According to a report 70% of the consumers believe responsibility for protecting and securing customer data lies with companies and only 30% of the responsibility with themselves. These were the findings of digital security firm Gemalto’s 2016 Data Breaches and Customer Loyalty report.
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.
The report surveyed 9,000 consumers in Australia, Benelux, France, Germany, Russia, UAE, Saudi Arabia, India, Japan, United Kingdom, and United States.
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 behaviour 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
Consumers 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.