Interactions has released its latest Retail Perceptions report, “Security Hacks and the Lasting Impact on Retailers.”
The study found that 64% of shoppers have accepted security breaches to be part of the shopping process and 53% say that security breaches are a risk they’re willing to take in exchange for convenience. Ultimately 75% of shoppers believe that keeping shopper information safe is the retailer’s responsibility.
“Interactions first studied the effects of security breaches in 2014. What we have found in the years since then is three-fold: shoppers have overwhelmingly become accustomed to security breaches, shoppers are more cautious and are changing their behavior, and finally, shoppers hold retailers accountable,” explains Lance Eliot, Global Vice President of Information Technology with Interactions.
According to this year’s report, 40% of shoppers avoid retailers that have been hit by security breaches. In addition, 34% avoid shopping online and 50% avoid shopping on their mobile phones due to the fear of security breaches. For those who shop at a retailer that has experienced a security breach, 39% spend less per trip than before, 67% use cash instead of credit or debit cards, and 60% shop online with one specific card designated to online purchases to monitor its activity.
The study also found that 43% of shoppers do not trust companies to keep their personal information safe, and of these, 30% do not think companies invest in enough security measures.
Nearly half of all shoppers believe that a retailer could avoid a security breach by investing in better technology. When asked about the other ways to avoid security breaches, 43% of shoppers indicated the use of credit cards with chip technology, 32% said stricter laws enforced against hackers, and 14% said the use of mobile wallets.
A significant 62% of shoppers use credit and/or debit cards with chip technology to make purchases. Of these, 71% said that using chip technology credit cards makes them feel more secure when shopping, and 60% preferred to use a chip technology card over any other method of payment.
“According to our study, chip card technology may finally ease shoppers’ concerns in regards to security breaches,” noted Eliot. “Shoppers not only prefer to making purchases with chip cards, they also feel safer in doing so.”
Download the report HERE
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