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Security NewswireCybersecurity News

Nearly Half of Americans Willing to Give Brands a Pass for a Data Breach

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October 18, 2018
New data shows that the U.S. public is surprisingly forgiving despite data breaches and controversies as long as companies demonstrate good faith.
 
The Consumer Attitudes Toward Data Privacy and Security Survey by Janrain also found that 42 percent of U.S. consumers surveyed report at least being open to forgiving the brand, while 7% refuse to forgive brands for allowing bad actors access to their personal data. Fourteen percent have lost all faith in an organization’s ability to protect their data.

Nevertheless, consumers are increasingly taking control of their data into their own hands, the survey found. For example, 71% report downloading software that protects their data privacy or otherwise helps control their web experience. But Janrain’s survey brings good news to brands that are evaluating their consent-based marketing processes and capabilities in response to regulatory requirements or to strengthen customer relations.

If given the option, most people (55%) would let companies they trust use some of their personal data for specific purposes that benefit them in clear ways, the survey found. Only 36% wouldn’t let any company use their personal data. Sixty-six percent like the idea of being able to alert companies when they’re interested in something as long as they could “switch it off” when they’re no longer interested. Only 16% aren’t interested in this even if it came with preferences control.

When Janrain probed to gain more understanding about how effective digital brands have been in using consumer data to personalize their online ads, only 18% said ads “often” seemed to understand their needs, presenting brands with an important area for improvement. The largest bulk of respondents (47%) reported that these ads do seem to understand their needs at least “sometimes” while 26% said ads “hardly ever” understand them. Nine percent said online ads “never” do.

When asked whether they’d walk away from a business that requires personal information up front (like a phone number or email address) in order to conduct business, 15% of those surveyed said “yes” while 24% said “probably.” Fifty-four said it depends on whether the business is trusted or the only option.

Sixty-six percent of those surveyed renewed their call for GDPR-like rules in the United States that force brands to provide consumers with greater privacy, security and control of their personal data. Janrain asked a similar question in May of 2018 to which 69% responded favorably to more regulation in the States. This time, Janrain’s findings show consumers not only want more regulation, they believe it will actually help in the wake of high-profile breaches and controversies affecting well-known organizations such as Yahoo!, Equifax and Facebook. Only 9% believe such laws would be ineffective while only 6% believe more regulation would be too hard on businesses and the economy.

Fifty-nine percent believe achieving data security requires the shared support of consumers, business and government. While 44% report being most concerned about protecting their financial data over all other forms of personal data, a quarter of consumers realize the importance of protecting their passwords, pointing to sound password management as their chief concern. Sixty-one percent say they are very careful about their computer/mobile security. Twelve percent have given up worrying about their computer/mobile security since hackers can break into company networks anyway.

“Our survey is incredibly good news for brands that take the personal data privacy and security of their customers seriously,” said Janrain CEO Jim Kaskade. “Despite high-profile missteps and outright failures in the way brands have approached data privacy and security, consumers are very open to a consent-driven relationship with brands, which will go a long way toward solidifying trust for stronger, longer-term relationships.”

KEYWORDS: cyber security data breach data privacy data security

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