More states should take a stand against identity theft and hackers and make a difference to prevent online fraud. You don’t even have to spend $1.1 million, like the State of Pennsylvania, all it takes is raising a little awareness.

Website Security Proves Invaluable!

Last month“Visual Website Optimizer” ran contests to have their consumers predict which situation would produce a 400% increase in customer conversions online. They received over 50 entries.

In the case study, two different but identical websites were shown to consumers; one with a security trust seal, and one without. They tested the sites over a 2 week span to see which website could increase their traffic generation the most, and what factors, if any, made that website more appealing to customers.

                                                                                                        

They found that the website with the trust seal increased their conversion rate by 400%! With this study they found some of the key factors that are needed to increase your website’s conversion rate:

1.      Have a secure Trust Seal placed at the top of you website for all your customers to clearly see. You will want to make sure that the Trust Seal is placed in its own section on your site so it won’t distract from the main focuses of your website.

2.      Have a secure Trust Seal also posted on your checkout page. More consumers purchased products when they knew that their credit card information was secure. It is something that is mostly subconscious to customers, but has proven to work for online business owners time and time again.

Business owners, social media experts and visual optimization professionals have found that time and time again you will increase your traffic generation, conversion rates, and profits by having a secure trust seal on your website. In this case it was a 400% increase!

The Most Trusted Trust Seal

Baymard Institutes Security Department conducted some recent research to see which website security seal people trust the most. As a result of this research, they found that most people have very little understanding of the technical security of web pages. They mostly just go with their gut feeling.

In response to this phenomenon, successful business owners always ensure that their websites appear professional and feel secure. Online marketing specialists recommend the use of clean, bright background colors, crisp borders and the use of trust seals to increase the perceived website security. The rationale is that when you make your customers feel comfortable, welcome and secure, they will be more willing to purchase your products.

In the last 2013 case study performed by security experts at Baymard Institute, they raised the question: “Which site seals are actually the most trusted by users?” They sent a list of different reliable and trustworthy Trust Seal providers to consumers and had them vote as to which trust seal gave them the best sense of trust when paying online. Out of 2,510 responses, 1,286 (more than half) responded by saying they had “no preference.” However the rest of the group tended to vote for the ones that included the word “Trust” in the name.

They deduced that the actual trust logo you purchase for your site is not as important as the way your site looks. If your customers feel like your website is professional, friendly and inviting, they will trust you more. However, it does help to include a professional Trust Seal that includes the word “trust” in the name.

This sends a subconscious message to your consumers that they can trust your site. This has proven to make them feel more secure on shopping websites, which in turn makes consumers more likely to purchase the products that are offered.

I searched online for trust seals include the name “trust” in them. I found TRUSTe that provides Privacy Seals and Trust Guard that provides Privacy, Business Identity, and Security Trust Seals. According to the report, these two companies have an edge on other website security verification companies solely because of their names.