2 separate surveys detail depth of consumers’ concern about personal data and privacy
Separate consumer surveys by KPMG and by Ponemon Institute sponsored by ID Experts uncovered the growing concern consumers have about their personal data and privacy as more technology is leveraged.
According to the survey from KPMG, 56% of Americans reported wanting more control over their personal data, and insisted that both corporations and government must play an active role in protecting consumer data.
Meanwhile, research from the Ponemon Institute also pointed to a privacy gap between the consumer data protection individuals want and what industry and regulators provide.
KPMG discovered 97% of American consumers indicated that data privacy is important to them, with 87% going so far as to characterize it as a human right. However, KPMG also found consumers are deeply suspicious of what companies are doing with their data based on these two findings:
— 68% don’t trust companies to ethically sell personal data
— 54% don’t trust companies to use personal data in an ethical way.
“With consumers indicating that they see data privacy as a human right, and new legislation expected in the years ahead, it is critical that companies begin to mature privacy programs and policies,” said Orson Lucas, principal of KPMG Cyber Security Services.
“Consumer demands for the ethical use of data and increased control over their own data must be a core consideration in developing data privacy policies and practices,” Lucas continued in a news release about findings contained in a report, New Imperative for Corporate Data Responsibility, which is based on the results from a survey of 1,000 respondents in the U.S.
KPMG mentioned the sample was balanced to reflect national representation of age, race, gender and region. The online survey was fielded between May 19 and May 21.
Even though respondents indicated that data privacy is important to them, KPMG determined that most Americans still engage in online behaviors they consider risky. The survey found that:
— About 75% of Americans say they consider it risky to use the same password for multiple accounts, use public Wi-Fi or save a card to a website or online store. Yet, more than 40% engage in those behaviors.
— While 65% of Americans reported avoiding opening email attachments from unknown senders, only 31% install mobile device security software and 20% use their own virtual private network (VPN) when possible.
“Part of the challenge for corporations will be getting employees and customers to do their part in protecting their own data,” said Steve Stein, another principal at KPMG Cyber Security Services. “Developing defensible notices with understandable language and data protection controls that guide employees and consumers have to be embedded in the data security agenda.”
While most survey respondents indicated that consumers themselves have a responsibility to protect consumer data, even more want the government and companies to play a role. KPMG found that:
— Nine in 10 Americans insist companies (91%) and the government (90%) have a responsibility to protect consumer data.
— Almost all (91%) agree the following data privacy rights of the California Consumer Privacy Act should be extended to all U.S. citizens, including the right to delete personal data and the right to know how their data is being used.
— More than nine in 10 Americans say companies should put data privacy guidelines and policies in place, be held responsible for corporate data breaches, take corporate data responsibility seriously and take the lead in establishing corporate data responsibility.
To be able to provide consumers with increased control over their data, KPMG suggested that businesses should consider leveraging data discovery and protection tools and exploring novel uses of blockchain and artificial intelligence. The firm explained these technologies can help organizations better track the source of their data, assure its accuracy, make it easily discoverable, protect it and build greater external visibility into the data being collected.
In fact, according to a survey of 600 global technology executives conducted in late March/early April, KPMG found that improving cybersecurity and data privacy is one of the top four objectives for which their organizations are investing in emerging technologies such as process automation, smart analytics, cloud computing, artificial intelligence and blockchain.
Results of Ponemon research
The Ponemon Institute discovered similar findings when it conducted its own consumer survey.
The research center dedicated to privacy, data protection and information security policy orchestrated a projected sponsored by ID Experts that revealed what analysts called a “startling” lack of empowerment consumers feel when it comes to their data privacy.
Research from the Ponemon Institute pointed to a privacy gap between the consumer data protection individuals want and what industry and regulators provide. While the majority of consumers want their data protected, the center found they’re still waiting on — or expecting — the federal government or industries to provide this protection.
For instance, the Ponemon Institute said a majority of consumers (60%) believe government regulation should help address the privacy risks facing consumers today, of which 34% say government regulation is needed to protect personal privacy and 26% believe a hybrid option (regulation and self-regulation) should be pursued.
“This research revealed much of the tension surrounding digital privacy today. Based on my polling experience, these findings make a compelling case for the important role identity protection products and services play in protecting consumers’ privacy,” Ponemon Institute chairman and founder Larry Ponemon said in a news release.
“The study shows that many consumers are alarmed by the uptick in privacy scandals and want to protect their information, but don’t know how to and feel like they lack the right tools to do so,” Ponemon continued.
Other key findings from the Ponemon Institute survey include:
— Consumer concern is increasing: Two-thirds of consumers (68%) are more concerned about the privacy and security of their personal information than they were three years ago. Three-fourths of consumers (75%) in the over 55 age group have become more concerned about their privacy over the past three years.
— Search engines least trusted: Almost all consumers (92%) believe search engines are sharing and selling their private data, 78% believe social media platforms are and 63% of consumers think shopping sites are as well. Similarly, 86% of respondents say they are very concerned when using Facebook and Google and 66% of respondents say they are very concerned when shopping online or using online services.
— Seniors against advertising tracking: A majority of older consumers (78%) say advertisers should not be able to serve ads based on their conversations and messaging.
— Consumers have little hope in websites’ ad blocking: Only 33% of consumers expect websites to have an ad blocker that stops tracking and only 17% of consumers say they expect websites to limit the collection and sharing of personal information.
— Split responsibility: More consumers (54%) say online service providers should be accountable for protecting the privacy of consumers, while 45% say they themselves should assume responsibility.
— How consumers protect themselves: A majority of consumers (65%) are using some type of privacy protection provided by their devices. Of these, 25% are setting a more restrictive data sharing setting, 21% are using both additional authentication controls and a more restrictive data sharing setting and 19% are using additional authentication controls.
— Half of consumers are aware of the availability of protections: Of the protections available to consumers to protect their personal information, 52% say opting out of data collection and 48% say data sharing and encryption of personal information are available, respectively.
“What we’re seeing is a privacy gap between Americans’ desire for a solution due to their growing concern for their digital privacy and the services that the actual protection government and industry leaders offer,” ID Experts president and chief executive officer Tom Kelly.
“Consumers must recognize that there are simple tools and practices they can implement to guard their data privacy, and government leaders and online platforms won’t do it for them,” Kelly added.
Interestingly, the study also found that 64% of consumers say they think it is “creepy” when they receive online ads that are relevant to them, but not based on their online search behavior or publicly available information. This confirms that many consumers experience this phenomenon and are alarmed by it.
In addition, ID Experts’ own research findings reveal that 73% of consumers say advertisers should allow them to “opt-out” of receiving ads on any specific topic at any time.
ID Experts asserted this sentiment revealed a lack of empowerment that consumers feel in their ability to protect their privacy.
While 74% of consumers say they have no control over the personal information that is collected on them, ID Experts’ research indicated they are not taking action to limit the data they provide when using online services. In fact, 54% of consumers say they do not consciously limit what personal data they are providing, according to ID Experts, which went on to say, “This lack of empowerment can have devastating effects on consumers’ privacy if it goes unchecked.”
The research conducted by Ponemon Institute included interviews of more than 650 adults across the country who represent a diverse sample of gender, age, race, political and religious beliefs, educational backgrounds and income levels.
Its complete report, Privacy and Security in a Digital World: A Study of Consumers in the United States, is available for download on this website.