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:

Holidays
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
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


About John H. Oldshue

John Oldshue is the creator of LowCards.com. He worked for over 15 years in television and won an Emmy award for his reporting. He covers credit card rate issues for LowCards.com.
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