Blog Feed Post

86% of customers would shun brands following a data breach

If credit card details are compromised, shoppers will not return to do business

Surrey, 27 March 2014 - New research commissioned by Semafone® has revealed that the overwhelming majority of people would not do business with a company that had failed to protect its customers' card data. In the survey, conducted by OnePoll, 86.55% of 2,000 respondents stated that they were "not at all likely" or "not very likely" to do business with an organisation that had suffered a data breach involving credit or debit card details. The proportion of women expressing this view was 91.48%, which was markedly higher than the figure of 81.93% for men.

The survey also revealed that other types of data breach would drastically erode customer confidence. Below are the percentages of people who stated that they were "not at all likely" or "not very likely" to do business with an organisation which had suffered breaches involving the following types of personal data:

  • Credit or debit card details 86.55%
  • Home address: 82.95%
  • Telephone number: 80.10%
  • Email address: 76%

Tim Critchley, CEO of Semafone, commented, "These figures serve to underline what we should already know - that the reputational damage suffered by companies who fail to protect personal data can translate directly into a loss of business. The protection of card details is no longer simply a matter of best practice - the economic consequences of a failure to do so are potentially devastating for a business of any size."

The research findings coincide with news that the European Parliament has voted to approve the EU's new data protection legislation, which brings in a number of serious measures in favour of customers. These include a potential fine of 5% of gross revenues for companies who fail to protect customer data adequately, and the requirement to inform local data protection authorities within 24 hours of any breach.

"I can't see how any organisation can continue to ignore the increasingly loud demand from customers to keep personal data safe," continued Critchley. "Our research shows how seriously the public takes the safeguarding of its data, and the new data protection legislation makes effective security even more imperative. Not only will offending companies face the financial penalty of a fine, but they will suffer the immediate negative publicity that comes from the 24 hour disclosure rule. I think we are going to see a great many companies starting to take security a whole lot more seriously. "

Notes to editors

About Semafone's software
Semafone's software allows customers to enter their own card details directly into the telephone handset when they pay over the phone, without losing voice contact with the call centre agent. The tones made by the individual keys are disguised so they cannot be identified by their sound and no card data is taken into the computer and telephony systems of the call centre, making the transaction ultra-secure. To find out more about how calls can be protected using the Secured by Semafone® trustmark, visit www.semafone.com/secured-semafone/shhh

Anyone who has been a victim of fraud can contact the police helpline Action Fraud: 0300 123 2040 http://www.actionfraud.police.uk/

About Semafone
Semafone provides software to contact centres so they can take secure credit and debit card payments over the phone. Using Semafone's patented payment method, card data is transmitted directly from the customer's telephone keypad to the bank. This takes the contact centre out of scope of PCI DSS regulations, removing the threat of fraud and its associated reputational damage.

Semafone serves a wide range of industry sectors including financial services, media, retail, utilities, travel and tourism and the public sector. Customers include the Foreign & Commonwealth Office, Aviva Canada, TalkTalk, Nemo Personal Finance, Sky and Yorkshire Water.

Founded in 2009, Semafone received a £1.9m investment from Octopus Ventures in 2010 and a further £1.5m, primarily from existing investors, in 2012.

Further information about Semafone is available at www.semafone.com.

Semafone and Secured by Semafone are the registered trademarks of Semafone Limited.

About the research
The research was conducted by OnePoll in March 2014.

2000 UK Adults responded to the following question by selecting "very likely", "likely", "not very likely", or "not at all likely".

1. As a customer, how likely would you be to do business with an organisation which had suffered a security breach involving one of the types of personal data listed below?

  • Credit or debit card details
  • Home address
  • Telephone number
  • Email address

For a full copy of the research, please contact
Xanthe Vaughan Williams or Flo Levy
Fourth Day Public Relations
Tel: +44 (0)20 7403 4411
Email: [email protected] or [email protected]

Source: RealWire

Read the original blog entry...

More Stories By RealWire News Distribution

RealWire is a global news release distribution service specialising in the online media. The RealWire approach focuses on delivering relevant content to the receivers of our client's news releases. As we know that it is only through delivering relevance, that influence can ever be achieved.

Latest Stories
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
Enterprises have been using both Big Data and virtualization for years. Until recently, however, most enterprises have not combined the two. Big Data's demands for higher levels of performance, the ability to control quality-of-service (QoS), and the ability to adhere to SLAs have kept it on bare metal, apart from the modern data center cloud. With recent technology innovations, we've seen the advantages of bare metal erode to such a degree that the enhanced flexibility and reduced costs that cl...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, will discuss how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team a...
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Eric Robertson, General Manager at CollabNet, will discuss how customers are able to achieve a level of transparency that e...
As software becomes more and more complex, we, as software developers, have been splitting up our code into smaller and smaller components. This is also true for the environment in which we run our code: going from bare metal, to VMs to the modern-day Cloud Native world of containers, schedulers and microservices. While we have figured out how to run containerized applications in the cloud using schedulers, we've yet to come up with a good solution to bridge the gap between getting your conta...
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
SYS-CON Events announced today that Streamlyzer will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Streamlyzer is a powerful analytics for video streaming service that enables video streaming providers to monitor and analyze QoE (Quality-of-Experience) from end-user devices in real time.
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Established in 1998, Calsoft is a leading software product engineering Services Company specializing in Storage, Networking, Virtualization and Cloud business verticals. Calsoft provides End-to-End Product Development, Quality Assurance Sustenance, Solution Engineering and Professional Services expertise to assist customers in achieving their product development and business goals. The company's deep domain knowledge of Storage, Virtualization, Networking and Cloud verticals helps in delivering ...
Intelligent machines are here. Robots, self-driving cars, drones, bots and many IoT devices are becoming smarter with Machine Learning. In her session at @ThingsExpo, Sudha Jamthe, CEO of IoTDisruptions.com, will discuss the next wave of business disruption at the junction of IoT and AI, impacting many industries and set to change our lives, work and world as we know it.
The IoT industry is now at a crossroads, between the fast-paced innovation of technologies and the pending mass adoption by global enterprises. The complexity of combining rapidly evolving technologies and the need to establish practices for market acceleration pose a strong challenge to global enterprises as well as IoT vendors. In his session at @ThingsExpo, Clark Smith, senior product manager for Numerex, will discuss how Numerex, as an experienced, established IoT provider, has embraced a ...
Today every business relies on software to drive the innovation necessary for a competitive edge in the Application Economy. This is why collaboration between development and operations, or DevOps, has become IT’s number one priority. Whether you are in Dev or Ops, understanding how to implement a DevOps strategy can deliver faster development cycles, improved software quality, reduced deployment times and overall better experiences for your customers.