Home Tech Updates 9/10 Aussies Stop Spending When Personal Information Is At Risk

9/10 Aussies Stop Spending When Personal Information Is At Risk

by Helen J. Wolf
0 comment

According to a new report, nine in 10 Australians would stop spending at a company if their personal information was compromised.

PCI Pal, the global provider of cloud-based secure payment solutions, has released the findings of a study exposing Australian sentiment and behavior around data security and payments following the COVID-19 pandemic.

A significant 90% of consumers admitted that their brand loyalty would be compromised if their data were compromised due to poor data security practices, with 38% of people confirming that they would not make purchases from the company for a few months, 25% would not make purchases for several years, while 27% said they would never return to the company in question. Only 10% of 1005 surveyed said customer loyalty would not be affected.

9/10 Aussies Stop Spending When Personal Information Is At Risk

When asked what it would take to persuade them to return to a brand after an infringement, 43% said they would need confirmation from a regulatory agency or third party that their systems are secure.

As many companies have switched to telecommuting or hybrid working since the pandemic, they need to understand how this can impact consumer confidence in payment processes. 70% of those surveyed said they were concerned about sharing their payment information with organizations whose staff is working remotely or from home. Of these, 43% expressed mild concern, while more than a quarter (27%) said they were very concerned.

Hand over personal information. The research, published in a new report, This is Australia: The State of Security in the Eyes of Australian Consumers 2022, found that while consumers are wary, few automatically vet a company’s security practices before taking steps. Only 27% of consumers ask companies directly or conduct their research into companies’ security practices. Just over half (51%) of respondents said they don’t vet companies before providing personal information, although they believe they should, while 22% of consumers trust their data will be safely treated.

While a thorough check by many consumers may not be the practice, certain red flags can diminish confidence and prevent a buyer from purchasing. Being asked to read payment card details over the phone would lead to 35% of consumers asking for an alternative method. In comparison, nearly a third (31%) told researchers they would be dissuaded from completing a transaction if the payment process felt vague.

Brand reputation plays an important role in consumer payment behavior, with 46% of respondents saying that their comfort level in reading their payment card details over the phone depends on the company they are talking to. More than a quarter (26%) of respondents said they refuse to pay over the phone and complete transactions only online or in person.

Interestingly, since the pandemic, the sectors consumers trust least about their perceived data security practices have changed significantly. In 2019, retail was named by 50% of consumers as the riskiest sector in data security, followed by travel (40%) and the financial sector (36%). PThe ersonal data security sector is mentioned by 44% of consumers, followed by the the government (39%). Just over a quarter (26%) of respondents cited a lack of confidence in retail data processing practices.

The survey also revealed a higher proportion of consumers who trust local organizations with their personal information than national companies. More than half (55%) trust local stores more, with 35% saying they care more about their reputation. In comparison, the other 20% think hackers are less likely to target local organizations because they are too small.

Just over half of respondents spoke from direct experience, and 51% of people confirmed that they had been the victim of a data hack or security breach. Of those, 14% say they have stopped spending money with the brand responsible for the leak, 13% have changed their password, and 5% have switched banks or payment card providers.

“With only 8% of consumers we interviewed saying they are less concerned about how companies have handled their personal data or data security since the pandemic, it is clear that there is some reluctance and companies have to work hard to the steps they’ve taken in place to protect their customers’ personal information,” said Adam Paton, VP Sales ANZ at PCI Pal.

“In fac, those we spoke to said trusting a brand’s security affects their spending with them, and said that if they think the brand is responsible and safe, they’ll spend more on them,” he says.

“Based on the patterns we see among Australian consumers, it is clear that trust in a brand is extremely important. With this in mind, Australian businesses should consider how to build trust from a conservative consumer base seeking safety assurances in future purchases.”

PCI Pal recently opened an office in Sydney, expanding its successful line of trusted payment security solutions into Australia’s extensive pre-existing contact center market. The company further focuses on helping Australian businesses protect customer trust by providing true cloud-secured payment solutions.

You may also like