Only 30% of consumers believe companies are taking their personal data protection very seriously 58% of consumers fear they will be victims of an online data breach 66% would be unlikely to do business with organizations responsible for exposing ...
Only 30% of consumers believe companies are taking their personal data protection very seriously
58% of consumers fear they will be victims of an online data breach
66% would be unlikely to do business with organizations responsible for exposing financial and sensitive information
Amsterdam, Jan 17, 2017 - Gemalto, the world leader in digital security, today released the findings of its 2016 Data Breaches and Customer Loyalty report, revealing that consumers put responsibility for protecting their personal data firmly at the hands of the organizations holding their data - and not themselves.
According to the 9,000 consumers surveyed in Australia, Benelux, France, Germany, Russia, UAE, Saudi Arabia, India, Japan, United Kingdom, and United States, 70% of the responsibility for protecting and securing customer data lies with companies and only 30% of the responsibility with themselves. Yet, less than a third (29%) consumers believe companies are taking protection of their personal data very seriously. This comes as consumers are becoming increasingly fearful of their data being stolen, with 58% believing it will happen to them in the future. More than 4.8 billion data records have been exposed since 2013 with identity theft being the leading type of data breach accounting for 64% of all data breaches.
Where consumers see most risk
Despite becoming more aware of the threats posed to them online, only one in ten (11%) believe there are no apps or websites out there that pose the greatest risk to them and consumers are not changing behavior as a result:
- 80% use social media, despite 59% believing these networks pose a great risk
- 87% use online or mobile banking, with 34% believing they leave them vulnerable to cybercriminals
- Consumers are also more likely to shop online during busy commercial periods such as Black Friday and Christmas (2% increase online versus -2% decrease in store), despite 21% admitting the threat of cybercrime increases a lot during these periods
Consumer attitudes on data breaches
Nearly six in ten (58%) consumers believe they will be a victim of a breach at some point, and organizations need to be prepared for the loss of business such incidents may cause. The majority of consumers who currently use the following, say they would stop using a retailer (60%), bank (58%) or social media site (56%) if it suffered a breach, while 66% say they would be unlikely to do business with an organization that experienced a breach where their financial and sensitive information was stolen.
How data breaches affect consumers
The study found that fraudulent use of financial information has affected 21% of consumers, with others experiencing fraudulent use of their personal details (15%) and identity theft (14%). More than a third (36%) of those who have been a victim of a breach attribute this to a fraudulent website. Clicking a bad link (34%) and phishing (33%) were the next highest methods consumers were caught by. In keeping with the theme of putting the blame at the organization's hands, over a quarter (27%) attributed the breach to a failure of the company's data security solutions.
Lack of security measures influence consumer confidence
The lack of consumer confidence could be due to the lack of strong security measures being implemented by businesses. Within online banking, passwords are still the most common authentication methods - used by 84% for online and 82% for mobile banking, and more advanced transaction security the next highest for both (50% and 48% respectively). Solutions like two-factor authentication (43% online and 42% mobile) and data encryption (31% online and 27% mobile) trail behind.
Similar results can be seen in both the retail space, with only 25% of respondents that use online retail accounts claiming two-factor authentication is used on all their apps and websites, and in social media, with only 21% using the authentication for all platforms. Only 16% of all respondents admitted to having a complete understanding of what data encryption is and does.
"Consumers have clearly made the decision that they are prepared to take risks when it comes to their security, but should anything go wrong they put the blame with the business," said Jason Hart, CTO, Data Protection at Gemalto. "The modern-day consumer is all about convenience and they expect businesses to provide this, while also keeping their data safe. With the impending threats of consumers taking legal action against companies, an education process is clearly needed to show consumers the steps they are taking to protect their data. Implementing and educating about advanced protocols like two-factor authentication and encryption solutions, should show consumers that the protection of their personal data is being taken very seriously."
- Download the full 2016 Data Breaches and Consumer Loyalty Report here
- Download the Infographic here and video infographic here
Gemalto (Euronext NL0000400653 GTO) is the global leader in digital security, with 2015 annual revenues of €3.1 billion and customers in over 180 countries. We bring trust to an increasingly connected world.
Our technologies and services enable businesses and governments to authenticate identities and protect data so they stay safe and enable services in personal devices, connected objects, the cloud and in between.
Gemalto's solutions are at the heart of modern life, from payment to enterprise security and the internet of things. We authenticate people, transactions and objects, encrypt data and create value for software - enabling our clients to deliver secure digital services for billions of individuals and things.
Our 14,000+ employees operate out of 118 offices, 45 personalization and data centers, and 27 research and software development centers located in 49 countries.
Gemalto media contacts:
| Philippe Benitez|
+1 512 257 3869
| Peggy Edoire|
Europe & CIS
+33 4 42 36 45 40
| Vivian Liang|
+55 11 5105 9220
Middle East & Africa
+33 1 55 01 57 89
+65 6317 8266
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Gemalto via Globenewswire
Source(s) : Gemalto
Majority of consumers would stop doing business with companies following a data breach, finds GemaltoOnly a quarter (27%) of consumers feel businesses take customer data security very seriously While 62% of consumers feel businesses are responsible for data security they have poor security hygiene and fail to take advantage of security ...
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