Wednesday, 6 February 2019

Customers Blame Companies not Hackers for Data Breaches

RSA Security latest search reveals over half (57%) of consumers blame companies ahead of hackers if their data is stolen. Consumer backlash in response to the numerous high-profile data breaches in recent years has exposed one of the hidden risks of digital transformation: loss of customer trust.

The RSA Data Privacy & Security Survey 2019 identified that companies have lost the trust of customers as a disconnect has formed between how companies are using customer data and how consumers expect their data to be used.

Despite the fact that consumers harbour heightened concerns about their privacy, they continue to exhibit poor cyber hygiene, with 83% of users admitting that they reuse the same passwords across many sites, leaving them more vulnerable.

Key takeaways from the RSA Data Privacy study, include:

  • Context matters: Individuals across all demographics are concerned about their financial/banking data, as well as sensitive information such as passwords, but other areas of concern vary dramatically by generation, nationality and even gender. For example, younger demographics are more comfortable with their data being used and collected than older survey respondents. 
  • Privacy expectations are cultural: Consumers respond to data privacy differently based on their nationality due to cultural factors, current events and high-profile data breaches in their respective countries. For example, in the months of the GDPR being implemented, German attitudes shifted in favour of stricter data privacy expectations, with 42% wanting to protect location data in 2018 versus only 29 percent in 2017.
  • Personalisation remains a puzzle: Countless studies have demonstrated that personalised experiences increase user activity and purchasing. However, the survey results showed that respondents do not want personalized services at the expense of their privacy. In fact, a mere 17% of respondents view tailored advertisements as ethical, and only 24% believe personalisation to create tailored newsfeeds is ethical. 
“With a growing number of high-profile data breaches, questions around the ethical use of data and privacy missteps, consumers increasingly want to know how their data is being collected, managed and shared,” said Nigel Ng, Vice President of International, RSA. “Now is the time for organisations to evaluate their growing digital risks, doubling down on customer privacy and security. Today’s leaders must be vigilant about transforming their cybersecurity postures to manage today’s digital risks in a way that ensures consumer trust and confidence in their business.

1 comment:

  1. It's a risky business by compromising on your cyber security by using same password for every web account

    ReplyDelete