Consumers don't trust retailers on personal data security

Security

by CBR Staff Writer| 23 July 2014

China and India topped the list of prepaid card fraud.

Twenty nine per cent of consumers across the globe do not trust retailers when it comes to protecting their stored personal and financial information against hacking attempts and data breaches.

Over half (55%) of consumers do believe retailers deploy safe security systems to protect personal financial data from hackers.

The study, 'Global Consumers: Concerned and Willing to Engage in the Battle Against Fraud', conducted by ACI Worldwide and Aite Group noted that China and India topped the list of prepaid card fraud, with 17% and 18% respectively.

Mike Braatz, ACI Worldwide Payments Risk Management Solutions senior vice president said: "Consumer distrust is exacerbated by the widely publicized retail data breaches over the past year."

More than half believe their data remains safe with financial institutions than retailers, the report revealed.

"Retailers have their work cut out for them - to change consumer perception that shopping, be it online or in-store, is unsafe," Braatz added.

Three in four global consumers are very concerned about contact made by phone about suspicious activity on their cards.

Aite Group analyst Shirley Inscoe said: "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 preventative measures to take to most effectively combat it.

"Communication is key when it comes to financial institutions making customers aware of the tools available to fight fraud.

"This can have a big impact in customer satisfaction and loyalty."

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