Australian consumers are more likely than their global counterparts to walk away from a company that experiences a data breach.
Consumers are holding companies responsible for data security and are likely to abandon a business entirely, and take legal action, if they suffer a data breach, a new study reports.
Gemalto’s Customer Loyalty 2018 Report found Australian consumers are more likely than their global counterparts to walk away from a company (retail, financial, healthcare) that experiences a breach, with over two-thirds (70 per cent) admitting they would look elsewhere if financial and sensitive information such as card details and bank accounts were stolen. Over half (55 per cent) admitted they would also walk if passwords alone were stolen.
“Businesses have no choice but to improve their security if they want to address frustrated consumers that don’t believe the onus is on them to change their security habits,” Gemalto CTO of data protection, Jason Hart. “Social media sites in particular have a battle on their hands to restore faith in their security and show consumers they’re listening – failing to do so will spell disaster for the most flagrant offenders, as consumers take their business elsewhere.”
“This should be a wake-up call to businesses that consumer patience has run out. It’s clear they have little faith that organisations are taking their data protection seriously, or that their concerns will be heard, forcing them to take action themselves.”
This protection is also vital if organisations want to keep the next generation of customers, Hart said.
“As young people become the big spenders of the future, businesses are risking not only alienating their current and future revenue streams but also their reputation if they continue to give the impression that they don’t take data security seriously,” he added. “Businesses must start doing the basics properly; protecting their most valuable asset, data, with the correct security controls.”
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