Assurance Seals: Security and Privacy Seals

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Assurance Seals: Security and Privacy Seals

ACC 626, Section 2

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1.0 Introduction

This paper will explain what an online seal represents and how it serves the e-commerce industry. It first presents the types of seals, the perceived value to customers and then analyzes their advantages and disadvantages in the web assurance industry. Finally, this paper will offer an outlook on the value of seals and provide some guidance for those online businesses that choose to display seals on their e-commerce websites. The most significant conclusion is that if businesses have both privacy and security seals displayed, they compromise the value of the security seal.

2.0 Trust Seals

E-commerce assurance seal services are defined as web assurance services (WASSs) for internet e-retailers’ sites provided by third-party. Web Trust, VeriSign, Trustee, and BBB Online are among the more popular ones [3]. The third-party web assurance seal is one

strategy where vendors can signal trust-worthiness to the online shopper, especially for smaller vendors. [1] The online symbols are usually displayed on the front page of the vendor’s website and vendors see the investment as an enhancement of trustworthiness to the consumer.

However, that trust association may be difficult as seals was a relatively new concept introduced in 1994. [2]

There are many types of seals with various ways in promoting this trust. Some are single-function whether it be privacy or security (e.g. TRUSTe is for privacy); while others are multi-functional; offerring seals (e.g. Trust Guard) covering many different areas. [1]

Some seals focus on privacy of customer’s disclosed information, others on the safety of customer’s transaction, while more guarantees product quality and/or service.

Three functions are most commonly served by these web assurance seals: transaction security (e.g. VeriSign), consumer privacy (e.g. TRUSTe), and transaction integrity (e.g. BBBOnLine Reliability) [1]; these will be the focus of this paper.

2.1 Privacy versus Security Seals

Security and privacy are two related but different concepts.

Privacy assurance is a promise from the vendor to the consumer to not share consumer’s personal information with a third party. [7] This is a significant concern in social

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networking sites given the insight that these data may provide; mass data trends may open doors to lucrative marketing using demographics.

On the other hand, security assurance has the objective of making online transactions safer through the use of encryption (SSL); it stops the unauthorized access to the private information without the consent of either the consumer or vendor. [7] This prevents the use of credit data for personal or nefarious gains by the hacker.

Seals that focus on privacy usually ensure compliance with privacy policy which usually includes disclosure of how personally identifiable information is collected and used, how users can choose to opt out, and how companies employ security measures to safeguard the data. [2]

Seals that focus on security usually ensure compliance with the most current safety measures, technologies and procedures to protect customer information from unauthorized access. [2]

From a sales perspective, security is more important to the user than privacy because it can directly affect the user if personal credit card information is intercepted by an unauthorized third party in the case of identity theft; this is the reason consumer may be willing to pay a small premium to ensure that their personal transactions are not. [7]

Thus, research studies show that some online customers are willing to purchase from vendors that display more reputable seals, even if more expensive (as discussed below).

2.2 Seals’ Standards

Seal programs offered by third party seal providers usually advocate a set of standards and principles, including privacy, security and reliability, which vendors must conform to in order to display the seal. [2]

Third party seals can be differentiated using four criteria: seal focus, rigor, method of administration, reputation of the seal provider [2]

Seals are not of equal standards as some offer more security than others and thus often seen as more reputable, such BBBonline, Webtrust, and TRUSTe. The principles, method of administration, and purpose of the seals can also be differentiating factors. [2] WebTrust and BBBOnline Privacy Program seals emphasize data security while TRUSTe operate with an emphasis on privacy principles that comply with fair information practices. [2]

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2.3 Application Process

Specifically, the application process affects the quality of the seal. [2]

Methods range from pay-for-service to audit processes that can be onerous to keep up; some seals are self-administered while others require independent third-party administration [2]. Below are examples of seal providers to show the range of seal qualifying processes available:

Netcheck Commerce Bureau is one of the easiest obtainable seals. Members have to agree to a set of terms relating to ethical business practice, fill out an application agreeing to a set of criteria and pay $195 annual dues. [2]

Webtrust, on the other hand, has one of the most rigorous and expensive processes. It was developed jointly by the accounting standard setting bodies, CICA and AICPA. The process involves a thorough audit process by CAs and CPAs that must be repeated every six months to ensure continued compliance. [2] This makes it a very expensive seal; the value of which can be questionable if the value is not communicated adequately to the consumer (as discussed below).

TRUSTe is more reasonably priced and more popular than most seals because of the affordability and the recognition among online consumers.

2.4 Cost Structure

The cost structure may also differ among the various seal providers. Some are for fixed annual fees, while others can be based on factors such as the company’s annual revenue. [1] The cost of providing privacy and security seals can vary depending on the size of the company and the level of assurance obtained. These costs include payment to seal providers, payment to lawyers to help write a policy or deal with breaches when they occur, cost of compliance with the requirements of the seal, and opportunity cost of forgone sale of information [7]

Given the range in rigor of standards and application process found in different types of seals, the cost of obtaining and maintaining the seals must be justifiable in order for the seal to be both valuable to the consumer and the vendor. Webtrust did not succeed in the business-to-consumer industry because it was not very attractive to vendors given the high cost to maintain the seal and low recognition among average online shoppers. Vendors often opted for the more reasonably priced seals even if that means the quality of the seal must be compromised. [2]

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3.0 Perceived value

3.1 Creation of trust

One of the key challenges in expanding e-commerce activity is how to build trust with customers and alleviate their fear of risks related with online transactions. [1] As discussed above, the association with trust is difficult considering its inception was in 1994. The growth in the online retailing market has been phenomenal since then and the popularity of the seal certification system has grown with the industry as the hurdle for secure online shopping prevails. [4]

Many consumers still consider online purchases to be riskier than a physical visit to the store, especially among the older generation. Purchasing through the Internet is also associated with the majority of the online fraud complaints filed with the FBI’s Internet Crime Complaint Center. [1] Complaints include problems such as non-delivery of items and identity theft involving credit cards. [1]

However, when buyers do make purchases, they are more willing to buy from a vendor that displays a reputable and recognizable seal [2]. Sizable body of evidence showed that VeriSign is the most well-known seal among an average online consumer, AOL Certified Merchant Guarantee most highly ranked in promoting trust for all products and BizRate, the least recognized. [4]

An important finding is that most consumers use online payments to carry out online shopping and banking [3]. The research showed that contrary to popular beliefs, there is no direct relationship between perceived risk and the intention to adopt online payment methods. This explains why customers may still be willing to use online services in the absence of total protection. [3] This can explain why seals with standards too high eventually cannot compete in the B2C market if the higher standards are not bringing in more sales revenue via price

premium or higher consumer confidence, if at all exist.

3.2 Effectiveness of different types of seals

One would expect that consumers would stop using online payment methods if they ever experienced a breach in security. [3] There was a consensus that most consumers are not familiar or do not understand the meaning of the seals; only 28% correctly identified that “these seals guaranteed that the website guarantees their business transactions and information”. In fact, 59% wrongfully thought they guaranteed product quality [3]. The seals that are mostly

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displayed on e-retailers guarantee online shopping security is enhanced not the actual product being promoted. In other words, the seals effectiveness are enhanced when they are confused with quality guarantees.

In addition, another study shows that consumers who are familiar with the WebTrust seal and its high standards through either advertisement or professional circles have higher security expectations and more willingness to buy (WTB) than an average consumer. [4]

Also, depending on the product a vendor sells, studies show that the reputation of a seal may help. One study showed that for higher price tagged items, such as those from the ‘look and feel’ category, the more popular TRUSTe and VeriSign seals significantly increased and showed a significant positive influence of the seal on the WTB of consumers whereas seals had no effect on commodity products. [4]

4.0 Pros

4.1 Ease of Recognition of Vendor Credentials

Consumers turn to third party seal programs to verify credentials of online vendors. [2] One of the main advantages of online seals is their ability to quickly and visually communicate a level of standard to consumers, whether or not consumers respond to it is entirely another case. Web assurance seals, those that guarantee security and privacy, were a critical factor that influenced consumer’s decision to use online payment methods [3]. By having an assurance seal on the business website, consumers are more likely to spend less time evaluating the integrity of the vendor; and more time on the product offering of the online retailor.

4.2 Signal of Trustworthiness of Online Vendors

Web assurance seals play an important role in increasing the perceived trustworthiness of vendors for consumers who perceive a high risk in conducting online purchases. One study demonstrates that there is high positive correlation between the use of web assurance seals and users’ intention to pay online. [3] This means that by having an assurance seal, the customer base of the business is larger than if no seal were in place at all. This is especially helpful for start-up websites that has no reputation yet.

In the presence of a web assurance seals, consumers are more willing to provide personal information in an online transaction and perceived less risk of credit card fraud. [3]

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4.3 Brand Enhancement

Web assurance seals are also used as a co-branding strategy to signal to consumers that the site has achieved a certain high standard [3]. For example, many online brokerage sites often use security seals to advertise its service to potential customers, highlighting the high level of security in their trading platform.

4.4 Role of Risk Reliever

Assurance seals may also play the role of ‘risk reliever” [3]. In other words, the presence of an assurance seal on a website is essential form of guarantee to the customers, similar to other promises such as on-time shipping and query response. The customers will, hence, be more likely to purchase from the website given the guarantees. However, part of this may be due to misunderstanding on part of the customers regarding what a seal provides – customers often mistook assurance seals as a guarantee of product quality, as described previously. [3]

4.5 Price Premium Seal Protected Websites

Firms that display security seals charge a higher price for their product than competitors without a seal. However, the premium disappears when many vendors are all sealed. [7] In other words, security seals positively affect prices only when it is a differentiating factor as compared to other online competitors. [7]

However, many other studies find that privacy and quality of seals do not have a direct relationship with a price premium [7]. Therefore, it may be disputable whether a price premium actually exists on websites that uses assurance seals. Part of the reason for the lack of

premium is because privacy is not as vitally important as originally thought as discussed above; security is more important. [7]

5.0 Cons

5.1 Weakening Effects of Seals when Combined

The privacy assurance function, when combined with other security assurance, can have less impact on consumers’ initial trust on a per-seal basis. [1] This means that customers can become desensitized when there are too many seals displayed simultaneously on a website.

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Privacy seals can enhance consumer trust only when the security assurance related seals are not present. In other words, the seals do not strengthen each other and sometimes weaken the impact on consumer trust when presented together. [1]

Multiple single-function seals may not be more advantageous than an assurance seal that covers multiple areas, if one considers the additional amount spent on multiple seals and the weakening effect on consumer trust when the multiple seals are together. [1] This means that businesses should purchase a single seal that covers multiple areas required rather than spending on multiple seals to get the same level of coverage.

5.2 Potential Breach of Customer Trust

Most of the time customers would think to purchase only from trustworthy websites with a proven reputation. This becomes a disadvantage for most consumers. Therefore, a past security breach in a particular website often results in that website to never be used by the consumer again. Similarly, since a seal represents all its e-retailors that use the seal on their website, if a potential e-retailor breaches a seal standard, it may significantly impact the reputation of that seal for all the vendors who carry that seal.

For example, ControlScan, a seal program that provided both security and privacy seals, was found guilty of misleading consumers concerning the seal’s monitoring practices. Websites that displayed the seal were not reviewed or audited periodically to ensure compliance with the stated assurance of each seal that it provided. [5]

Consumers were deceived by the frequency of verification of sites that displayed the seal and even companies with little to no verification were provided with the seal. All sites that displayed the seal were told to remove it. [5] This would significantly decrease the consumer’s confidence in other website that uses the ControlScan seal, even if, other websites followed the standard. A more a widespread implication is that the credibility of all seals in general are

hampered when news of a security breach reaches the front-page of a national news distributor.

5.3 Information Asymmetry

If consumers are unfamiliar with the role of seals, their effectiveness can suffer from a “lemon problem” - that is a problem of information asymmetry. This occurs when consumers are not knowledgeable about the exact certification process that underlies each of the seal. In other words, if users are not able to distinguish the seals that require a rigorous verification process from those that are weak, then seals do not provide useful information to users and users remain distrustful towards the site. [7]

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5.4 Lack of Guarantee

Even if a web site displays a seal certifying that it is hack proof, it may not always be immune to security breaches due to lack of complete assurance. [9] Obtaining a seal merely means that a business is able to pass certain predesigned monitoring tests on an ongoing basis; there is no guarantee that a security breach would not occur in the future. For example,

geeks.com had a McAfee Inc. Hacker Safe certification but a security breach still occurred, as a result, personal and financial information of customers were compromised. [9]

6.0 Implications

Given the diverse market of web assurance seals, it is very important for businesses to select the seals carefully, especially if the business is small in size. [1] Web assurance seals offer different areas of coverage and their cost structures can also differ significantly. Selection of the seals should be based on a clear cost-benefit analysis that considers the resources and time required to obtain the seal, and the potential benefit that the seal can bring to the website. For a start-up, this should includes a review of its monitoring policies and annual fixed fees.

After obtaining the seals, businesses should also make sure that its customers are educated about the seals, so that the return-on- investment (ROI) in the seals can be

maximized. Specifically, the procedures associated with granting and reviewing as well as seals coverage must be accessible and easily understood by the consumer in order to build trust for the seal. [2] This ensures that the longevity of customer’s trust in the seals can be maximized. [2]

Additionally, since consumers’ intention to shop online is not significantly affected by having had previous shopping experience [4], all businesses should attempt to obtain web assurance seals on its website, even if it has had a good reputation in the past – it’s never too late to adopt assurance seals.

The choice of seals should also depend on the type of goods and services that the website offers. Research has shown that perceived risk to transact online is different for

different products. [4] This means that businesses should invest more on assurance seals if the goods and services that they offer through the website is of high dollar amount, or is perceived to be luxury items. This is done to increase the likelihood of generating a sale from website’s visitors for the high value item as more focus is on making a transaction than volume of sales.

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And lastly, since consumers who are familiar with a trust-promoting seal were more likely to make purchases from unknown sites that bear the familiar seals, seal providers should better market and advertise their seals in order for them to be more trust-promoting. [4]

7.0 Conclusion

Given the significant increase in Internet commerce in recent years, the role of customer trust will become increasingly important. One way of enhancing the consumer trust is by

providing an assurance seal on the website. This paper has provided an overview of the web assurance seals market that exist today and the advantages and disadvantages of these seals to online businesses. By following the provided recommendations and focus on the critical implementation factors discussed, most businesses should be able to obtain a net benefit by investing on an online seal program to the website.

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Annotated Bibliography

[1] The effects of Web assurance seals on consumers' initial trust in an online vendor: A functional perspective

Hu, Xiaorui, et al. "The Effects of Web Assurance Seals on Consumers' Initial Trust in an Online Vendor: A Functional Perspective." Decision Support Systems 48.2 (2010): 407-18. . SCHOLARSPORTAL. 10 June 2011.

http://journals2.scholarsportal.info.proxy.lib.uwaterloo.ca/details.xqy?uri=/01679236/v48i0002/407_te owasaovafp.xml

While US e-commerce sales are growing rapidly, they still account only for 3.3% of retail sales in US. One of the key challenges in expanding e-commerce activity is how to build trust with customers and alleviate their fear of risks related with online transactions.

Many consumers still consider online purchases to be riskier than a physical visit to the store. Purchasing through the Internet is also associated with the majority of the online fraud complaints filed with the FBI’s Internet Crime Complaint Center.

Complaints include problems such as non-delivery of items and identity theft involving credit cards. The third-party Web assurance seal is one strategy where vendors can signal trust-worthiness, especially for smaller vendors.

There are three functions often served by the Web assurance seals: transaction security (e.g. VeriSign), consumer privacy (e.g. TRUSTe), and transaction integrity (e.g. BBBOnLine Reliability)

The privacy assurance function, when combined with other security assurance seals, can have les s impact on consumers’ initial trust on a per-seal basis.

Privacy seal can enhance consumer trust only when the security assurance related seals are not present. In other words, the seals do not strengthen each other and sometimes weaken the impact on con sumer trust when presented together.

Those adopting Web assurance seals should be cautious when using both the privacy and other security seals because the privacy seal weakens the effect of the latter.

Businesses, in particular, those smaller in size, will need to choose carefully among the many Web assurance seals available.

Some are single-function (e.g. TRUSTe is for privacy); others offer assurance seals (e.g. Trust Guard) covering many different areas.

The cost structure also differs among the seals. Some are for fixed annual fees, while others can be based on factors such as the company’s annual revenue.

Multiple single-function seals may not be more advantageous than an assurance seal that covers

multiple areas, if one considers the additional amount spent on multiple seals and the weakening effect on consumer trust when the multiple seals are together.

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Cook, David, and Wenhong Luo. "The Role of Third-Party Seals in Building Trust Online." e-Service Journal 2.3 (2003): 71-84. . SCHOLARSPORTAL. 10 June 2011.

http://resolver.scholarsportal.info.proxy.lib.uwaterloo.ca/resolve/15288234/v02i0003/71_trotsibto&for m=pdf&file=file.pdf

Consumers turn to third party seal programs to verify credentials of online vendors.

Third party seal programs usually advocate a set of standards and principles, includ ing privacy, security and reliability, which vendors must conform to in order to display the seal.

Types of third party seals

Seals are not of equal standards as some offer more security than others, such BBBonline, Webtrust, TRUSTe. The principles, method of administration, and purpose of the seals can also be different. Third party seals can be differentiated using four criteria:

1) Seal focus 2) Rigor

3) Method of administration 4) Reputation of the seal provider

Seal focus

WebTrust and BBBOnline Privacy Program seals emphasize data security while TRUSTe operate with an emphasize built on privacy principles that comply with fair information practices.

Seals that focus on privacy usually ensure compliance with privacy policy which usually includes

disclosure of how personally identifiable information is collected and used, how users can choose to opt out, and how companies employ security measures to safeguard the data.

Seals that focus on security usually ensure compliance with the most current safety measures, technologies and procedures to protect customer information from unauthorized access.

Rigor and Method of Seal Administration

The application process also affects the quality of the seal.

Methods range from pay-for-service to demanding audit process; some seals are self-administered while others require independent third-party administration

#1: Netcheck Commerce Bureau is one of the easiest obtainable seals. Members have to agree to a set of terms relating to ethical business practice, fill out an application agreeing to a set of criteria and pay $195 annual dues.

#2: Webtrust, on the other hand, has one of the most rigorous and expensive processes, it was developed jointly by the accounting standard setting bodies, CICA and AICPA. The process involves a thorough audit process by CAs and CPAs that must be repeated every six months to ensure continued compliance.

Reputation of Seal Provider

Buyer is more willing to buy from a vendor that displays a reputable and recognizable seal

The procedures associated with granting and reviewing as well as seals must be accessible and easily understood by the consumer in order to build trust for the seal.

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Most consumers who do bypass this step usually associate longevity with trust. However, that may be difficult as seal was a new concept that was introduced in 1994. Thus, expertise is not required in order to appreciate the higher quality seals.

[3] Facilitating the adoption of e-payment systems: theoretical constructs and empirical analysis Özkan, Sevgi, Gayani Bindusara, and Ray Hackney. "Facilitating the Adoption of e -Payment Systems: Theoretical Constructs and Empirical Analysis." Journal of Enterprise Information Management 23.3 (2010): 305-25. . SCHOLARSPORTAL. 10 June 2011.

http://resolver.scholarsportal.info.proxy.lib.uwaterloo.ca/resolve/17410398/v23i0003/305_ftaoestcaea &form=pdf&file=file.pdf

This article explores the critical decision factors that compel a consumer to trust electronic payment systems

The first finding is that most consumers use online payments to carry out online shopping and banking Web assurance seals, among security and advantages, were a critical factor that influenced consumer’s decision to use online payment methods

Web assurance seals play an important role in increasing the perceived trustworthiness of vendors for consumers who perceive a high risk in conducting online purchases. This study demonstrates that there is high positive correlation between the use of web assurance seals and users’ intention to pay online. The research showed that contrary to popular beliefs, there is no direct relationship between perceived risk and the intention to adopt online payment methods. This explains why customers may still be willing to use online services in the absence of total protection.

Consumers would stop using online payment methods if they ever experienced a breach in security.

Assurance seals and consumer’s willingness to transact online

There was a consensus that most consumers are not familiar or do not understand the meaning of the seals; only 28% correctly identified that “these seals guaranteed that the website guarantees their business transactions and information”. In fact, 59% wrongfully thought they guaranteed product quality

Assurance seals and consumer’s perceived risk of online transaction

In the presence of a web assurance seal, consumers are more willing to provide personal information in an online transaction and perceived less risk of credit card fraud.

This seal is also used as a co-branding strategy to signal to consumers that the site has achieved a certain high standard, however, the popularity of such logos has not increased.

Assurance seals play the role of ‘risk reliever”. However, part of this may be due to the quality implication as discussed above

E-commerce assurance seals services are defined as web assurance services (WASSs) for internet e-retailers’ sites by third-part: Web Trust, VeriSign, Trustee, and BBB Online are among the more popular ones

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[4] Myth or Reality: Effect of Trust-Promoting Seals in Electronic Markets

Hu, Xiaorui, Zhangxi Lin, and Han Zhang. "Myth or Reality: Effect of Trust-Promoting Seals in Electronic Markets." Texas Tech University. 2001. Web. 10 June 2011.

http://zlin.ba.ttu.edu/papers/published/WITS01-trust.pdf

Consumers’ intention to shop online is not significantly affected by having had previous shopping experience

Research shows that consumers who are familiar with the WebTrust seal and understand its meaning through advertisement have higher security expectations and more willingness to buy than other consumers (with a relatively unknown reputation).

VeriSign is the most well-known seal among an average online consumer. There was significant positive influence of the seal on conusmer’s willingness to buy, whereas a seal such as BizRate had no effect on consumer’s WTB. However, AOL Certified Merchant Guarantee was ranked #1 in promoting trust for all products.

Research also shows that perceived risk to transact online is different for different products. Results showed that for higher price tagged items, such as those from the ‘look and feel’ category, TRUSTe significantly increased the WTB of consumers whereas it had no effect on commodity products. Consumers who are familiar with a trust-promoting seal were more likely to make purchases from unknown sites that bear the familiar seals. Thus, seal providers should better market and advertise their seals in order for them to be more trust-promoting.

[5] Online Security Certification Company Settles Claims That It Misled Consumers Anonymous, . "Online Security Certification Company Settles Claims That It Misled

Consumers. " Computer and Internet Lawyer 1 May 2010: ABI/INFORM Global, ProQuest. Web. 10 Jun. 2011.

http://proquest.umi.com.proxy.lib.uwaterloo.ca/pqdlink?did=2014043041&sid=5&Fmt=3&clientId=167 46&RQT=309&VName=PQD

ControlScan, a seal program that provided both security and privacy seals, was found guilty of

misleading consumers concerning the seal’s monitoring practices. Websites that displayed the seal were not reviewed or audited periodically to ensure compliance with the stated assurance of each seal that it provided.

Consumers were deceived by the frequency of verification of sites that displayed the seal and even companies with little to no verification were provided with the seal. All sites that displayed the seal were told to remove it.

[6] Qualys introduces website scanning service

"Qualys introduces website scanning service. " Telecomworldwire 2 Mar. 2010: ABI/INFORM Trade & Industry, ProQuest. Web. 10 Jun. 2011.

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Qauly’s, a provider of IT security risk and compliance management solutions, has launched a new service called GO SECURE. GO SECURE is an automated audit program that tests business’ websites for malware, network and application vulnerabilities and SSL certification validation.

If successful upon test, a Qualys SECURE seal will be generated to be displayed on the vendor’s website to show that the site is ‘covered by a proactive security programme’.

The annual fees are USD $995 per website.

[7] Three Essays in Voluntary Regulation by Firms

Hammock, M.. Three Essays in Voluntary Regulation by Firms. Diss. Emory University, 2010. Dissertations & Theses: Full Text, ProQuest. Web. 10 Jun. 2011.

Firms that display security seals charge a higher price for their product than competitors without a seal; however, the premium disappears when many vendors are all sealed

Market failure may result if online businesses are not able to provide assurance to consumers that their personal information is safe

Security and privacy are two related but different concepts. Privacy assurance is a promise from the vendor to the consumer to not share consumer’s personal information with a third party.

On the other hand, security assurance makes online transactions safer through the use of encrypti on (SSL); it stops the unauthorized access to the private information without the consent of either the consumer or vendor.

The cost of providing the seal of privacy and security can vary depending on the size of the company and the level of assurance obtained. These costs include:

1) Payment to Seal Providers

2) Payment to lawyers to help write a policy or deal with breaches when they occur 3) Cost of compliance with the requirements of the seal;

4) Opportunity cost of forgone sale of information Findings:

- If consumers are unfamiliar with the role of seals, their effectiveness can suffer from a lemon problem – if users are not able to distinguish the seals that require a rigorous verification process from those that are weak, then seals do not provide useful information to users and users remain distrustful towards the site.

- Privacy and quality seals do not have a direct relationship with a price premium Security seals positively affect prices.

Discussion

Privacy is not as vitally important as originally thought – therefore, no premium is noticed

Security is more important to the user than privacy because it can directly affect the user if personal credit card information is intercepted by an unauthorized third party in the case of identity theft; this is the reason consumer may be willing to pay small premium to ensure that their personal transactions are not compromised

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[8] Online privacy and security practices of the 100 largest US nonprofit organizations Hoy, M., and J. Phelps. "Online privacy and security practices of the 100 largest US nonprofit organizations. " International Journal of Nonprofit and Voluntary Sector

Marketing 14.1 (2009): 71. ABI/INFORM Global, ProQuest. Web. 10 Jun. 2011.

The NPO web sites were more likely to display information on privacy disclosure and privacy seal. The study of 100 largest US NPOs showed that NPO sites on average collected more personal information from users than commercial sites. More interestingly, and somewhat disconcerting is that, NPO sites posted personally identifying information of people not pertaining to employees. Thus, it discusses the importance of privacy and the symbol of privacy seals in the NPO community.

[9] 'Hacker Safe' Web Site Suffers Security Breach

Vijayan, J.. "'Hacker Safe' Web Site Suffers Security Breach. " Computerworld 14 Jan. 2008: ABI/INFORM Global, ProQuest. Web. 10 Jun. 2011.

Even if a Web site displays a seal certifying that it is hack proof, it may not always be immune to security breaches.

For example, geeks.com had a McAfee Inc. Hacker Safe certification but was breached, and personal and financial information of customers were compromised.

Assurance Seals: Security and Privacy Seals