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02.10.2017

EU/US: Privacy Regarded by Customers as a Business Responsibility

Hardly a day goes by without the media reporting on a new data breach. It is becoming increasingly clear that this negative press can have a direct impact on the value of a business. As an example, Yahoo's buyer Verizon recently announced its intention to renegotiate the originally agreed purchase price following the loss of one billion customers' data at Yahoo. Consumers are also increasingly critical of corporate data leaks. 66 percent of respondents would no longer do business with a company if their account data or other sensitive information had been stolen as the result of a security breach. This is according to security firm Gemalto, which recently presented the findings of its "2016 Data Breaches and Customer Loyalty Report."

9,000 people in Australia, Belgium, the Netherlands, Luxembourg, France, Germany, Russia, the United Arab Emirates, Saudi Arabia, India, Japan, the United Kingdom and the United States were asked about their views on privacy and data security for the survey. 70 percent of participants said that they consider businesses to be responsible for protecting customer data, while only 30 percent felt it was their own responsibility. Just 29 percent reported being convinced that the protection of personal data is actually taken seriously by businesses. With this in mind, 58 percent said they are worried about their data being stolen in a future hack. 21 percent have already experienced misuse of their account information for fraudulent purposes. 14 percent have had their whole identities stolen.

The majority of participants also stated that they would never be a customer of an online shop (60 percent), bank (58 percent) or social media portal (56 percent) if a security breach had occurred there.

Even though a data leak is unlikely to send two thirds of online customers heading for the hills, the findings of the survey should still give pause for thought. A large proportion of those affected by data breaches see them as being due to inadequate data security on the part of the provider, and criticize a lack of two-factor authentication or effective data encryption. Businesses should be proactive here and put advanced security procedures into practice. If the implementation is accompanied by appropriate communication, this should make clear to customers that protecting their sensitive data is indeed a high priority.

Further information:
http://www.gemalto.com/...finds-Gemalto.aspx

Photo: © iQoncept - Fotolia

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