BOSTON — Consumers believe credit unions and banks do a better job of protecting their financial data than retailers, according to a new global study from ACI Worldwide and Aite Group.
The study of more than 6,100 consumers across 20 countries revealed distrust among consumers in retailers to protect their data.
Almost one-third of global consumers do not trust retailers (e.g., stores, online shopping sites, restaurants, etc.) to protect stored personal and financial data against hacking attempts and data breaches.The report found that 58% of respondents think financial institutions do a better job of protecting their data than do retailers.
The new report, "Global Consumers: Concerned and Willing to Engage in the Battle Against Fraud," revealed that only slightly more than 50% of consumers feel stores where they shop use security systems that adequately protect their financial data against hackers and data breaches.
"Consumer distrust is exacerbated by the widely publicized retail data breaches over the past year," said Mike Braatz, senior vice president, payments risk management solutions at ACI Worldwide in Naples, Fla. "Retailers have their work cut out for them — to change consumer perception that shopping, be it online or in-store, is unsafe."
The study indicates that consumers want to be included in the battle to fight fraud. More than three in four global consumers (77%) are "very interested" in being contacted about suspicious activity on their cards or accounts via a phone call, e-mail or text message.
"Consumers want to engage in the battle against fraud," said Shirley Inscoe, senior analyst, Aite Group. "Financial institutions must take a proactive role in not only engaging customers in fraud-alerting activities, but educating them on preventative measures to take to most effectively combat it."
Inscoe emphasized that communication is key when it comes to FIs making customers aware of the tools available to fight fraud.
"This can have a big impact in customer satisfaction and loyalty," she added.
