Data Security: Aussie Consumers Spend Less With Brands They Don’t Trust

Smartphone in hand and showing Cyber Security concept on screen
SHARE
THIS



Three out of four (74 per cent) Australian consumers claim their confidence in a brand’s data security influences how they spend money with that brand.

That’s according to new global research conducted by payment security specialists PCI Pal together with cloud telephony platform provider Natterbox.

More than 2,000 consumers participated in the ‘This is Australia’ research which investigated the sentiment towards data security and the impact on consumer behaviour.

The rising rate of credit card fraud, scammer activity and security breaches in Australia is giving consumers pause when they hand over their payment and personal data.

The research revealed that more than one in three (34 per cent) consumers have been a victim of a security breach or hack – the statistics are even greater (40 per cent) for baby boomers and high-income earners.

“The way companies safeguard their customers’ personal data is impacting which brands are trusted and how much consumers spend with those brands,” observed PCI Pal CEO James Barham.

“The combination of high-profile breaches and personal data loss experiences has made data security top-of-mind for Australians when they reach for their wallets,” Barham explained.

Around half (49 per cent) of respondents are not comfortable giving their credit card details over the phone while 56 per cent would opt for an alternative payment method.

One-third of young consumers (aged 18 – 24 years old) claimed to ‘absolutely refuse’ to share their payment information over the phone.

The retail sector was the least trusted industry for protecting the customer’s personal data security.

“At a time when Australian retailers are experiencing challenging times, these findings indicate businesses must take data security seriously to ensure, and in some cases win back, consumer confidence and brand loyalty,” said Barham.

With 43 per cent of consumers saying they would never return to a brand post-breach, and a further 43 per cent reporting they would suspend purchasing in the aftermath of a breach, many Australian consumers are unwilling to forgive a company that compromises their personal data.

The consequences of a security breach are severe and immediate for businesses.

The small business sector in Australia is also perceived to be in the low-trust category.

Over half of consumers surveyed trusted large national companies over small local businesses, based largely on the belief that larger organisations invest more in security.

Natterbox Limited Australia managing director, VP Asia Pacific Charles Heunemann, believes the solution for business is to stay one step ahead of the hackers to protect themselves and their customers.

“Contrary to popular belief, pausing call recording during a Cardholder Not Present (CNP) transaction is not PCI DSS compliant.

“Any consumer-facing business, large or small, should be prepared for the increasing likelihood of an attempted hack and invest in technology that does not require customers verbally give their credit card details over the phone.

“Consumer confidence has been eroded by increasingly common data breaches, so businesses must intensify their efforts to reassure consumers that their data is safe,” he said.

Please login with linkedin to comment

Data Security trust

Latest News

New Talent Agency, Liquorice Plants Roots In NZ
  • Marketing
  • Media

New Talent Agency, Liquorice Plants Roots In NZ

The brainchild of co-founders Gina Williams-Folau (main photo) and Greer Bland, the talent agency Liquorice was born out of a desire to make things easier for brand managers. Liquorice offers social talent for brands wanting to hit the sweet spot with Kiwi audiences. Launching with a roster of big names on board including Millie Elder-Holmes, Athena […]

Anglicare WA Makes Winter Chill Contagious In Campaign Via Wunderman Thompson
  • Advertising
  • Campaigns

Anglicare WA Makes Winter Chill Contagious In Campaign Via Wunderman Thompson

9000 Western Australians experiencing homelessness are about to face cold winter nights. To call for donations to the 2021 Winter Appeal, Anglicare WA has released a chilling video with renowned actor Liam Graham, best known for his starring roles in Greenfield and The Heights, experiencing mild hypothermia after spending one hour in a commercial freezer. […]

Blackmagic Design Helps Create Latest Ad For Chris Hemsworth’s Centr Fitness App
  • Advertising

Blackmagic Design Helps Create Latest Ad For Chris Hemsworth’s Centr Fitness App

Blackmagic Design has shared how its products were used to shoot the latest commercial campaign for Chris Hemsworth’s fitness training app, Centr. The new campaign, which promotes the progressive 10 week workout plan ‘Power’ replicates the same protocols used to prepare the actor for his latest appearance in the upcoming Marvel franchise film, Thor: Love […]

Webprofits To Aggressively Drive Airtasker’s UK Growth Plan
  • Marketing

Webprofits To Aggressively Drive Airtasker’s UK Growth Plan

Airtasker has chosen leading independent digital growth consultancy, Webprofits as a strategic partner to help them expand to new markets. Following a successful IPO in early 2021, Airtasker set its sights on the next strategic objective — expansion and growth in the UK market. After careful review, they partnered with the growth marketing specialists at […]

Cresta’s Awards See Upturn As Ad Spend Starts To Return
  • Advertising

Cresta’s Awards See Upturn As Ad Spend Starts To Return

Cresta Awards has announced that despite having a few more weeks before entries close, this year’s Cresta Awards has surpassed its entries for the whole 2019 Season. Cresta sees this as evidence, not just of evolution in its own awards but of a wider measure of industry confidence and resilience in many markets. The awards […]

Seattle, USA - Aug 19, 2019: The new Google building in the south lake union area at twilight.
  • Technology

Reports: Google Draws The Ire Of EU (Again)

B&T's editor takes great pleasure in an opportunity to use 'ire' in a headline, despite having no idea what it means.

by B&T Magazine

B&T Magazine