Data security concerns impact consumer confidence in online transactions

Data and online security practices of banks are a key concern for consumers when deciding who to entrust with their personal data and transactions.

A recent survey of over 11,000 consumers commissioned by Kaspersky Lab found that over half  of the respondents would avoid using a provider that had recently experienced a data security incident.

Despite consumers seemingly being cautious about the safety of their information and money when making online transactions, many put the onus on the provider to step up their own defences through more robust and reliable measures. 59% of consumers admitted that they would select a financial services provider or transact with an online store solely on the basis of the additional security measures it offered, to protect their hard earned cash and confidential data.

The research also found that nearly two thirds (65%) of consumers worry about the data security practices of companies they give their personal and financial information to – a rise of 9% on the previous year. This makes it all the more important for banks and retailers to demonstrate that they are doing all they can to allay these fears and make the safety of online transactions and data their top priority.

“Consumers entrust all sorts of valuable information to businesses – such as contact details, passwords and financial data – all of which are golden nuggets to a cyber-criminal. Companies holding such data have the responsibility of keeping it safe and making sure it doesn’t fall into the wrong hands. With our research revealing that 47%  of consumers would use online payments more often if they had reliable protection for financial transactions, it is clear that providers need to do more to safeguard transnational data for the long-term profitability and reputation of their business,” comments Kirill Slavin, General Manager, UK and Ireland at Kaspersky Lab.

With consumer demands increasing, specialist solutions can help banks boost customer retention by safeguarding not only online and mobile transactions but the integrity of their brand. Kaspersky Fraud Prevention enables banks to provide rigorous and robust security measures without impacting upon the customer experience or ease of online transactions. Kaspersky Fraud Prevention for Endpoints keeps customers and their machines fully protected from financial fraud, so they can bank easily and conveniently online, without exposing themselves, or their provider, to risk.

Find out more about Kaspersky Fraud Prevention below