Data Security: Consumers Trust Banks Over Retailers

[Audrey McNeil <audrey () riskbasedsecurity com>]

http://www.banktech.com/security/data-security-consumers-trust-banks-over-retailers-/a/d-id/1297540

Last year’s retailer data breaches that exposed millions of card
credentials focused public attention on the issue of cybercrime and data
security. Fortunately for banks, the majority of consumers still trust
financial institutions more than almost any other type of organization to
protect their data, according to a new study by ACI Worldwide and Aite
Group. The report, “Global Consumers: Concerned and Willing to Engage in
the Battle Against Fraud,” found that 58% of the more than 6,100 consumers
surveyed said they believe banks do a better job of safeguarding data than
retailers, governments, or law enforcement agencies.

Retailers have little consumer trust when it comes to data security, the
report found. Only 55% of the respondents said they think that the stores
they frequent deploy security systems of any kind to prevent data breaches.
Also, 29% of the respondents said they don’t trust retailers to protect
their personal and financial data from criminals.

“Retailers have their work cut out for them to change consumer perception
that shopping, be it online or in-store, is unsafe,” Mike Braatz, senior
vice president of payments risk management solutions at ACI, said in
announcement of the study’s results.

The study also found that consumers want to be involved in protecting their
data from fraudsters, since 77% of the respondents said they want to be
contacted about suspicious activity on their payment cards. Some 73% of
those surveyed said they would prefer that their banks don’t post any
transactions to their cards until they’ve responded to a fraud alert. Banks
can use that as an opportunity to strengthen their customer relationships
through better engagement and education that makes their customers feel
safer with their bank, according to Aite Group analyst Shirley Inscoe.

“Consumers want to engage in the battle against fraud. Financial
institutions must take a proactive role in not only engaging customers in
fraud-alerting activities, but educating them on preventive measures to
take to combat [fraud],” Inscoe noted.

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