Data Breaches Affect Customer Loyalty
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Data Breaches Affect Customer Loyalty
Consumers are aware of online security risks and hold businesses responsible for protecting their personal data. Companies must step up or risk losing customers. -
Companies Must Protect Customer Data
The 9,000 consumers surveyed believe 70% of the responsibility for securing their data lies with the organizations holding their data. -
Businesses Not Stepping Up
Only 30% of those responding to the survey believe that those companies are taking consumer personal data protection very seriously. -
Many Consumers Fear a Breach
58% of the survey participants fear that they will be victims of an online data breach. -
Most Would Flee
66% of the respondents said they would be unlikely to do business with organizations responsible for exposing their financial and other sensitive information. 31% would sever ties with a company if consumer passwords were stolen. -
Many Would Sue
48% have either taken or are considering taking legal action against the parties involved in exposing or taking their personal information. Only 7% of respondents would not consider legal action if they were a victim of a future breach. -
Some Already Affected
21% of the survey group have already experienced fraudulent use of their financial information, 15% have had their personal details hacked and 14% have experienced identity theft. -
Billions of Breaches
Since 2013, more than 4.8 billion data records have been exposed. -
Behind the Breaches
A fraudulent website: 36%, A fraudulent web link: 34%, Phishing: 33%, Failure of a company's security: 27% -
Stringent Security Not Common
Within online banking, passwords are the most common authentication methods, used by 84% for online banking and 82% for mobile banking. Trailing behind: two-factor authentication (43% online and 42% mobile) and data encryption (31% online and 27% mobile). -
Wary but Undeterred
34% of consumers believe online or mobile banking makes them vulnerable to cyber-crime, but 87% of them use it anyway. 59% see risks in social media, yet 80% remain active. -
Poor Password Practices
53% of the survey participants said they use the same password across some or all of their accounts, with 13% admitting to using the same password across all of their online accounts.
Online security is full of holes, according to a recent survey of 9,000 consumers in the United States and 10 other countries. Most consumers who are active online—nearly six out of 10— believe they will be a victim of a data breach at some point. In fact, many have already been affected: 21 percent have experienced fraudulent use of their financial information, and 14 percent have experienced identity theft. The "2016 Data Breaches and Customer Loyalty report," conducted by digital security firm Gemalto, shows that survey participants believe most of the responsibility for safeguarding their data lies with the companies involved, but many consumers believe companies don't take that charge seriously. Further, the majority would stop using a business that experienced a breach in which their financial and other sensitive information was stolen, and many would take legal action against the company. Weak security measures could be contributing to the lack of confidence. Many organizations rely solely on passwords to protect user data; far fewer use more stringent measures, such as two-factor authentication and data encryption. "Implementing such advanced protocols and educating consumers about them should show consumers that businesses take the protection of their personal data very seriously," said Jason Hart, CTO, Data Protection at Gemalto. "Failure to do so makes a company vulnerable to repercussions that can potentially ruin a reputation and the company itself." However, the study clearly shows that consumers could do more to help themselves: Though they are conscious of the risk that using online accounts can pose to their personal data, many leave themselves more vulnerable by using the same passwords across multiple accounts.