Your personal data safe on the Web: Priceless

Now that the public is all whipped up about data security breaches, it may be that online retailers will be paying the price. A new survey from the Conference Board  says that consumers are more concerned about identity theft, and that concern has made them more wary of performing financial transactions over the Web. The respondents also say they are making fewer online purchases.
According to a Conference Board statement:
"Nearly 70 percent of online users have installed additional security software on their PCs, 54 percent now “opt-out” of special offers, and 41 percent are purchasing less online. Some 27 percent say they have read online privacy statements and 21 percent are using multiple email addresses."
So at least, it's good news that more users are becoming security aware and taking precautions.
Another interesting point made in the survey is that the level of discomfort over security depends on age. Of younger consumers, ages 35 and under, 49% said they were "extremely concerned" about online financial transactions, while for those 55 and over, the number jumped to 63%. But as the statement points out, younger users are more comfortable using the Web and are more confident about protecting themselves online, while older users have accumulated more wealth and thus have a lot more to lose if there  personal information is stolen.
But as my colleague Sharon Machlis pointed out earlier, it doesn't matter whether you make the purchase online or at a department store, it's the use of the credit card that puts you at risk. It's a wake-up call to the credit-card companies that consumers want assurance that their information is safe.  It will be interesting to see how this plays out, and whether consumers re-start an old-fashioned but reliable form of spending, using cold, hard cash.