A new survey of UK consumers has found that a significant percentage of them stop associating with businesses in the immediate aftermath of a security breach and almost half of them don't deal with businesses that have suffered breaches in the past.
This increase in awareness among consumers about their data rights was gauged by secure payments provider PCI Pal who also found during their study that as many as 38 percent of Brits have been the victims of data breaches and considering that a number of high-profile breaches have occurred in the recent past, UK consumers are now more concerned about their data privacy and online security than ever before.
According to the survey, 55%, or over half of all UK consumers, are uncomfortable reading their credit card information over the phone and only 44% are willing to share information over the phone and only to companies that have earned their explicit trust.
UK consumers trust retail & travel industries the least
As far as the trust of consumers in security practices observed by various industries is concerned, as many as 40 percent of Brits trust the retail industry the least and 35 percent of them also share the least trust for the travel industry.
"With the ongoing introduction of new data privacy regulations around the world, companies face significant fines in the event of a breach. But our research shows they may face an even bigger financial consequence in the aftermath of a breach, with the loss of customer loyalty and trust," said James Barham, CEO at PCI Pal.
"To avoid such implications, companies should adequately prepare themselves for the increasing likelihood that a data breach will inevitably occur."
While the fact that 44 percent of Brits are willing to share their information over the phone to companies that have earned their explicit trust is encouraging, it is important that UK consumers must always double-check that they are communicating with the right people and not with scammers and online fraudsters.
Cyber criminals exploiting consumers' blind trust in popular brand names
Last year, a survey of 1,000 British consumers by security firm DomainTools revealed that phishing scams leveraging trusted brand names were able to dupe one in five British consumers, with 15% seeing their personal information compromised, 6% tricked into purchasing a fake product, and 20% witnessing their computers being infected with a virus.
16% of British consumers also told DomainTools that they were unsure whether they had clicked on a scam email, thereby suggesting that the number of people affected by phishing scams could be much higher than believed.
A similar survey carried out by DomainTools in 2017 revealed that the brands most likely to be leveraged for phishing scams included Amazon (88%), Argos (46%) and Tesco (35%) and that 24% of their customers had their computers infected with viruses, 20% had their credit card details or personal information stolen, and another 8% lost money on deals that never existed.
"The issue here reinforces that people will blindly click on links if they believe it has come from a trusted resource. People are trusting, and criminals take advantage of this by preying on their emotions and having massive success, mainly due to people not querying messages. It’s important that they stop and think before clicking," said Stephen Burke, Founder & CEO of Cyber Risk Aware.