This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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

Don't Put All Data Breach Blame on the Stores

NEW YORK (TheStreet) -- Consumers are pointing a finger at retailers for a rash of security breaches that left shoppers' credit and debit cards vulnerable to identity theft, with 80% of people in a survey saying that having their credit card data compromised is worse than "getting the flu."

According to the nationwide survey of more than 2,000 shoppers by Feedzai, a San Mateo, Calif., data science company, 60% of adults say merchants are "responsible" for data breaches -- including big-name brand retailers such as Target and Neiman Marcus, which each experienced widespread data breaches recently.

"Fraud prevention is now a matter of predicting complex consumer behavior based on changing sentiments," says Pedro Bizarro, chief data scientist of Feedzai. "These findings show that consumers believe it is the merchant's responsibility, but really it is a collective problem that the industry needs to understand in order to distinguish customers from criminals and keep payment data safe."

Retailers may have a case to make saying data breaches are a shared concern for shopper and retailer alike.

"It's convenient to blame merchants who are also easy targets of today's professional criminals, who are well-organized and use sophisticated technology," says Loc Nguyen, Feedzai's CMO. "However, keeping modern commerce safe is a collective responsibility for banks, merchants, government and consumers. The good guys also need to collaborate and fight fire with fire."

Consumers don't see it that way.

Besides the 60% of Americans who say security breaches are the primary responsibility of merchants, online and off, another 13% blame banks. The government is also a popular target of consumers' ire; only 5% of adults say it's up to the individual to prevent data breaches.

In terms of a major inconvenience, having their credit or debit card stolen or compromised is the "most aggravating" of "unpleasant activities" according to Feedzai. Losing a phone, getting a flu and dealing with the registry of motor vehicles fall right behind an identity theft incident.

But only one in five Americans say they will change their shopping habits (switching back to cash, for instance, or shopping more at mom and pop stores).

There's plenty of evidence to suggest that retailers, banks and consumers can all work harder to prevent data breaches and identity theft.

But for consumers, it's going to be hard to fight data thieves with one finger perpetually pointed at their banks and merchants.

No matter which finger it is.

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 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

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