Three out of four (74%) Australian consumers claim their confidence in a brand’s data security influences how they spend money with that brand, according to new global research conducted by payment security specialists PCI Pal together with cloud telephony platform provider Natterbox.
More than 2,000 consumers participated in the ‘This is Australia’ research which investigated the sentiment towards data security and the impact on consumer behaviour.
The rising rate of credit card fraud, scammer activity and security breaches in Australia is giving consumers pause when they hand over their payment and personal data. The research revealed that more than one in three (34%) consumers have been a victim of a security breach or hack – the statistics are even greater (40%) for baby boomers and high-income earners.
“The way companies safeguard their customers’ personal data is impacting which brands are trusted and how much consumers spend with those brands,” observed James Barham, CEO at PCI Pal. “The combination of high-profile breaches and personal data loss experiences has made data security top-of-mind for Australians when they reach for their wallets,” Barham explained.
Around half (49%) of respondents are not comfortable giving their credit card details over the phone while 56% would opt for an alternative payment method. One third of young consumers (aged 18 - 24 years old) claimed to ‘absolutely refuse’ to share their payment information over the phone.
The retail sector was the least trusted industry for protecting the customer’s personal data security.
“At a time when Australian retailers are experiencing challenging times, these findings indicate businesses must take data security seriously to ensure, and in some cases win back, consumer confidence and brand loyalty,” said Barham.
With 43% of consumers saying they would never return to a brand post-breach, and a further 43% reporting they would suspend purchasing in the aftermath of a breach, many Australian consumers are unwilling to forgive a company that compromises their personal data. The consequences of a security breach are severe and immediate for businesses.
The small business sector in Australia is also perceived to be in the low-trust category. Over half of consumers surveyed trusted large national companies over small local businesses, based largely on the belief that larger organisations invest more in security.
Charles Heunemann, Managing Director, VP Asia Pacific of Natterbox Limited Australia believes the solution for business is to stay one step ahead of the hackers to protect themselves and their customers.
“Contrary to popular belief, pausing call recording during a Cardholder Not Present (CNP) transaction is not PCI DSS compliant. Any consumer-facing business, large or small, should be prepared for the increasing likelihood of an attempted hack and invest in technology that does not require customers verbally give their credit card details over the phone. Consumer confidence has been eroded by increasingly common data breaches, so businesses must intensify their efforts to reassure consumers that their data is safe,” he said.
The full research report and e-book “This is Australia” is available for free download, here.
PCI Pal and Natterbox conducted market research through YouGov Galaxy, surveying 2,023 consumers across Australia aged between 18 and 64 years with annual incomes between $35,000 and $700,000 to uncover customer service preferences and security concerns when sharing personal information online and over the telephone. The survey findings highlighted changing behaviours and considerations for consumers in 2018 and into 2019 around data privacy, brand trust and impact on spending resulting from security breaches.
About PCI Pal
PCI Pal is the specialist provider of secure payment solutions for contact centres and businesses taking Cardholder Not Present (CNP) payments. PCI Pal’s globally accessible cloud platform empowers organisations to take payments securely without bringing their environments into scope of PCI DSS and other card payment data security rules and regulations.
With the entire product portfolio served from PCI Pal’s cloud environment, integrations with existing telephony, payment, and desktop environments are simple and light-touch, ensuring no degradation of service while achieving security and compliance.
Natterbox launched in 2010 to solve business telephony issues and bring voice into the digitised customer experience through a global cloud PBX service that captures and integrates voice into customer processes. Over 500 organisations around the world rely on Natterbox to set new standards in customer experience, drive measurable increases in sales efficiency, competitive advantage and organisational success. Customers include Naked Wines and Insure 247. For more information about Natterbox visitnatterbox.com