In the
wake of massive
data breaches at businesses, educational institutions and
medical facilities, consumers are modifying their purchasing
behaviour, including online buying, out of concern for the security
of their personal information, according to the
2007 Consumer Survey on Data Security.
The survey from Vontu, a Data Loss
Prevention solutions firm, and the
Ponemon Institute, a privacy
and information management researcher, found that 62% of
respondents have been notified that their confidential data has
been lost.
The two firms
conclude that the high percentage of individuals that have been
notified of a data loss event has contributed to increased security
concerns, as the vast majority of those notified reported concern
about the event. These data breaches have had a direct impact on
consumer buying behaviour, including reluctance to use their credit
or debit card to make a purchase with a Web merchant they don’t
know, and unwillingness to provide their Social Security number
online.
"Our research
clearly shows that data breaches are affecting consumers’ trust in
the organisations with which they share their data and, ultimately,
their buying behaviour,” said Dr. Larry Ponemon, chairman and
founder, Ponemon Institute.
The study finds
that a majority of respondents are changing their purchasing
behaviour due to heightened security concerns. Nearly two thirds of
respondents have been notified that their confidential data has
been lost; 84% of those respondents reported increased concern or
anxiety due to data loss events; 62% of respondents said that
they would be more upset with a company that lost their information
due to negligence than if that company lost their information as
the
result of
theft.
“We live in a
wide open world where information can very easily be copied, sent
or shared, and over 100 million consumers have been notified of a
breach of their personal information. Unfortunately, this has led
consumers to have significant concerns about the security of their
data,” said Joseph Ansanelli, CEO of Vontu. “Smart companies
understand this and are investing in solutions to protect against
the loss of this sensitive data and ensure the trust of their
customers.”