[ISN] Retailers Report Sales Bounce Using Security Certificate

From: InfoSec News (isnat_private)
Date: Tue Apr 22 2003 - 22:21:34 PDT

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    http://www.informationweek.com/story/showArticle.jhtml?articleID=8800552
    
    By George V. Hulme 
    Apr. 22, 2003
    
    Sites showing proof of increased Web security say that up to a third
    more people went beyond shopping and actually bought, according to an
    auditing firm.
    
    Can you boost sales on your Web site by promoting your use of tough
    security? Web-site auditing firm ScanAlert argues that the answer is
    yes and says it has the facts to back up that claim.
    
    ScanAlert says it has analyzed the shopping behavior of more than
    300,000 visitors to 11 online retailers. Sites showing "proof" of
    increased Web security enjoyed a 10.5% to 33% boost in converting
    browsers to buyers.
    
    ScanAlert's service, Hacker Safe, does what standard Web-site
    security-scanning software does, only with a twist. Starting at $149 a
    month, the company scans Web retailers' sites for security holes,
    which are often caused by unpatched systems or unnecessary services
    running. If a site is found to be vulnerability-free, it qualifies to
    post the Hacker Safe certification on its site. Retail Web sites are
    scanned daily, and, should a vulnerability show up, they have 72 hours
    to fix the flaw or lose the Hacker Safe designation.
    
    In a test begun in October, half the visitors to participating Web
    sites were shown the Hacker Safe certification, while the other half
    were not.  Online retailer Clubfurniture.com reported a 33% increase
    in buyers among those shown the certification, Binoculars.com improved
    sales by 32%, and CDconnection.com saw an increase of 13%.
    
    "The results surprised me," says Ken Lovett, president of
    CDconnection, which has been selling CDs online since 1990. He also
    notes that a site has to work to display the certification. "You have
    to keep earning the right,"  he says. If a problem is spotted, "you
    get an urgent alert and have to fix it or they'll bounce you."
    
    No automated vulnerability-scanning application can spot all flaws
    that might leave an open door for hackers. But ScanAlert says its
    service will protect consumers from 99.9% of credit-card fraud and
    identity theft caused by hackers.
    
    Analysts aren't so sure. "That's hyperbole," says Eric Ogren, a senior
    analyst with the Yankee Group. But using the service does send a
    message.  "It shows that the retailer is doing much more that other
    retailers and that security is important to them." Ogren says he
    doesn't know of any other vendors providing a similar service.
    
    In the past year, numerous Web sites have been hacked and crucial
    customer data stolen. That has made some people leery about shopping
    online.
    
    Consumer Janell Elyea, who has been buying things from Web sites for
    about five years, says she's cautious. She uses the same credit card,
    which has a modest credit limit, for all online purchases. "I look
    carefully at my billing statement every month," she says. She says the
    Hacker Safe certification would give her some added confidence, but
    not much. "I don't think I'd choose one retailer over another because
    of it," she says.  "There's really no way to make Web sites completely
    safe. I think most already know that the little lock at the bottom of
    the screen doesn't mean much of anything."
    
    Perhaps. But Web sites that see a boost in sales find ScanAlert's
    sales pitch compelling. "Just a 1% boost would have justified the
    expense,"  CDconnection's Lovett says. If such sales increases hold up
    over the long term, more online merchants are likely to see if they
    also can boost sales by boasting of better security.
    
    Elyea says she'll continue to check her credit-card statement each
    month, even from sites sporting the Hacker Safe certification. That's
    a good idea.  ScanAlert's disclaimer reads, in part: "ScanAlert makes
    no warranty or claim of any kind, whatsoever, about the accuracy or
    usefulness of any information provided herein or the security of the
    Website herein rated."
    
    According to ScanAlert, less than 2% of Web browsers bother to click
    on the certification mark to read the disclaimer.
    
    
    
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