Almost a third of European citizens lack confidence in using the internet for financial transactions.
A survey of 27,000 citizen across EU member states, commissioned by the European Commission (EC), reported that internet users are concerned about cyber security.
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According to the study, 89% avoid disclosing personal information online and 74% agree that the risk of becoming a victim of cyber crime has increased in the past year.
Cecilia Malmström, EU commissioner for home affairs, said: "While ever more people are making the most out of the Internet and benefit from the digital economy, it is not surprising that security of personal information and online payments top the list of our concerns.”
The survey found that 12% of internet users across the EU have already experienced online fraud and 8% have fallen victim to identity theft.
However, 53% have not changed any of their online passwords during the past year.
"Cyber criminals must not be allowed to disrupt our use of the internet. The more we know about the risks and how to protect ourselves, the more we can truly maximise our digital lives", Malmström said.