In addition to the pandemic, data security concerns are set to influence how and where people do their Christmas shopping this year. That’s according to a recent survey by PCI Pal (a global provider of cloud-based secure payment solutions). The research found that 74% of UK consumers would not shop with an organisation if they were aware that it had been the subject of a data breach or hack in the last 12-months.
In addition, following a spate of high-profile cyberattacks and fraud during the pandemic, 45% of those surveyed said they were ‘slightly more concerned’ about data security than usual, while 28% said they were feeling ‘much more concerned’.
Commenting on the report, Geoff Forsyth, CISO of PCI Pal said, “While shoppers have told us that the way they shop has changed – largely driven by the pandemic – what is clear is that loyalty reigns; almost 6 out of 10 people said they will continue to shop with the same retailers using their digital shopping channels, instead of visiting their stores, this year.
“There is however a far greater emphasis on digital shopping due to the pandemic and therefore retailers should prioritise data security in order to capitalise on the peak festive season spend.”
At Keller Postman UK, we understand the data privacy concerns felt by UK shoppers. Not least because, our clients have experienced significant, and often devastating consequences after a retail data breach. For example, after the Dixons Carphone Warehouse data hack, which saw cybercriminals access 5.9 million payments cards that had been used at Currys PC World and Dixons Travel stores, many of our clients went on to experience financial fraud and significant levels of emotional distress. As a result of this data privacy failure, Dixons was fined £500,000 by the Information Commissioner’s Office (ICO). Why should people trust retailers who have been proven to let their customers down?
Sharing his views on the findings, expert data protection lawyer Matthew Evans said:
“There is no doubt that 2020 has been a challenging year for retailers. And, as an increasing number of shoppers left the high street and moved online – often for the first time – many sellers had to adapt quickly, either to set up new online stores or enhance their current digital capabilities. But unfortunately, as retailers sought to boost their e-commerce environments, many did not prioritise data protection, and that has created a data breach timebomb.
“With the Covid-19 pandemic refusing to abate, data protection must be made a priority. Not least because – for those that retailers that don’t – the latest findings highlight that their customers won’t forgive or stand by them. And the additional challenge of a lack of consumer trust at an already difficult time could prove devastating.”
Get justice for a retail data breach
Many retailers use online shopping and in-store technology to boost profits and make the buying process easier. But when moving to a digital model, too many stores don’t make protecting customers from online fraud a priority.
But merchants must invest in robust security measures to eradicate any security vulnerabilities and keep shoppers safe. Until this happens, retail data breaches will continue, and people will be forced to make compensation claims to recoup their losses and uphold their data privacy rights.
IF YOU HAVE BEEN A VICTIM OF A RETAIL DATA BREACH, WE CAN HELP YOU MAKE A NO-WIN, NO-FEE CLAIM FOR COMPENSATION.