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Businesses on average lose about 1.4% of their annual revenues to security incidents associated with cyber-fraud. Further, an estimated 10 million consumers become victims of various identity theft and fraud incidents every year. Fraudsters are using a variety of sophisticated security exploits to compromise consumer credentials. It is not surprising that many consumers now view shopping online as a precarious experience. Many businesses compound this problem by erecting security barriers that not only deteriorate user experience but also erode consumer confidence in their brand. This paper summarizes the salient findings from a research into online consumer behavior and outlines the proper mechanisms for introducing security measures to streamline security and improve end-user experience by taking into account consumers’ attitudes and understanding of online security.