Businesses losing out on customers due to poor data security

Two thirds of UK consumers will walk from a company that has poor security measures in place.

Data security is becoming an increasingly important factor in helping people decide who should have their business, according to a new survey by CanvasseOpinion for CreditExpert.co.uk – the credit monitoring and identity fraud protection service from Experian.

No less than 65 per cent of those surveyed say they would never buy again from an organisation that did not keep their personal information absolutely safe; 60 per cent of people would never trust an organisation that failed to do so; and more than half (52 per cent) would go out of their way to spread the word of an organisation’s failings. Legal action is a common response – 24 per cent say that they would consult a lawyer.

Respondents were also asked which organisations they least trusted to keep personal data safe. Topping the list were car dealers – 46 per cent do not trust them to keep data safe. They were followed by:

Insurance companies – 34 per cent
Internet companies – 33 per cent
National and local government – 32 per cent
Retailers – 27 per cent
Charities – 20 per cent
Banks – 15 per cent
Fears of ID fraud

These attitudes may be prompted by a fear of identity fraud, given that 22 per cent, or 10.3 million, report that they know somebody who has been a victim of ID fraud.

If a data breach occurs, people expect prompt action. Four out of five (80 per cent) would accept a full apology, plus an explanation of what happened and a guarantee that it would never happen again – but for 75 per cent of people that is not enough. They also expect financial compensation.

Credit monitoring wanted

Of those in work, 76 per cent think that any organisation that suffered a data breach and then offered free access to a credit monitoring and identity theft protection service would be seen as responsible.

Worryingly, 24 per cent of employees believe that their own organisation is not taking adequate measures to safeguard its employees’ personal data. An equal number believe the same of an organisation of which they are a customer.

Almost half of all adults – 43 per cent – want the organisations they deal with to explain their fraud protection policies and send them regular updates on the action that is being taken. And 76 per cent of employees would think that their employer was a responsible organisation if it offered a credit monitoring and identity fraud service to its staff.

Darryl Bowman, commercial director of CreditExpert, says, “Personal experience of identity fraud and the publicity surrounding recent data breaches that affecting many thousands of people means that more of us have become concerned about the capability of the organisations we deal with to hold personal data securely.

“People are demanding that companies, government and charities get to grips with the problem. One practical and cost-effective way to reassure staff and customers after a data breach is to give them access to an online credit monitoring and ID fraud protection service such as CreditExpert. This survey shows it is a simple and inexpensive way to rebuild trust.”

He adds, “The research shows a clear demand from consumers and employees to be put back in control of their personal information. As a result, CreditExpert has developed a data breach pack, which they’re giving away free to help organisations provide their customers and employees with the means to do precisely that.

“People should not have to wait for a data breach to happen before action is taken –they should have the power to monitor their personal information hands-on and nip any potential attempts at identity fraud in the bud.”