Main Street vs. Wall Street: Who is to Blame for Data Breaches?
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Transcript of Main Street vs. Wall Street: Who is to Blame for Data Breaches?
MAIN STREET vs. WALL STREET
Consumers expect more preventative action from retailers, instead of the banks and card issuers
Data security issues have significant bottom line impact
Compared to banks and card issuers, consumers cast more blame on retailers
Retailers, banks and card issuers are divided over who is at fault for the recent data breaches at some large U.S. retailers. Retailers say that banks and card issuers are to blame for issuing unsecure debit and credit cards.
Banks and card issuers say that retailers are at fault for lacking necessary security features on their networks.Who do consumers side with?
Average cost of a data breach per organization2
Of consumers have reported boycotting affected retailers
Average decrease in stock price 12 months after a data breach3
$5.5 million34% 11%24%Of consumers have started
shopping more at online retailers
Retailers face a difficult opinion environment
Find it fair that retailers—not the credit card issuer—should be financially responsible for fraudulent charges
that result from a data breach
Believe the fault is with retailers for lacking
the necessary security measures instead of
banks and card issuers for issuing cards with
faulty technology
State the best defense is for retailers to strengthen retail
networks over making debit and credit cards
more secure
Despite high marks for industry reputation relative to the
banking industry1…
Criminals Retailers Banks
79% 61% 34%
58% Positive view of retailers
15% Negative view of retailers
Have seen, read, or heard about recent retail data breaches
83% Are concerned about data breaches at retailers
94% Believe retailers are not doing enough to prevent data breaches
75%
Methodology: Brunswick surveyed 750 consumers online on January 24, 2014. 1 Harris interactive - 2013 RQ Summary Report2 Open security foundation/datalossdb.org; Institute “Cost of a Breach Study”, 20113 Brunswick Group 2014: “Insight Analysis of Major Data Breaches at Publicly Traded Companies – Main Street vs. Wall Street: Who is to Blame for Data Breaches?”
Who is to Blame for Data Breaches?
25% Positive view of banks
54% Negative view of banks
Consumers are nearly as likely to hold retailers responsible for breaches
(61%) as the criminals themselves (79%), rather than blaming banks
and card issuers (34%)
In this situation, retailers don’t get the benefit of the doubt