Online Exposure, Offline Uncertainty:

Privacy and Security in a Virtual World

October 21, 2009

Prepared by Penn, Schoen & Berland Associates in partnership with The Chertoff Group

Key Findings
Penn, Schoen & Berland Associates conducted phone interviews with 1,003 members of the general population in the U.S., August 6-13, 2009. Margin of error is +/-3.09%, or larger for subgroups.

1 2 3 4

Americans are highly concerned about the security of their personal data online

Most have little confidence in any institution to keep their information adequately protected

Anxiety over online security splits dramatically along age lines

Young Americans actually more concerned with online security; more likely to trust the federal government to protect their information

Americans are unfamiliar with and concerned about many new technologies
Few realize how many technologies with privacy implications they are already using to in their everyday lives

Americans are willing to accept more limited capabilities in return for greater security
At least in theory, most value security and privacy over power and efficiency
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Americans are Very Concerned about Online Security

Vast majority of Americans concerned about the security of their personal information

Level of concern about online security actually decreases with age

More than 4 in 5 Americans (81% of respondents) are concerned; over 50% are very concerned

85% of population 35-&-under are concerned about online security vs. only 69% of ages 65+ More exposure = more concern? Higher anxiety among younger people may be due to higher familiarity with the Internet in general, and therefore a greater understanding of its risks.
All Male Female <35 35-49 50-64 65+

Generally speaking, how concerned are you about the security of your personal information that is sent over the internet?

TOTAL CONCERNED Very concerned Somewhat concerned TOTAL NOT CONCERNED Not Very Concerned Not at all concerned Dont Know

81 54 27 16 8 8 3

79 48 31 17 7 10 5

83 60 23 15 9 6 2

85 56 29 14 9 5 1

84 57 27 14 7 7 2

80 53 27 15 7 8 4

69 45 24 23 9 14 8
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What are Americans afraid of online?

Greatest fears center around active threats: identity theft and hacking

Lowest fears are of accidental theft or government and corporate malfeasance

Why are you concerned about the security of your personal information that is sent over the Internet?

60 50 40 30 20 10 0
Fear of Identity I think hackers I have heard I do not think it Theft will always find about data is possible to a way to steal being hacked or keep data data inappropriately 100% secure accessed in the news I know I do not trust I do not trust someone who corporations to the government has had their keep to keep data hacked or information information inappropriately secure secure accessed

All <35 35-49 50-64 65+

Trust in institutions generally low, mirrors off-line confidence

Most tangible offline institutions appear to be most trusted online

The more specific the institution, the more Americans trust them

Americans trust regional banks and healthcare providers most, least trust in online-only establishments such as email providers and online brokerages Internal Revenue Service or Social Security Administration garnered higher confidence than either the federal government or the private sector in general
How much confidence do you have in the following organizations to keep your information secure? Showing Great Deal + Somewhat confident

90 80 70 60 50 40 30 20 10 0

Older Americans trust private sector, under-35s government

Trust levels split cleanly along age lines

For every sector, young Americans have greater faith in the federal government to protect them and their data while older Americans prefer private sector solutions
Who would you trust more to ensure proper privacy standards for smart grids? Utility Companies <35 45 41 29 35-49 50-64 65+ 47 62 49 62 Federal Government 48 30 35 20

Who would you trust more to ensure proper privacy standards for location-based advertising? Private Sector <35 35-49 50-64 65+ 32 48 46 51 Federal Government 61

Who would you trust more to ensure proper privacy standards for biometric identification? Private Sector <35 35-49 50-64 65+ 34 41 40 44 Federal Government 59 50 44 36

Who would you trust more to ensure proper privacy standards for electronic medical records? Private Sector Healthcare Providers <35 35-49 50-64 65+ 48 60 62 69 Federal Government 47 32 27 31
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Understanding of New Technologies

Americans are by and large unfamiliar with many of the following new technologies, yet very concerned about the privacy and security implications they carry with them.

Americans have serious security concerns about each new technology tested, but particularly cloud computing
To what degree are you familiar with the following concepts? Familiar Unfamiliar 87 29 67 29 13 84 68 55 70 32 How concerned would you be about the security of your personal information if it was stored via the following? Concerned 85 78 75 70 43 20 24 28 Not concerned 9
Cloud Computing Location-based Advertising Electronic Medical Records Biometrics Smart Grid

Cloud Computing Location-based Advertising Electronic Medical Records Biometrics Smart Grid

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Bottom Line: Low Familiarity, High Concern

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The Knowledge Gap in Practice

Many Americans dont understand how exposed they already are to technologies with privacy implications

Few appear to realize they are already exposed to cloud computing through their web-based email, and location-based ads through sites like Facebook and MySpace As a result most Americans are failing to take even the most fundamental steps to safeguard their information, like regularly changing passwords, leaving them extremely vulnerable to attack Of Americans believe theyve never used cloud computing services

87% 70%

BUT

65% 41%

Of Americans already use cloud services such as web-based email

Of respondents claim zero familiarity BUT with location-based advertising

Have received online ads that reference their approximate geographic location

Americans choose security over power, capability

Americans believe they will trade more limited capabilities for greater security

Has major implications for the future of tech companies, especially those whose focus has traditionally been on cutting-edge innovation, not communications. Security (or the appearance of it) could soon trump innovation for the American consumer
Between the peace of mind of knowing your information is secure, and the convenience of online shopping and banking, I choose. Peace of mind over online shopping, banking 58 48 59 60 69 Convenience of online purchases, even with slight risk 35 51 36 31 15 17 Dont Know

When it comes to new computing technologies, which would you rather have? Lower risk, Fewer capabilities
All <35 35-49

Greater risk, Greater capabilities 74 73 78 72 11 10 16 22

Dont Know 10 5 3

All

1 <35 5 9
35-49

18 17 23

50-64 65+

50-64 65+

67

More on Online Security in America

For more information about this survey and issues of online security, please contact:

Penn, Schoen & Berland Associates, is a global research-based consultancy specializing in messaging and communications strategy. For more about PSB Contact: Beth Lester blester@ps-b.com (202)962-3042

The Chertoff Group is a global security and risk management advisory firm that assists corporate and government clients in addressing threats related to terrorism, fraud, cyber security, border protection, and supply chain security. For more about The Chertoff Group Contact: Russ Knocke russ.knocke@chertoffgroup.com (202)262-4976

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