NEW YORK (10/26/15)--Consumers have seemingly lost faith in a retailer’s ability to keep their personal payment information secure, a recent report from Capgemini Consulting has found.
Nearly 95% of the 220,000 consumers surveyed relayed serious doubt if a retailer could protect their data in the event of a cyberattack, according to the report “Privacy Please: Why Retailers Need to Rethink Personalization” (Pymnts.com Oct. 23).
Consumers worldwide were polled for the survey.
The report also revealed that retailers garnered negative feelings from consumers related to data security when found to be using frowned-upon activities such as in-store traffic monitoring and facial recognition.
“The deluge of hacks on retailers’ data and misdirected personalization initiatives are having a dramatic effect on consumers’ trust,” said Kees Jacobs, Capgemini Group global consumer and retail consumer engagement lead (Pymnts.com). “The advent of digital shopping and big data analytics promised a golden age for retailers, but many of the world’s largest brands are finding the reality of safeguarding and properly utilizing this precious information very challenging.”
CUNA continues to urge lawmakers to ratchet up requirements imposed upon retailers regarding data security. Merchant requirements fall far short of those mandatory for financial institutions, leaving a critical gap in the security of the payments network, CUNA has said.