Global survey by Gemalto reveals impact of data breaches on customer loyalty + benoeming.

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Algemeen advies 10/12/2015 07:39
Nearly two-thirds of consumers surveyed say they are unlikely to do business again with a company that had experienced a data breach where financial information was stolen.

AMSTERDAM - December 10, 2015 - Nearly two-thirds (64%) of consumers surveyed worldwide say they are unlikely to shop or do business again with a company that had experienced a breach where financial information was stolen, and almost half (49%) had the same opinion when it came to data breaches where personal information was stolen. This is according to a recent global survey by Gemalto (Euronext NL0000400653 GTO), the world leader in digital security, titled "Broken Trust: 'Tis the Season to Be Wary", which surveyed 5,750 consumers in Australia, Brazil, France, Germany, Japan, United Kingdom and United States.

Key Findings
The survey findings are revealing as more consumers rush to complete their shopping during the holiday season. Six in ten people surveyed (59%) believe that threats to their personal information increases during the festive season, and two in ten (18%) believe that they are likely to be a victim of a breach during the holiday season.

Confidence in corporate data security is low
Only a quarter (25%) of all respondents feel that companies take the protection and security of customer data very seriously. More than twice as many respondents feel that the responsibility of protecting and securing customer data falls on the company (69%) versus the customer (31%). Of the employed respondents, only around two fifths (38%) feel that their employer takes the protection and security of employee data very seriously.

Consumers have been hit hard before
The survey revealed that 31% of respondents have already been affected by data breach in the past. Around four in ten state the most likely causes for being a victim of a breach are visiting a fraudulent website (42%), phishing attacks (40%) or clicking a fraudulent web link (37%). The emotional impact of data breaches has also created apprehensive feelings towards businesses with nearly one fifth surveyed (19%) feeling they are likely to be a victim of one within twelve months to three years.

Ninety percent of surveyed consumers feel that there are apps and websites that pose significant risks to the protection and security of their personal information. Fifty-five percent believe that social media sites expose them to the greatest risk, and around two in five respondents believe adult content and torrent apps/websites carry the greatest risk to the security of personal information.

Customers are getting increasingly impatient with breached companies
Around a quarter (23%) of respondents who have been a victim of a data breach, either have, or would, consider taking legal action against the breached company involved in exposing their personal information. Almost half (49%) of respondents said they would take or would consider taking legal action against any of the parties involved in exposing their personal information.

Security is a two-way street
However, the consumer is not completely absolved of responsibility. Despite the many risks involved, the survey also found that a majority (54%) of respondents are using the same password for all or some of their online accounts. Of the respondents who actively use social media accounts, only a quarter (25%) use two-factor authentication to secure all of their social media accounts. Of the respondents who actively use online/mobile banking, around three fifths (58%) say that all of their banks use two-factor authentication to secure their internet banking. This isn't as widespread amongst retailers, however. Of the respondents who actively use online retail accounts, one in four (25%) state that all of the online retail apps/websites they use, require two-factor authentication to secure online transactions.

"The media coverage of massive data breaches has done little to instil consumers' confidence in how well companies, big and small, are protecting their data," said Jason Hart, Vice President and Chief Technology Officer for Data Protection at Gemalto. "The fact that employees don't even feel that their employers are taking the protection of their personal data security very seriously rings alarm bells. Either companies need to increase their security measures or, assuming that they already have these in place, they need to communicate this to their customers."

"As companies collect ever-increasing amounts of customer data and as our digital interactions become more diverse, more data about what we do, who we are and what we like is being stored online," continued Hart. "The survey proves that the traditional data security mind-set needs to evolve, this goes for companies and consumer adoption of advanced security measures like two-factor authentication. Otherwise, an increasing numbers of consumers will cut ties with companies who aren't taking data protection seriously, and take their business to someone they can trust."

About the Survey
Independent technology market research specialist Vanson Bourne was commissioned by Gemalto to undertake the research on which this report is based. 5,750 consumers were interviewed during October and November 2015. 1,500 interviews in the US, 500 in Brazil and 750 in each of the following countries: UK, Australia, Japan, France and Germany. To qualify for the study, consumers had to actively use online/mobile banking, social media accounts or online retail accounts.

Related Resources
Customer Loyalty and Data Breach Report
Customer Loyalty and Data Breach Infographic

Gemalto Board member Arthur van der Poel anticipates the end of his mandate in view of a new assignment

Amsterdam, December 10, 2015 - Gemalto (Euronext NL0000400653 GTO) today announces that one of its Board members, Arthur van der Poel, will leave the Board of Directors of the Company on December 31, 2015. Mr. van der Poel's current mandate, his third and last term, was to end at the next Annual General Meeting of Gemalto, on May 19 2016. With the full support of the Board, he has decided to leave in order to accept a new assignment.

Initially appointed as a Board member of Axalto in 2004, Arthur van der Poel has been instrumental in helping to achieve many key milestones of the Company, including its initial public offering (IPO) and the merger with Gemplus, which in 2006 created Gemalto, the world leader in digital security. His strong knowledge of the microelectronics and technology industries combined with his firm commitment to good corporate governance was highly valued by the Board. The Board is most grateful for the many contributions Mr. van der Poel has made during his nearly 12 year tenure on the Board.

The nomination of a new Board member to replace Mr. van der Poel will be proposed at the next Gemalto Annual General Meeting of shareholders, which will be held in May 2016. Mr. Philippe Alfroid has been nominated by the Board to replace Mr. van der Poel as Chairman of the Compensation Committee as of January 1, 2016.





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