New research commissioned by Semafone has revealed that the overwhelming majority of people would not do business with a company that had failed to protect its customers’ card data in the event of a data breach.
In the survey, conducted by OnePoll, 86.55% of 2000 respondents stated that they were “not at all likely” or “not very likely” to do business with an organisation that had suffered a data breach involving credit or debit card details. The proportion of women expressing this view was 91.48%, which was markedly higher than the figure of 81.93% for men.
The survey also revealed that other types of data breach would drastically erode customer confidence. Below are the percentages of people who stated that they were “not at all likely” or “not very likely” to do business with an organisation which had suffered breaches involving the following types of personal data:
- Credit or debit card details 86.55%
- Home address: 82.95%
- Telephone number: 80.10%
- Email address: 76%
The research findings coincide with news that the European Parliament has voted to approve the EU’s new data protection legislation, which brings in a number of serious measures in favour of customers. These include a potential fine of 5% of gross revenues for companies who fail to protect customer data adequately, and the requirement to inform local data protection authorities within 24 hours of any breach.