Data security puts reputations at risk

A new survey shows UK firms are losing business due to inadequate data security

LONDON – Two-thirds of consumers would desert any company endangering their data security, finds a study by CreditExpert.co.uk, the credit monitoring and identity fraud protection service from Experian. The results have highlighted growing consumer concern over the threat of electronic crime.

The survey shows that 65% of consumers would abandon a firm that compromised their personal data, with 24% confirming they would seek legal advice. CreditExpert’s study appears in the wake of a series of data compromises from businesses such as Monster.com, whose personal databases have been compromised by hackers.

E-crime is growing rapidly. Security consultancy Garlik earlier this month reported a 32% increase in annual UK online financial crime. This latest study reflects this rise – 22% of respondents claimed to know a victim of identity fraud. Darryl Bowman, commercial director of CreditExpert, says: “More of us have become concerned about the capacity of the organisations we deal with to hold personal data securely.”

The growing consumer experience of e-crime, the publicity surrounding recent breaches, and the scale of the threat make it essential for companies to implement operational solutions to defend against attacks. Firms must engage in damage limitation to reduce the impact on their reputation and to help rebuild trust.