Consumers Hit Back When Companies Are Breached
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Consumers Hit Back When Companies Are Breached
Weary of the non-stop assault on their personal data and privacy, consumers are shifting their spending to companies that do a better job of protecting them. -
Buying Power
In the past year, 35% of the 900 consumers surveyed have chosen not to buy products or services from a company over concerns about data privacy. -
Accepting Risk
24% of these consumers conceded that no business is perfect in safeguarding their information. -
Trusting Tech
One-third of them trust companies' technology: 17% because they trust the brand, and 16% because they've observed the technology in action. -
Walking the Talk
Among the consumers identifying themselves as vigilant on privacy issues, 82% have boycotted a company over such concerns—up from 54% in 2011. -
Business vs. Government
Nearly three times as many consumers (37% vs. 13%) said they trust the data security of businesses more than government's—a big shift from 2011, when it was nearly an even split. -
Breach Boycotts
22% of the consumers surveyed have stopped purchasing from a company as a result of a data breach. -
Knowledge Is Power
33% of those earning $100,000 or more a year and 28% of those with a college degree stop buying from companies that have had breaches. -
Identity Theft Is Top Fear
52% of the consumers surveyed list identity theft as their top privacy fear, up from 20% in 2011. That's more than five times the number of people who listed the No. 2 fear, trampling of privacy rights. -
Surveillance Tolerated
31% of the consumers believe that U.S. government surveillance has likely thwarted a terrorist attack, and 19% are comfortable exchanging privacy for the security that surveillance provides. -
Answers Sought
70% said they'd be more accepting of U.S. government surveillance if the agencies in question shared more about how their programs work and how privacy is being protected.
Now that consumers have grudgingly accepted a reality in which the growing array of security and privacy threats in the digital world are an unavoidable part of life, they are using their concerns to seize economic power. They have begun tying their purchasing decisions to the seemingly never-ending string of data breaches that have hit large American brands over the past few years. Along those lines, a recent poll of American consumers shows that many people are refusing to do business with companies that could potentially put them at risk. Law firm Morrison & Foerster, a specialist in data breaches, surveyed 900 people and found that growing numbers of them are educating themselves about the security measures companies are taking. Significantly, a growing number of consumers are refusing to do business with companies that do a poor job protecting their customers' personal information. "The findings indicate that a significant percentage of the American people continue to be concerned about numerous facets of security," said Andrew Serwin, co-chair of Morrison & Foerster's global privacy and data security group.