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Majority of consumers would stop doing business with companies following a data breach

28th Nov 17 9:25 am

Only a quarter of consumers feel businesses take customer data security very seriously

A majority (70 per cent) of consumers would stop doing business with a company if it experienced a data breach, according to a survey of more than 10,000 consumers worldwide conducted on behalf of Gemalto, the world leader in digital security. In addition, seven in ten consumers (69 per cent) feel businesses don’t take the security of customer data very seriously.

Despite these concerns, the Gemalto study found that consumers are failing to adequately secure themselves, with over half (56 per cent) still using the same password for multiple online accounts. Even when businesses offer robust security solutions, such as two-factor authentication, two fifths (41 per cent) of consumers admit to not using the technology to secure social media accounts, leaving them vulnerable to data breaches. This may be because the majority of consumers (62 per cent) believe the business holding their data is mostly responsible for its security. This is resulting in businesses being forced to take additional steps to protect consumers and enforce robust security measures, as well as educate them on the benefits of adopting these. Retailers (61 per cent), banks (59 per cent) and social media sites (58 per cent) were found to have a lot of work to do, with these being sectors that consumers would leave if they suffered a breach. 

“Consumers are evidently happy to relinquish the responsibility of protecting their data to a business, but are expecting it to be kept secure without any effort on their part,” says Jason Hart, CTO, Identity and Data Protection at Gemalto. “In the face of upcoming data regulations such as GDPR, it’s now up to businesses to ensure they are forcing security protocols on their customers to keep data secure. It’s no longer enough to offer these solutions as an option. These protocols must be mandatory from the start – otherwise businesses will face not only financial consequences, but also potentially legal action from consumers.”

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