Toronto, Oct 15 - Identity theft and online fraud are likely to harm e-business prospects in the long run, warn experts, who are asking legislators to strengthen laws against cyber crime.

Susan Sproule and Norm Archer of McMaster University, Ontario, who conducted the study, say identity theft and fraud are an increasing concern for consumers who interact with online businesses routinely.

"These findings are (also) of concern to businesses and governments," Sproule says, "since, if consumers stop doing business online, the productivity benefits of e-business will not be realised."

The team's model of cyber crimes has now defined ID theft and fraud as two distinct but related problems, which could help legislators frame more stringent laws, and could also help educate the unwary about how their personal data might be misappropriated.

Fishing for logins is not the only problem. Credit card skimming, insider theft, and counterfeiting of digital information, and ID "trafficking" are also on the increase.

All of these types of fraud are costly for the individuals involved both financially and often in terms of the time needed to clear their name when illegal use has been made of their personal details.

In assessing credit card frauds, existing bank accounts, new accounts, and other frauds, the researchers find that one in five have stopped or reduced the amount of shopping they do online.

Nearly 10 percent people have ceased online banking, or have kept it to a minimum because of fraud worries.

The study is slated for publication in the International Journal of Business Governance and Ethics. (IANS)