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Security Flaws Hurt E-Commerce Image. 2005-06-24, HostMan.biz Technology research and advisory firm Gartner (gartner.com) reported on Thursday that escalating cases of lost consumer data and disclosures of unauthorized access to sensitive personal data has had a serious effect on the public's perception of online commerce. A Gartner survey of 5,000 US adults revealed that phishing attacks rose by double-digit rates last year in the United States. In the twelve months ending in May 2005, an estimated 73 million US adults said they definitely had, or think they had, received an average of more than 50 phishing emails in the past year. The number of consumers receiving phishing attack emails increased 28 percent in the 12 months ended in May 2005 compared with 12 months ended in April 2004, according to the Gartner data. In last year's survey, an estimated 57 million US adults reported that they definitely had, or think they had, received a phishing attack email. 2.4 million online consumers said they have lost money as a direct result of phishing attacks, while approximately 1.2 million of them lost $929 million during the year preceding the survey. Survey participants mentioned that most of the money stolen was reimbursed by banks and credit cards.

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