More needs to be done to protect individuals from crime on the internet, peers say.
Today's House of Lords science and technology committee says the government, internet service providers and hardware and software managers are undermining confidence in the world wide web by ignoring the increasing victimisation of internet users.
Peers call on the state to step in and remove some of the responsibility for security on individuals themselves. Lord Broers, the committee's chairman, has warned that if they fail to do so "the internet could be destroyed".
"You can't just rely on individuals to take responsibility for their own security. They will always be out-foxed by the bad guys," he said.
"We feel many of the organisations profiting from internet services now need to take their share of the responsibility. That includes the IT industry and the software vendors, the banks and internet traders, and the internet service providers."
While admitting that it would be difficult for legislation to solve the problem, he said the government could provide incentives for the private sector to "up their game".
A Home Office spokesperson said the government would respond to the report after its publication.
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