Consumers feel less confident than businesses that data security is taken seriously
Canadian businesses are failing to prioritize data protection and remain in denial of the consequences of a data breach, according to a report released Monday by Shred-It.
The company’s Data Protection Report said Canadian businesses are overconfident in their approach to information security, yet consumers are more concerned than ever.
“The findings of this year’s report should act as a wake-up call for Canadian business leaders,” said Pete Vincett, vice-president of Stericycle Canada, provider of Shred-it information security solutions, in a news release. “One data breach can have a devastating impact across all aspects of a business. Canadian C-suites and small business owners need to rethink their current practices and take action to implement stronger precautionary measures, or suffer the financial and reputational repercussions.”
Here are some key findings from the survey, which was conducted by Ipsos:
- Companies believe they are improving at protecting sensitive information, however consumers feel less confident that their data security is taken seriously. In fact, consumers are twice as likely to report that their personal data security has declined (50 per cent less secure), as opposed to improved (23 per cent more secure), compared to 10 years ago;
- C-suite and small business owners recognize data security risk, but underestimate the consequences. Although the majority of C-suites (66 per cent) confirm they are likely to report a data breach over the next five years, many (47 per cent) report that data breaches are “no big deal” and that they are “blown out of proportion;”
- Human error is often the main cause of a data breach. Fifty-two per cent of C-suites and 40 per cent of small business owners report human error or accidental loss by employee/insider to be the main cause of a data breach;
- 63 per cent of consumers are concerned that their private and personal information in paper format is “out there” and 82 per cent of consumers believe that a data breach is a “big deal;”
- 34 per cent of C-suites and small business owners report that their organization would lose trust if they suffered a data breach, yet millennials (ages 18 to 34), who make up the dominant consumer pool, are less forgiving and would be most likely to lose trust (43 per cent versus 33 per cent 35-plus), seek compensation (33 per cent versus 18 per cent) and tell others about a breach (39 per cent versus 29 per cent).
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