Experian Data Breach Resolution Consumer Survey, 2015

1

EDELMAN BERLAND

Experian Data Breach Resolution Consumer Survey

“Data Breaches & Payment Card Fraud”

January 2015

2 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement

WHO HOW MANY ACCURACY WHEN HOW

Adults Nationwide

(18+)n=1,000

Margin of Error =

± 3.1%

Data Collection

Occurred

December 22-30,

2014

Online Survey

RESEARCH OBJECTIVE: To garner media-genic research around consumer perceptions, confidence and behaviors with regard to

securing personal information and monitoring financial transactions

Research Methodology

CONFIDENCE & TRUST


Consumer confidence is soft and many are uncertain about the likelihood of

their personal financial information getting exposed or stolen

Q5: To what extent do you agree or disagree with each of the following statements?

23%

37%

23%

14%

4%

“I feel confident that my personal

financial information is secure.”

15%

21%

30%

23%

11%

“It is unlikely that my personal financial

information will be exposed or stolen.”

Strongly agree

Somewhat agree

Neither agree nor disagree

Somewhat disagree

Strongly disagree

18%NOT CONFIDENT

59%CONFIDENT

34%LIKELY

36%UNLIKELY


Consumers rely on banks and payment card providers to monitor their

accounts for fraudulent transactions


21%

11%

68%

Responsibility for Catching Fraudulent Transactions(Shown: % Agree with each statement)

I am proactive about monitoring

my own financial accounts for

fraudulent transactions.

I rely on my bank and payment

card issuers to alert me of

fraudulent transactions.

Agree with both statements

71%OF CONSUMERS TRUST

THEIR BANKS AND

CREDIT / DEBIT

PROVIDERS TO CATCH

AND ALERT THEM OF

ANY FRAUDULENT

CHARGES


Men and Millennials have the greatest confidence in their financial security

and are most apt to trust banks and card companies


68%

48%51%

25%

69%

48%53%

34%

I feel confident that my

personal financial

information is secure.

It is unlikely that my

personal financial

information will be exposed

or stolen.

Confidence by Gender and Age(Shown: % Somewhat or strongly agree)

Men Women 18-34 65+

74% 73%69% 68%

77% 79%72% 70%

I trust my bank to catch and

alert me of any fraudulent

charges to my account.

I trust my credit / debit

provider to catch and alert

me of any fraudulent charges

to my account.

Trust by Gender and Age(Shown: % Somewhat or strongly agree)

Men Women 18-34 65+


While consumers feel that they are able to monitor their financial

transactions, they acknowledge it can be challenging and time-consuming


79%

74%

55%

43%

I feel that I can keep track of all of my

financial transactions.

I have the tools and resources to

monitor my financial transactions.

Monitoring all of my financial

transactions is challenging.

Monitoring all of my financial

transactions is too time-consuming.

Fraud Monitoring Perceptions(Shown: % Somewhat or strongly agree)

1-2

Credit

Cards

3+ Credit

Cards Men Women

80% 80% 81% 77%

75% 77% 76% 72%

55% 55% 59% 50%

48% 42% 53% 34%


To varying degrees, many consumers have had some recent experience

with financial fraud

Q14: In the past 3 months, have you… ?

Q15: Which of the following describes your personal experience with identity theft / fraud? (Asked if a victim of identity theft or fraud, n=65)

32%

21%

17%

7%

Received a phishing scam

email

Received a notification about

a possible fraudulent charge

Received a data breach

notification letter from a retail

store

Been a victim of identity theft

or fraud

Recent Financial Fraud Experience(Shown: % Experienced in the past 3 months)

66%

29%

18%

17%

My credit / debit card

information was used to

make purchases

A collections notice for an

unpaid bill was on my

credit report

Someone used my medical

insurance information

A new financial account

was opened in my name

Recent Identity Theft Experience(Shown: % Experienced by identity theft victims)

AT LEAST ONE OF THESE50%

HOLIDAY SHOPPING IMPACT


24%

40%

28%

8%

Concern about Stolen Payment Card Information

Very concerned Somewhat concerned

Not too concerned Not at all concerned

Most consumers were concerned about their financial security this holiday

season, especially those recently affected by breaches and fraud

Q6: During the holiday shopping season, how concerned were you about your payment card information being stolen?

36%NOT CONCERNED

64%CONCERNED

64%70%

80% 81%89%

Overall Phishing

scam email

Fraudulent

charge

notification

Data

breach

notification

letter

Identity

theft or

fraud

Concern by Fraud Experience(Shown: % Concerned)


Many shoppers report paying more with cash and credit, rather than debit

cards, this holiday season

Q7: How, if at all, will / did recent retail data breaches impact the way you make / made purchases during the holiday season?

36%

22%

16%

15%

13%

12%

8%

40%

23%

25%

18%

14%

14%

Pay with cash more

Pay with credit cards instead of debit cards

Shop at stores that had a data breach less / not at all

Pay with debit cards less / not at all

Pay with credit cards less / not at all

Shop online less / not at all

Pay with store credit cards less / not at all

Data Breach Impact on Purchase Type(Shown: % Actual and Anticipated)

Actual Anticipated

OF RESPONDENTS SAY DATA BREACHES AFFECTED THE WAY THEY SHOPPED64%

Shown: (% Actual)

Data

Breach

Victim

Not

Breach

Victim

ID

Theft

Victim

Not ID

Theft

Victim

40% 35% 40% 36%

28% 20% 28% 21%

24% 14% 26% 15%

18% 14% 22% 14%

20% 11% 20% 12%

20% 11% 28% 11%

13% 7% 14% 8%


One in five shoppers did not make holiday purchases at stores that had a

data breach

Q8: How, if at all, did recent retail data breaches impact where you made purchases during the holiday season?

21%

20%

19%

17%

Shop at stores that had a data breach but did not use a debit

card to pay for purchases

Was concerned about shopping at stores that had a data

breach but did so anyway

Didn’t shop at stores that had a data breach

Shop at stores that had a data breach but did not use a credit

card to pay for purchases

Data Breach Impact on Shopping Location(Shown: % Selected)

OF RESPONDENTS SAY DATA BREACHES AFFECTED THEIR SHOPPING BEHAVIORS48%

Data

Breach

Victim

Not

Breach

Victim

ID

Theft

Victim

Not ID

Theft

Victim

33% 18% 34% 20%

30% 17% 29% 19%

15% 19% 23% 18%

22% 15% 23% 16%

FRAUD MONITORING


During the holiday shopping season, most engaged in multiple monitoring

activities

Q9: How, if at all, did you monitor for fraud over the holiday shopping season?

61%

39%

32%

25%

24%

14%

9%

Check bank or payment card statements

online

Check mailed bank or payment card

statements

Pay attention to news for retail data

breaches

Check bank or payment card statements

on a mobile app

Check credit report

Use a paid credit monitoring service

Use personal finance management

software

Fraud Monitoring Activities(Shown: % Done over the holiday shopping season)

MONITORED THEIR CREDIT

Data

Breach

Victim

Not

Breach

Victim

ID

Theft

Victim

Not ID

Theft

Victim

67% 60% 52% 61%

42% 38% 37% 39%

41% 31% 31% 32%

41% 21% 38% 24%

36% 22% 35% 24%

25% 12% 25% 13%

16% 8% 18% 9%

33%ENGAGED IN 2 OR MORE MONITORING ACTIVITIES60%


Data breach victims and consumers who check their statements on a mobile

app review their transactions more regularly

Q10: How often did you check your bank / payment card statements for possible fraud over the holiday shopping season? (Asked if checked bank / payment

card statements, n=808)

Q13: Generally, which of the following best describes how you interact with your credit card statements before paying them? (Asked among credit card users,

n=870)

70%

23%

7%

Interaction with Credit Card Statements(Shown: Among credit card users)

Thoroughly review transactions

Skim transactions

Do not review transactions

21% 17% 12%

79% 83% 88%

Overall Data breach

victims

Check statements

on mobile app

Statement Monitoring Frequency(Shown: Among those that check statements)

Less than weekly Weekly or more


Consumers that check their statements on a mobile app or monitor their

credit have greater confidence that their financial information is secure

Q5: To what extent do you agree or disagree with each of the following statements? “I feel confident that my personal financial information is secure.”

Q9: How, if at all, did you monitor for fraud over the holiday shopping season?

68%72%

Do not check statements Check statements on

mobile app

Confidence & Statement Monitoring(Shown: % Confident in financial security)

55%

68%

Do not monitor credit Monitor credit

Confidence & Credit Monitoring(Shown: % Confident in financial security)


One in four consumers plans to monitor their credit more vigilantly in 2015

Q11: Which, if any, of the following are your 2015 New Year’s identity theft and fraud protection resolutions?

32%

31%

29%

27%

26%

24%

21%

17%

14%

11%

Monitor my payment card transactions more often

Limit what personal information I provide to businesses

Monitor my payment card transactions in more detail

Shop more with cash instead of using credit or debit

Create new / more complex passwords and PINs

Check my credit report more often

Purchase / update my anti-virus and antimalware

Shop more with a credit card instead of using debit

Enroll in identity theft protection / credit monitoring

Use personal finance management software

2015 New Year’s Resolutions

26%OF CONSUMERS

ARE RESOLVED TO

CHECK THEIR

CREDIT REPORT

MORE OFTEN OR

ENROLL IN CREDIT

MONITORING IN

2015

Experian Data Breach Resolution Consumer Survey, 2015

Business

Transcript of Experian Data Breach Resolution Consumer Survey, 2015