Business owners are far more concerned that their personal data could be stolen and misused than they are that their companies could be the source of a data breach, according to a report released Tuesday.
Data breaches ranked last on a list of major business concerns, according to the report from the Scottsdale, Ariz., anti-fraud software and services provider Identity Theft 911 LLC.
Government fines, being named in a lawsuit, bankruptcy, and natural disasters all ranked higher.
Though 45% of the 1,521 executives surveyed said they were more concerned about data breaches than previously, almost 40% of the overall sample said they had no plans in place to deal with a breach, nor had they made any arrangements with an outside vendor to help them address a breach, if one occurred.
And though 86% of the respondents said that protecting customers' personal data is a priority, and 83% said that being the source of a breach would adversely affect their companies' reputations, almost one-third said they did not encrypt personal data about customers or employees, and 34% said they had no no mechanism in place to spot a breach if one occurred.
About 76% of the executives said they are more concerned now than in previous years that criminals could steal their personal data and use it for fraudulent purchases.
"The survey confirms a head-in-the-sand mentality regarding the threat to businesses today, which we call a 'data breach awareness gap'," Identity Theft 911's chief fraud officer Judd Rousseau said in a press release.
"Many decision makers still haven't implemented the proper security measures to protect their companies, customers, and employees."
The report was based on an April survey by Zogby International.
Four percent of respondents said their companies had been involved in breaches and that the incidents were usually the fault of outside vendors, or due to the loss or theft of a physical device containing data files.
About 44% said a breach would have little or no financial impact on their businesses, though another 22% said they could not estimate the cost of a breach.
