In a world where an ever-increasing number of transactions are carried out online – requiring consumers to share personal information – the threat of a data breach is never far away. In the last month alone, Netflix and Facebook have both been hacked and in June 2016, a breach at South Yorkshire Police Force’s website potentially put confidential data at risk.
According to new YouGov research commissioned by credit information provider, Equifax (YouGov online survey. Total sample size was 2,037 adults. Fieldwork undertaken between June 17-20 2016. Figures from YouGov Plc), nearly a quarter (23%) of UK consumers say that a company holding their personal information has experienced a data breach, with those in the South East being the most affected at 30% and residents in the North East being the least affected at 19%. When it comes to the generations, the 25-34-year-olds seem the most affected at 31%; the figure falling to just 18% for the over-55s.
Financial compensation after data breach expected
It seems that with the increased risk of a data breach, consumers’ expectations of how they are informed and assisted by any company holding their data are unsurprisingly high. Almost three-quarters (73%) of UK adults surveyed by YouGov on behalf of Equifax think companies should tell them that they have experienced a data breach at some point, with 63% expecting to be told within a few hours of the breach being discovered by the company. 61% would expect financial compensation if their personal data was misused as a result of the breach and 57% would expect to have a free monitoring service set up to alert them if their financial information is misused.
Not only do consumers expect fast action and compensation if their data is breached, companies also need to adhere to the Data Protection Act enforced by the ICO. Companies may receive a fine if they suffer a breach of customer data, and also may face legal action. Future regulation may also require organisations to notify all individuals if they suffer a breach.
Lisa Hardstaff, credit information expert at Equifax, explained: “A data breach isn’t just a huge logistical challenge for any organisation. It also can do serious damage to brand reputation, as our recent research revealed. 61% of consumers said they would be unlikely to purchase goods or services from a company if it had experienced a data breach in the past.
“It’s clear that consumers quite rightly expect companies to look after their data. But individuals have a part to play, too, in keeping their own details safe. It’s worth remembering that social media accounts hold a lot of personal information, giving fraudsters more than enough data to help them steal someone’s identity and rack up debt in their name. However, our latest research revealed that consumers are most worried about their bank account and credit card details being stolen (84%), while only 7% are worried about hackers gaining access to social media account login details, in the event of a breach.
“Fraudsters are continually evolving their methods and, while organisations tracking and stopping them do have high success rates, the financial incentive for fraudsters to invent new techniques means they stay one step ahead of those out to stop them. Consumer vigilance is therefore key and while the onus is on a business to take action to protect the personal information that has been hacked, there are steps consumers can take, too, including changing passwords.”
