E-commerce age checks exposing minors to dangerous goods: LexisNexis Risk Solutions.

Position::DATABASE AND NETWORK INTELLIGENCE: E-COMMERCE
 
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New survey uncovers gap in ecommerce age checks exposing minors to dangerous goods, LexisNexis Risk Solutions reveals

78% of ecommerce businesses including retailers said that they are worried about selling age restricted goods or services online to minors;

Over half (61%) of ecommerce businesses use self-certifcation to check their customers' age online, which can be easily faked and result in dangerous products being delivered to underage consumers;

83% of retailers said that they feel that they need to conduct more comprehensive identity verification to mitigate identity fraud.

Today's ecommerce professionals, including small to large UK retailers, are concerned that they do not have adequate technology or processes in place to conduct effective age verification and identity checks online, according to new research released today by LexisNexis[R] Risk Solutions.

The research, which surveyed 200 ecommerce professionals responsible for e-retail activity, found that 78% of ecommerce businesses are concerned about selling age restricted goods or services to minors online due to the age verification methods they currently have in place. These products include cigarettes, alcohol, knives and fireworks, with the results suggesting opportunities for retailers to strengthen existing protection policies.

More than half (61%) of respondents said that they use self-certification (tick box/date of birth entry) to check their customers' age online. This figure was higher among the respondents from larger* ecommerce businesses, 79% said that they still use this method, which is susceptible to dishonest input. Despite the risks with self-certify age verification methods, only 30% of ecommerce businesses use Know Your Customer (KYC) checks via specialist credit check or identity check software.

Worryingly, 83% of ecommerce businesses said that they feel that they need to conduct more comprehensive identity verification to mitigate identity fraud, which is a growing threat for consumers online. Recent statistics from the not-for-profit organisation for financial crime, Cifas, found that victims of identity fraud rose by 57% last year, with 86% of the identity fraud cases committed...

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