Consumers lose trust in businesses that have suffered a data beach; Gemalto
Consumers feel that the majority of the responsibility for data security lies with businesses
Businesses in the Middle East who have experienced a data breach are at risk of losing customers as there is lack of faith, according to a survey.
Gemalto's survey highlighted that 41% of respondents feel that businesses do not take the security of customer data seriously due to poor security hygiene. However, the survey also discovered that consumers themselves are failing to protect themselves as 64% use the same password for multiple accounts and whilst businesses offer two-factor authentication, 28% say they do take advantage of this. Despite this, many consumers believe it is the company's responsible to secure data held.
Additionally consumers only trust select industries, as 28% of respondents say they trust banks the most with their personal data, followed by government (23%), device manufacturers (19%) and industry certification bodies (9%).
Jason Hart, CTO, Identity and Data Protection at Gemalto, said: "Consumers are evidently happy to relinquish the responsibility of protecting their data to a business, but are expecting it to be kept secure without any effort on their part.
"In the face of upcoming data regulations such as GDPR, it's now up to businesses to ensure they are forcing security protocols on their customers to keep data secure. It's no longer enough to offer these solutions as an option. These protocols must be mandatory from the start - otherwise businesses will face not only financial consequences, but also potentially legal action from consumers."
Despite their behaviour, consumers' security concerns are high, as 33% worry they will be victims of a data breach in the near future. Consequently, consumers now hold businesses accountable - if their data is stolen, 43% of consumers would take or consider taking legal action against the compromised business.
Hart concluded: "Something has to change soon on both the business and consumer sides or this is only going to get worse."