Three out of four consumers will go elsewhere rather
than do business with a company that has publicly breached customer
confidentiality.
This finding comes from a
survey of 1,500 consumers by
credit-vetting agency
Experian. It suggests how effective a law could be that
compelled companies to disclose such breaches, as recommended last
week by the
House of Lords Select Committee on Science &
Technology.
Experian found that 37% of financial services organisations and
27% of retailers think that identity fraud publicity would have no
effect on their reputation. "This is wildly out of touch with
consumer opinion," the credit agency said.
The lords backed Experian's view. "The steps currently being
taken by many businesses trading over the internet to protect their
customers' personal information are inadequate," they said.
"The refusal of the financial services sector in particular to
accept responsibility for the security of personal information is
disturbing, and is compounded by apparent indifference at
government level."
Experian fraud expert Anne Green said, "Companies are clearly
blind to the negative publicity associated with identity fraud.
They are not only playing Russian roulette with their own exposure
to potential fraud, but also with their customers'."
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