Americans more likely to stop dealing with a brand after a breach but Brits hold a grudge for longer

US v UK

New research into consumer trust and spending habits by contact center payment security company PCI Pal shows 62 percent of Americans report that they will stop spending with a brand for several months following a hack or breach, versus 44 percent of Brits.

But when the British do react they do so for the long term, 41 percent of British consumers never return to a brand after a hack compared to only 21 percent of Americans.

Perception of security is important too -- 31 percent of UK consumers state that they spend less with brands they perceive to have insecure data practices, compared to just 18 percent of US survey respondents.

"While security breaches are not new, consumers' attitudes towards them appear to be changing significantly. This seems particularly prominent in the UK which suggests that the focus on GDPR has had a tangible impact on how British consumers view the value of their data, and business' role in protecting it," says James Barham, CEO at PCI Pal.

Security concerns extend to the phone too. More than half (56 percent) of all UK respondents reportedly dislike sharing credit card details verbally over the phone -- in contrast just one in four Americans share this concern. Despite the wealth of online security threats, around a third of consumers on both sides of The Atlantic prefer online payment methods -- 38 percent of Americans and 32 percent of Brits would look for an online alternative rather than share payment details verbally.

The retail and travel industries are seen as least secure on both sides of the Atlantic, 19 percent of Americans and 40 percent of Brits see retail as a risky business when it comes to their personal data, while 16 percent of Americans and 35 percent of Brits see the travel sector as the most insecure. Generally speaking, the UK is leading a growing trend in all-around awareness and concern in the matter of data security -- a trend which Americans are now gradually catching on to.

Barham concludes:

Awareness of data security is something that is on everyone’s radar, yet our UK and US surveys have highlighted some real differences of opinions and traits, when comparing attitudes on data and payment security between the two countries.

UK consumers certainly seem more guarded with providing personal information, such as payment card details, over the phone. Similarly, if a security breach has occurred at an organisation, Brits appear more likely to avoid that organization in the future, and instead go elsewhere. In my opinion, 2019 is the year that organizations need to take steps to provide far clearer assurances to consumers as to just how their data is being captured, processed and stored.

You can read more about the findings from the US and UK versions of the report available from the PCI Pal site.

Image credit: Niyazz / Shutterstock

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