Consumers Don’t Trust Retailers On Data Safety
Nearly one third of consumers across the globe do not trust retailers when it comes to protecting their stored personal and financial information against hacking attempts and data breaches, said a study, ‘Global Consumers: Concerned and Willing to Engage in the Battle Against Fraud’, conducted by ACI Worldwide and Aite Group which also noted that India has one of the highest rate of prepaid card fraud at 18% closed followed by China at 17%.
“Consumer distrust is exacerbated by the widely publicized retail data breaches over the past year,” explained Mike Braatz, senior vice president, Payments Risk Management Solutions, ACI Worldwide. The researcher believes keeping your customers means keeping customer data safe and sound.
As the adoption rates of mobile wallets continues to grow – from 34% in 2012 to 47% in 2014, fraud will continue to be on the top of the minds of consumers. Indian consumers trust their banks the most to protect their personal information as compared to any other country (54%).
Below are some key India statistics from the survey:
• India has the highest rate of prepaid card fraud at 18%, and a very high consumer user rate at 91%, in the year 2014
• The adoption rate of mobile wallets in India is 47% in 2014, whereas it was only 34% in 2012
• In 2014, 54% of Indian consumers, which is the maximum as compared to other countries, trust their banks to protect their personal information
• 62% of Indian consumers trust stores where they shop, that they use security systems to protect their card or account information. Similarly, 73% of Indian consumers trust online shopping sites to have security systems to protect their card or account information
• India stands out as the only country in this global study where over half of consumers feel confident that their stored data is safe against hacking attacks and data breaches
• 47% of Indian consumers believe that the government and law enforcement are doing an average job at fighting card or account fraud
After recent data breaches at major retailers globally as well as in India, several new reports serve as a wakeup call to businesses that store consumer data. One report, a study by market research company GfK, found that 60% online users in US are more concerned about the security of their data now than they were this time last year.
Customers also want to know when their accounts have been compromised with 77% “very interested” about being contacted via phone call, email or text when there has been suspicious activity on their card or account. After a fraud has been identified, 73% prefer that their banks don’t post transactions to their cards until a response to the fraud alert has been made.
The study noted that consumers want to engage in the battle against fraud. Financial institutions must take a proactive role in not only engaging customers in fraud-alerting activities, but educating them on preventative measures to take to most effectively combat it, said the study, adding that this can have a big impact in customer satisfaction and loyalty.
- Adobe, Microsoft, SAP Team Up For Open Data Initiative
- Millennials and Cybersecurity: Understanding the Value of Personal Data
- Microsoft, DSCI Team Up To Fill The Women In Cybersecurity Gap
- Email Based cyberattacks Continue To Soar: Study
- Key Technologies Redefining Human Resources
- Study Shows Digital Trust Gap Between Companies And Consumers
- Travel, E-Com, Utility Lead To India's Digital Commerce Boom: Study
- New Security Flaw Grips Most Modern Laptops: F-Secure Researchers
- 6 Key Trends For Artificial Intelligence Powering The Investment Sector
- Firms Keen On Hiring Techies With Soft Skills, Says LinkedIn