Global survey by Gemalto reveals impact of data breaches on customer loyalty
(Thomson Reuters ONE) -
Nearly two-thirds of consumers surveyed say they are unlikely to do business
again with a company that had experienced a data breach where financial
information was stolen
AMSTERDAM - December 10, 2015 - Nearly two-thirds (64%) of consumers surveyed
worldwide say they are unlikely to shop or do business again with a company that
had experienced a breach where financial information was stolen, and almost half
(49%) had the same opinion when it came to data breaches where personal
information was stolen. This is according to a recent global survey by Gemalto
(Euronext NL0000400653 GTO), the world leader in digital security, titled
"Broken Trust: 'Tis the Season to Be Wary", which surveyed 5,750 consumers in
Australia, Brazil, France, Germany, Japan, United Kingdom and United States.
Key Findings
The survey findings are revealing as more consumers rush to complete their
shopping during the holiday season. Six in ten people surveyed (59%) believe
that threats to their personal information increases during the festive season,
and two in ten (18%) believe that they are likely to be a victim of a breach
during the holiday season.
Confidence in corporate data security is low
Only a quarter (25%) of all respondents feel that companies take the protection
and security of customer data very seriously. More than twice as many
respondents feel that the responsibility of protecting and securing customer
data falls on the company (69%) versus the customer (31%). Of the employed
respondents, only around two fifths (38%) feel that their employer takes the
protection and security of employee data very seriously.
Consumers have been hit hard before
The survey revealed that 31% of respondents have already been affected by data
breach in the past. Around four in ten state the most likely causes for being a
victim of a breach are visiting a fraudulent website (42%), phishing attacks
(40%) or clicking a fraudulent web link (37%). The emotional impact of data
breaches has also created apprehensive feelings towards businesses with nearly
one fifth surveyed (19%) feeling they are likely to be a victim of one within
twelve months to three years.
Ninety percent of surveyed consumers feel that there are apps and websites that
pose significant risks to the protection and security of their personal
information. Fifty-five percent believe that social media sites expose them to
the greatest risk, and around two in five respondents believe adult content and
torrent apps/websites carry the greatest risk to the security of personal
information.
Customers are getting increasingly impatient with breached companies
Around a quarter (23%) of respondents who have been a victim of a data breach,
either have, or would, consider taking legal action against the breached company
involved in exposing their personal information. Almost half (49%) of
respondents said they would take or would consider taking legal action against
any of the parties involved in exposing their personal information.
Security is a two-way street
However, the consumer is not completely absolved of responsibility. Despite the
many risks involved, the survey also found that a majority (54%) of respondents
are using the same password for all or some of their online accounts. Of the
respondents who actively use social media accounts, only a quarter (25%) use
two-factor authentication to secure all of their social media accounts. Of the
respondents who actively use online/mobile banking, around three fifths (58%)
say that all of their banks use two-factor authentication to secure their
internet banking. This isn't as widespread amongst retailers, however. Of the
respondents who actively use online retail accounts, one in four (25%) state
that all of the online retail apps/websites they use, require two-factor
authentication to secure online transactions.
"The media coverage of massive data breaches has done little to instil
consumers' confidence in how well companies, big and small, are protecting their
data," said Jason Hart, Vice President and Chief Technology Officer for Data
Protection at Gemalto. "The fact that employees don't even feel that their
employers are taking the protection of their personal data security very
seriously rings alarm bells. Either companies need to increase their security
measures or, assuming that they already have these in place, they need to
communicate this to their customers."
"As companies collect ever-increasing amounts of customer data and as our
digital interactions become more diverse, more data about what we do, who we are
and what we like is being stored online," continued Hart. "The survey proves
that the traditional data security mind-set needs to evolve, this goes for
companies and consumer adoption of advanced security measures like two-factor
authentication. Otherwise, an increasing numbers of consumers will cut ties with
companies who aren't taking data protection seriously, and take their business
to someone they can trust."
About the Survey
Independent technology market research specialist Vanson Bourne was commissioned
by Gemalto to undertake the research on which this report is based. 5,750
consumers were interviewed during October and November 2015. 1,500 interviews in
the US, 500 in Brazil and 750 in each of the following countries: UK, Australia,
Japan, France and Germany. To qualify for the study, consumers had to actively
use online/mobile banking, social media accounts or online retail accounts.
Related Resources
* Customer Loyalty and Data Breach Report
* Customer Loyalty and Data Breach Infographic
About Gemalto
Gemalto (Euronext NL0000400653 GTO) is the world leader in digital security,
with 2014 annual revenues of ?2.5 billion and blue-chip customers in over 180
countries.
Gemalto helps people trust one another in an increasingly connected digital
world. Billions of people want better lifestyles, smarter living environments,
and the freedom to communicate, shop, travel, bank, entertain and work -
anytime, everywhere - in ways that are enjoyable and safe. In this fast moving
mobile and digital environment, we enable companies and administrations to offer
a wide range of trusted and convenient services by securing financial
transactions, mobile services, public and private clouds, eHealthcare systems,
access to eGovernment services, the Internet and internet-of-things and
transport ticketing systems.
Gemalto's unique technology portfolio - from advanced cryptographic software
embedded in a variety of familiar objects, to highly robust and scalable back-
office platforms for authentication, encryption and digital credential
management - is delivered by our world-class service teams. Our 14,000 employees
operate out of 99 offices, 34 personalization and data centers, and 24 research
and software development centers located in 46 countries.
For more information visit www.gemalto.com, www.justaskgemalto.com,
blog.gemalto.com, or follow (at)gemalto on Twitter.
Gemalto media contacts:
Philippe Benitez Peggy Edoire Vivian Liang
North America Europe & CIS (Greater China)
+1 512 257 3869 +33 4 42 36 45 40 +86 1059373046
philippe.benitez(at)gemalto.com peggy.edoire(at)gemalto.com vivian.liang(at)gemalto.com
Ernesto Haikewitsch Kristel Teyras Pierre Lelievre
Latin America Middle East & Africa Asia Pacific
+55 11 5105 9220 +33 1 55 01 57 89 +65 6317 3802
ernesto.haikewitsch(at)gemalto.com kristel.teyras(at)gemalto.com pierre.lelievre(at)gemalto.com
Press release (PDF):
http://hugin.info/159293/R/1972522/721489.pdf
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Gemalto via GlobeNewswire
[HUG#1972522]
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