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Hesitant about Internet security has been a major obstacle to consumers’ acceptance of electronic commerce. The objective of this paper is to assess how consumers in Pacific Asia perceive Internet security and how much they know about the topic. A total of 182 university students from Australia and Hong Kong SAR participated in this study. The results show that respondents in these two Pacific Asia regions had similar level of e-literacy. Both groups were unsure about Internet security and their selfassessed knowledge of Internet security was relatively low. A closer analysis of the data suggests that respondents have a tendency to over-estimate their understanding of the Internet security.