Fortunately for consumers, Microsoft has developed a solution to this expanding fraud problem. A new security feature will change the color of the Internet Explorer 7 web-address bar to green if the site is secure and has been verified as legitimate. Normal secure sites will show white, while suspicious sites will show yellow, and confirmed fraudulent sites will show red.

The green address bar will allow customers to have absolute confidence in the security of their transactions. A white bar, while not discouraging to customers, will not help them feel entirely safe.

This feature is turned on by default in Internet Explorer 7 on Windows Vista. Users of Windows XP with IE 7 will see the feature after visiting a verified secure site for the first time. Other browsers, such as Opera and Firefox, are planning identical features.

Merchants who want to be ranked with the green bar will have to meet strict requirements in the form of Extended Validation SSL Certificates (EV SSL). These new secure certificates have a lengthy validation process and will cost about $1500 per year. At this time, only corporations or LLCs will be able to apply. A solution for unincorporated small businesses is being considered, but no definite plans or timeframe exists.

If your business is incorporated, you should consider the $1500 per year EV SSL certificate. While expensive, it could enhance your trustworthiness to potential customers.

If you cannot incorporate or the certificate is too expensive, wait until sales are noticeably affected. In the meantime, consider displaying other kinds of validation seals to help customers feel at ease, such as verification seals from your merchant account provider.

More information on EV SSL from Verisign