CMO Australia – Report: Consumers prepared to walk away due to data breaches

cmoAustralian 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.”

To read the full article click here.

HelpNet Security – Consumers believe social media sites pose greatest risk to data

helpnetA majority of consumers are willing to walk away from businesses entirely if they suffer a data breach, with retailers most at risk, according to Gemalto. Two-thirds (66%) are unlikely to shop or do business with an organisation that experiences a breach where their financial and sensitive information is stolen. Retailers (62%), banks (59%), and social media sites (58%) are the most at risk of suffering consequences with consumers prepared to use their feet.

“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,” says Jason Hart, CTO, Data Protection at Gemalto. “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.”

To read the full article click here.

Computer Weekly – UK consumers threaten data breach backlash

cw_logoMost UK and global consumers are willing to walk away from businesses that fail to look after personal data, with retailers most at risk, research shows

Seven out of 10 UK consumers and two-thirds, on average, around the world would stop doing business with a brand that suffers a breach of users’ financial or personal data. Retailers are most at risk globally, with 62% of respondents willing to walk away after a data breach, followed by banks (59%) and social media sites (58%), according to a survey of 10,500 consumers by digital security firm Gemalto.

“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,” said Jason Hart, CTO, data protection at Gemalto.

“Social media sites, in particular, have a battle on their hands to restore faith in their security and show consumers they are listening. Failing to do so will spell disaster for the most flagrant offenders, as consumers take their business elsewhere.”

To view the full article click here.

Global Banking & Finance Review – Social Media Companies Believed to Be Vulnerable

gbaflogoA majority of consumers are willing to walk away from businesses entirely if they suffer a data breach, with retailers most at risk, according research from Gemalto, the world leader in digital security. Two-thirds (66%) are unlikely to shop or do business with an organization that experiences a breach where their financial and sensitive information is stolen. Retailers (62%), banks (59%), and social media sites (58%) are the most at risk of suffering consequences with consumers prepared to use their feet.

Surveying 10,500 consumers globally, Gemalto found that, across all ages, 93% are placing the blame squarely on businesses and would think about acting against them. Social media sites worry consumers most, with 61% concerned companies in this space don’t adequately protect consumer data, followed by banking websites (40%).

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, says Jason Hart, CTO, Data Protection at Gemalto. 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.

To read the full article click here.