A combination of high-profile recent breaches, headlines devoted to new data privacy regulations such as the GDPR, and personal experience have put security concerns at the forefront for UK consumers, it is claimed by a payment security services firm. Over a third (38pc) confirmed they have suffered the negative consequences of a data security breach.
Meanwhile, consumers reported that even being perceived as having insecure data practices can be enough to incur spending penalties: 31pc reported that they spend less with brands they perceive to have insecure data practices, while over a quarter (26pc) say they stop spending completely if they don’t trust a company with their data.
James Barham, CEO at PCI Pal said: “While security breaches are not new, consumers’ attitudes towards them appear to be changing significantly, with the vast majority of those surveyed now reporting that trust in security practices, or lack thereof, influences not just where but also how, and how much they are prepared to spend.”
The findings suggest that it’s not just online threats that worry consumers – with 76pc reportedly uncomfortable with providing payment information, such as credit card details, over the phone. Almost a third (32pc) said they would hang up and find an alternative payment option, while nearly a quarter (24pc) would ask for an online payment option and a further fifth (20pc) would enquire as to how the data is being captured and whether it is safe.
When looking at the research findings by age group, 41pc of those aged 18 to 24 said they would give their payment security information over the phone with no questions asked, compared to just 14pc of those aged 55 to 65.
Barham added: “What’s really interesting is how consumers are increasingly questioning data security practices. Nearly half of those surveyed know they should check a company’s security processes and 22pc said they question businesses directly or research how an organisation safeguards consumer data. This suggests a real change in how consumers prioritise privacy and security. This should act as a real wake-up call to consumer-facing brands: they need to adopt stronger security practices, especially for those operating contact centres where payments are handled over the phone if they want to keep customers loyal and spending with them.”
Finally, from an industry perspective, consumers were asked which verticals they consider to be the least secure or more likely prone to a security breach, and 41pc of consumers said the financial sector, then 40pc suggesting retail and 35pc the travel industry.
To download a copy of the ‘This Is The UK’ eBook, which includes other findings from the survey, visit: https://www.pcipal.com/knowledge-centre/guides/uk-state-of-security-eyes-of-consumers/.
Method
PCI Pal conducted market research through Atomik Research, surveying 2,002 consumers across the United Kingdom aged between 18 and 65. Visit www.pcipal.com.
