This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

New Research Reveals Scale Of Damage To Customer Confidence That Privacy Breaches Can Cause





LONDON, April 18, 2013 /PRNewswire/ -- A global study of consumer attitudes towards company stewardship of personal data conducted by the Economist Intelligence Unit (EIU) shows that data breaches can cause major damage to the business of the companies affected.

The study, written by the EIU and entitled "Privacy Uncovered: Can private life exist in the digital age?", was sponsored by Beazley. It reflects the views of more than 750 consumers around the world, exploring in detail the link between trends in privacy and data security with businesses' use of consumer data. The EIU's report also includes commentary from regulators and business leaders on the study's findings.

More than 32% of respondents in the study said they "strongly agreed" with the statement that, in the event of a data breach, they would cease to do business with the organisation concerned. When they were asked whether they had personally suffered a data breach in the past two years, 23% of respondents said they had. Describing how they had reacted to a breach, 38% said they no longer did business with the organisation concerned "because of the data breach."

"Consumers clearly feel very strongly about the perceived betrayal of trust that a data breach represents," said Paul Bantick, who heads Beazley's Technology, Media and Business Services team in London. "The ripple effects can be very wide – the EIU research also found that 46% of respondents that had suffered a data breach had advised friends and family to be careful of sharing data with the organisation.

"There appears to be a strong willingness not just to cease doing business with a company that loses your data but to tell your family and friends about it – so there's a clear multiplier effect in terms of the reputational damage that can be inflicted," said Mr Bantick.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,238.28 +81.43 0.47%
S&P 500 2,010.66 +9.09 0.45%
NASDAQ 4,587.0260 +24.8370 0.54%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs