Data Breaches Threaten Customer Loyalty

December 15, 2015, Written By John H. Oldshue

Nearly two-thirds (64%) of consumers said they would be unlikely to do business with a company that had experienced a breach where financial information was stolen, according to a global survey by Gemalto. 49% would no longer use a company if personal information had been stolen.

Gemalto, a digital security company, surveyed 5,750 consumers in Australia, Brazil, France, Germany, Japan, the United Kingdom and the United States on customer attitudes about data breaches. Key findings include:

Six in ten people believe security threats increase during the holiday season, and 18% believe they are likely to be a victim of a data breach this time of year.

Confidence in Corporate Data Security
Just one in four consumers believe companies take the protection and security of customer data seriously. Only 38% of the employed respondents feel their employer takes the protection and security of employee data seriously. Most of the respondents (69%) said it is a company’s responsibility to protect data–not the customer’s.

Past Data Breaches
31% of respondents have already had to deal with a data breach. Respondents were victimized due to visiting fraudulent websites (42%), phishing attacks (40%) or clicking fraudulent web links (37%). Those who have been victims of data breaches are likely to feel more apprehensive about shopping, as 19% believe they may be revictimized within one to three years.

Riskiest Websites
Nearly all (90%) of the respondents think certain apps and websites pose significant security risks. 55% believe social media is the riskiest, and two in five consumers believe adult content and torrent apps/websites are the greatest threat.

Consumer Action
23% of respondents who have been victims of data breaches have either taken, or would consider taking, legal action against a company that exposed their personal information. Nearly half said they would take legal action against a company if their financial information was exposed.

The information contained within this article was accurate as of December 15, 2015. For up-to-date
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