Data breaches making consumers more wary of shopping online, new study says
A new study from the Ponemon Institute and Vontu, a data security provider, notes that
36% of U.S. consumers will not use a payment card to make a purchase at an unknown web merchant because of overall concerns about security breaches in networked data.
The “2007 Consumer Survey on Data” also found that 62% of respondents have been notified about a loss of their confidential data in computer networks, and that 84% of those respondents reported an increased concern or anxiety regarding security of their personal information including credit card account numbers and passwords.
"Our research clearly shows that data breaches are affecting consumers` trust in the organizations with which they share their data and, ultimately, their buying behavior," says Larry Ponemon, chairman and founder of the Ponemon Institute.
“Over 100 million consumers have been notified of a breach of their personal information,” adds Vontu CEO Joseph Ansanelli. “Unfortunately, this has led consumers to have significant concerns about the security of their data."
The study also found that 62% of respondents said they would be more upset when a company lost their personal data because of negligence than if the loss had resulted from theft.
Although companies are required by law to inform consumers of data security breaches, such notification makes consumers less likely to use their payment cards online, the study says. 43% of respondents who had been notified of a security breach said they were “cautious” about using a credit card on the web, compared to 32% who had not been notified of a security breach. The percentages were similar for online use of debit cards.
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