Not only is it proving difficult for people to trust the Internet for making purchases, but the very integrity of the Internet executive is coming into question.

Over the past six months security company Kroll Associates carried out 70 background investigations of Internet executives and board members. About 39 per cent - or 27 people - were found to have problems, compared to a typical average of 10 in such cases.

Some of the problems unearthed included violations of Securities and Exchange Commission rules, insurance fraud, undisclosed bankruptcies and even links to organised crime.