Identity Theft Worries: Half of Canadians Using Debit and Credit Cards Are Concerned

Toronto, ONTARIO - A new Ipsos-Reid poll released today finds one-half (50%) of Canadian adults who use both debit cards and credit cards to make purchases are concerned (either "very" or "somewhat") about information being intercepted in transit while they are making purchases via a debit card. Further, 52% of the same people polled express concern about credit card information being intercepted at the point of sale.

Not only is there concern about the potential for information theft at the time of purchase, but a majority of these card users are worried about databases housing card information after the purchase transaction. Over half (54%) state a level of concern about databases housing debit card information, with 58% citing these type of concerns about credit card information.

Yet, at the same time, the Canadians polled are generally confident the Canadian financial services industry can ensure the security and privacy of electronic transfers of information and transactions. In this poll, 65% of those with online access say they are "very" or "somewhat" confident in Canadian financial services providers to safeguard their information.

These findings suggest that, to the extent there are concerns about identity theft and fraudulent use of cards, Canadians are more likely to have issues with companies accepting cards rather than companies issuing the cards. Retailers and other service providers offering the convenience of debit card and credit card transactions may not have the complete confidence of customers when it comes to financial transaction security.

It is worth noting that around the time this survey was conducted there were news reports about cases of identity theft in Canada and elsewhere. These stories may have sensitized Canadians to the issue of identify theft and fraud.

These are the findings of an Ipsos-Reid poll conducted by telephone between June 9th and June 23rd, 2003. These findings are from a poll among 678 adults who use both credit cards and debit cards for purchases. A sample of 678 yields results considered accurate to within 177 3.8 percentage points, 19 times out of 20, of what they would have been had the entire adult Canadian population of credit card and debit users been polled.

Interception of Debit Card Information

Half (50%) of those using debit cards and credit cards for purchases are concerned about interception of debit card information while shopping. 16% report being "very concerned" and 34% say they are "somewhat concerned" about this issue

• Levels of concern are higher in British Columbia (60% combined for "very" and "somewhat") versus 50% and 49% in the Prairie provinces and Ontario respectively. These levels are at 47% in Quebec and the Atlantic provinces.

Interception of Credit Card Information

Half (52%) of those using credit for purchases are concerned about interception of credit card information while shopping. 18% report being "very concerned" and 34% say they are "somewhat concerned".

As noted above for debit cards, levels of concern are highest in British Columbia (62% combined for "very" and "somewhat") versus 54% and 52% in the Prairie provinces and Ontario. These levels are at 46% in Quebec and 50% in the Atlantic provinces.

Security of Debit Card Databases After Transactions

There are levels of concern expressed regarding the databases that house debit card information after a transaction has been made. Over half (54%) of those using debit cards and credit cards for purchases are concerned about the security of information housed in these databases.

• Levels of concern are highest in British Columbia (60% combined for "very" and "somewhat") versus 56% and 54% in the Prairie provinces and Ontario respectively. These levels are at 50% in Quebec and 52% in the Atlantic provinces.

Security of Credit Card Databases After Transactions

Concern about the security of databases that house credit card information after a transaction has been made is at the 58% level. 23% report being "very concerned" and 35% are "somewhat concerned".

• Levels of concern are highest in British Columbia (64% combined for "very" and "somewhat") versus 61% and 56% in the Prairie provinces and Ontario respectively. These levels are at 54% in Quebec and 57% in the Atlantic provinces.

Confidence in Canadian Financial services Industry About Security and Privacy of Electronic Information and Transactions

Almost two-thirds (65%) of those polled express confidence in the Canadian Financial Services industry with regard to ensuring the security and privacy of electronic transfers of account information and financial transactions. 24% report being "very confident" and 41% are "somewhat confident". On the other hand, 17% are "not very confident" and 15% are "not at all confident".

• Confidence levels are highest in British Columbia (70% combined for "very" and "somewhat") versus 52% and 68% in the Prairie provinces and Ontario respectively. These levels are at 65% in Quebec and 67% in the Atlantic provinces.

This information is taken from Ipsos-Reid's 2003 "Dynamics of the Canadian Credit Card Study", a subscription survey conducted annually. The survey is conducted by telephone from Ipsos-Reid's national network of call centres. For more information about this study, please contact David Saffran or Alina Orasanu at Ipsos-Reid by telephone at (416) 324-2900

To view the factum and detailed tables please open the attached PDF files.

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For more information on this news release, please contact:
Ray Kong
Ipsos-Reid
(416) 324-2106