Data Breaches: What Should Banks, Payments Firms and Merchants Do to Protect Brand Equity and Customer Loyalty?DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/research/026891/data_breaches_wha) has announced the addition of Javelin Strategy & Research's new report "Data Breaches: What Should Banks, Payments Firms and Merchants do to Protect Brand Equity and Customer Loyalty" to their offering. With more than one in ten consumers notified of a data breach in the last year, concern over personal data security and identity fraud is also on the rise. Breaches are about more than identity theft or fraud, placing brand equity and customer loyalty at serious risk. A patchwork of state-by-state notification laws imposes stringent requirements from a consumer-protection standpoint The Standpoint is a newspaper published in the British Virgin Islands. It was originally published under the name Pennysaver, largely as a shopping-coupon promotional newspaper, but since emerged as one of the most influential sources of journalism in the , mandating breached organizations to notify all affected individuals. This report examines the consumer-facing implications of data breaches, and how public perceptions impact reputations and business relationships, particularly those of financial institutions. Using robust consumer data from actual data breach victims as well as data from the 2008 Identity Fraud Survey, Javelin analyzes consumer reactions to breach notification, perceptions of who is at fault, the sensitivity of the data being exposed, and the impact of breaches on consumer financial behaviour, such as payment card usage. In addition, Javelin provides strategic recommendations for breach response and notification, as well as an overview of third-party vendors providing breach resolution services. Primary Questions - In the face of escalating data breaches, what should financial institutions and other companies do to protect brands and customer loyalty? - How do victims respond to breach notification, and how does this impact their relationship with their financial institution? - What kind of sensitive information is being compromised, and how does exposure change consumer behaviour? - Do breach victims use their credit or debit cards debit card, card that allows the cost of goods or services that are purchased to be deducted directly from the purchaser's checking account. They can also be used at automated teller machines for withdrawing cash from the user's checking account. less as a result of the breach? - What are consumers' views of data security, identity theft and fraud as it relates to financial institutions, and FIs' ability to handle breaches responsibly? This report is mainly based on data collected from an online survey of a random-sample panel of 441 data breach victims in May 2008. The overall margin of sampling error is 4.67 percentage points at the 95% confidence level. Data is also taken from the Javelin Annual Household Finance Survey in an online consumer survey that was most recently deployed in March 2008, with a sample size of 2,350 respondents In the context of marketing research, a representative sample drawn from a larger population of people from whom information is collected and used to develop or confirm marketing strategy. . This survey targeted respondents based on representative proportions of gender, age and income compared to the overall U.S. online population. The overall margin of sampling error is 2.1 percentage points at the 95% confidence level. Data was also accessed from the Identity Theft Resource Centre, a non-profit organization A non-profit organization (abbreviated "NPO", also "non-profit" or "not-for-profit") is a legally constituted organization whose primary objective is to support or to actively engage in activities of public or private interest without any commercial or monetary profit purposes. which compiles information about public data breaches to help understand and prevent identity theft. The survey is conducted each year using Computer Assisted Telephone Interviewing Computer Assisted Telephone Interviewing (CATI) is a telephone surveying technique in which the interviewer follows a script provided by a software application. The software is able to customize the flow of the questionnaire based on the answers provided, as well as (CATI CATI Computer-Assisted Telephone Interviewing CATI California Agricultural Technology Institute CATI Center for Advanced Technology & Innovation CATI Carolina Association of Translators & Interpreters ) via Random-Digit-Dialling (RDD RDD Random Digit Dialing RDD RDF (Resource Description Framework) Declarative Description RDD Radiological Dispersal Device RDD Rights Data Dictionary RDD Radiological Dispersion Device RDD Respiratory Drug Delivery ). The total number of respondents was 5,075 in 2007; 5,006 in 2006; 5,003 in 2005; 5,004 in 2004; and 4,000 in 2003. The survey targeted respondents based on representative proportions of gender, age, and income compared to all U.S. adult consumers. For questions answered by all respondents, the maximum margin of sampling error is +/- 1.4% at the 95% confidence level. For questions answered by all 445 identity-fraud victims, the maximum margin of sampling error is +/- 4.7% at the 95% confidence level. For questions answered by a proportion of all identity-fraud victims, the maximum margin of sampling error varies and is greater than +/- 4.7% at the 95% confidence level. Companies Mentioned: - Affinion Security Center Breach Shield - America Online See AOL. - Bill Me Later - BNY BNY Bank of New York Mellon LifeLock - Cover My ID! - Debix PayPal - Equifax - Experian - Forever 21 - Hannaford Bros BROS Brothers BROS Benefits and Retirement Operations Section (King County, Washington) BROS Barnes and Richmond Operatic Society (London, UK) . - ID Experts Breach Respond - Identity Theft 911 - Intersections, Inc. - Kroll Fraud Solutions - MasterCard - Stroz Friedberg, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control - TJX - Trusted ID - US Department of Veteran's Affairs - Visa For more information visit http://www.researchandmarkets.com/research/026891/data_breaches_wha |
|
Printer friendly
Cite/link
Email
Feedback
Reader Opinion