Growing data fears seriously influence consumer loyalty

Data privacy concerns among Australian consumers are widespread and have serious implications for business and customer loyalty, according to new research by PCI Pal.

Almost a third of survey respondents (30%) said they would never return to a business if their personal data was compromised due to poor security practices, while 31% said they would avoid the business “for up to several years”.

Moreover, fears over data security are rife, with 26% describing themselves as “very concerned” about sharing payment information with businesses operating remotely. Almost half of respondents (42%) have become more concerned about data privacy since the onset of the COVID-19 pandemic.

Geoff Forsyth, Chief Information Security Officer at PCI Pal, said the fears are largely valid.

“Cybercriminals are shamelessly opportunistic and are aiming to capitalise on the remote working situation,” he said.

“Hackers are working around the clock to steal data for profit and therefore Australian consumers are rightfully holding businesses accountable for lax data security practices.

“As organisations continue to adapt to the changing business and threat landscape, it is crucial to prioritise data security.

“This includes adjusting business models to meet the highest standards of security and compliance across all customer engagement channels,” he added.

The results were largely consistent with global findings; however, compared with the UK and USA, Australian consumers were slightly more concerned about their data.

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