AUSTIN, Texas (10/21/14)--Nervous over recent data breaches that have compromised tens of millions of pieces of personal and personal payment data in recent months, a poll has found that nearly half of credit and debit card users will be leery to shop this holiday season at those stores where attacks have occurred.
About 45% of respondents to the CreditCards.com survey, released Sunday, said they would either definitely or probably avoid one of their go-to stores when holiday shopping if that store was recently hacked.
Broken down, 16% said they definitely would not shop at a store that had been breached, and 29% said they would probably not shop there.
Only one in eight respondents said they are actually more likely to shop with cards this year. The study, which randomly selected 865 U.S. consumers, was conducted in early October by Princeton Survey Research Associates International for the Austin, Texas-based CreditCards.com.
Consumers first react to a data breach with fear, but then they may become numb, David Just, professor of applied economics management and director of graduate studies at Cornell University in Ithaca, N.Y., told CreditCards.com. "I'm guessing a lot of people have the initial emotional reaction of, 'Wow, I don't want to shop there anymore if they're going to be that loose with the data.'"
The question then becomes, what does it take for a consumer to return?
That may hinge on what other options are available, according to Jeff Foresman, information security compliance lead at Rook Security in Indianapolis (CreditCards.com).
For retailers such as Target, where customers have other options for shopping, it may lead to the long-term loss of that consumer, Foresman said. However, if a building contractor has a business account with a retailer such as Home Depot, for example, he or she may not look somewhere else.
The Credit Union National Association continues to press national lawmakers to pass legislation that would require merchants to meet the same strict payment data security standards imposed upon financial institutions. Credit unions nationwide saw 4.6 million of their cards compromised as a result of the Target breach, leading to about $30.6 million in breach-related costs.
CUNA also is collecting information on the financial and operational impact the Home Depot breach has had on credit unions. Completed surveys from credit unions affected by that breach are due Friday.
For more information on the comprehensive campaign CUNA has put together to fight for tougher regulations on data security for merchants, visit StopTheDataBreaches.com.
Additional findings from the CreditCards.com survey include: