6/27/2014 - Poll: Businesses aren't sufficiently protecting consumers' identity
Perhaps due, in part, to the information breaches at national retail chains Target and Neiman Marcus - where the financial data from millions of consumers was exposed - Americans are not impressed by what U.S. companies are doing to increase their security profile to prevent similar incidents from taking place, according to the results of a new poll.
When asked about what social issue was most worrisome, nearly 9 in 10 respondents - 87% - cited online security, independent analysis firm Radius Global Market Research found in its survey. Additionally, a similarly large percentage cited other issues surrounding cyber security, among them online security, online privacy, identity theft and fraud.
"More than half of the consumers we surveyed had personal experience with identity theft," said Mark Menee, senior vice president at Radius GMR. "A majority of consumers are very aware of what's personally at risk when a security breach occurs."
The poll also found that consumers would be willing to no longer patronize businesses that put their personal information in harm's way. Specifically, nearly 70% indicated that if they felt their privacy was put in jeopardy, they would end the relationship with said company.
Not only for the sake of customer satisfaction, but cyber security may also be advantageous from an economic standpoint, Menne pointed out.
"Interestingly, half of consumers are willing to pay more for a product or service if they believe the company values their privacy more," said Menne. "There is a significant reward for those companies that earn a reputation for doing a good job."
Business owners can't afford the repercussions of a data breach, both in terms of public relations and financial wellness. However, far too few consider it to be a priority. CyCurity® is a businessowners insurance plan from Selective that provides entrepreneurs and small businesses with the protection they need in order to rebound should a cyber-loss or security breach occur.
For more information on CyCurity® and how it can benefit your business, please be sure to speak with your local Selective agent.