Ensuring data breach protection is crucial for maintaining customer loyalty
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In the digital age, consumer data security has taken centre stage, with growing concerns over data breaches and the misuse of personal information. A survey conducted by Gemalto reveals some startling statistics about consumer trust and data security practices.
According to the survey, seven in ten consumers feel businesses do not take the security of customer data very seriously. This sentiment is reflected in the fact that 80% of data breaches are caused by weak or previously stolen credentials. This worrying trend indicates a need for businesses to prioritise data security measures.
The survey also found that retailers, banks, and social media sites have a lot of work to do to improve their security measures. A staggering 70% of consumers would stop doing business with a company after a data breach, underscoring the importance of robust security measures.
Jason Hart, CTO of Identity and Data Protection at Gemalto, stated that consumers are expecting businesses to keep their data secure without any effort on their part. However, consumers themselves are also contributing to the problem. Over half of consumers still use the same password for multiple online accounts, a practice that significantly increases the risk of a data breach. Two fifths of consumers do not use two-factor authentication to secure social media accounts, another potential vulnerability.
The government and industry certified bodies are trusted with personal data by only 10% and 12% of consumers respectively. Device manufacturers fare slightly better, with 11% of consumers trusting them with their personal data. Banks, however, are the most trusted, with 33% of consumers trusting them the most with their personal data.
With upcoming data regulations like GDPR, businesses are expected to enforce security protocols on their customers to keep data secure. It is no longer enough for businesses to offer security solutions as an option; these protocols must be mandatory from the start to avoid financial consequences and potential legal action from consumers.
Current trends in consumer data security emphasize increasing consumer awareness and empowerment, rising business responsibility for transparent and ethical data handling, and the growing complexity of regulatory frameworks like GDPR and emerging laws in the U.S. and globally.
From the consumer behavior perspective, there is a notable rise in Data Subject Requests (DSRs) as consumers become more informed and demand control over their personal data—including rights to access, correct, or delete information. This shift drives businesses to implement streamlined, often automated processes to handle these requests efficiently, which is both a compliance necessity and a trust builder with customers.
Business responsibility now extends beyond traditional data protection to adopting adaptive, dynamic privacy frameworks that account for fragmented regulations across regions. Companies are urged to embed “privacy-by-design” principles, especially as AI and machine learning heavily leverage personal data. This includes integrating consent protocols and safeguards against bias and misuse throughout data lifecycles.
The impact of new and upcoming data regulations is profound. 2025 marks the enforcement of multiple state-level U.S. data privacy laws beyond GDPR’s existing global model, raising complexity and compliance burdens. These laws demand greater transparency, longer timelines for consumer responses, and increased accountability, compelling businesses to invest in adaptive privacy strategies and technologies. Failure to comply risks hefty fines and loss of consumer trust.
Simultaneously, cybersecurity threats continue to evolve—businesses face challenges securing IoT devices and distributed networks exacerbated by remote work. Sophisticated attacks using AI tools highlight the need for enhanced authentication methods such as biometric encryption, zero-trust architectures, and real-time analytics protection schemes. These are critical to safeguard consumer data against large-scale “mega breaches” and advanced persistent threats.
In summary, consumer data security in 2025 is characterized by empowered consumers leveraging privacy rights, businesses adopting proactive, technology-driven privacy and security measures, and navigating an increasingly fragmented but more stringent regulatory landscape that includes GDPR, U.S. state laws, and AI-specific regulations.
- In the digital age, it is crucial for businesses to prioritize finance and technology, not just for data security measures, but also to invest in adaptive privacy strategies and technologies to comply with emerging data regulations such as GDPR and US state laws.
- The survey revealed that consumers have little trust in certified bodies and device manufacturers regarding the security of their personal data, highlighting the need for businesses to prioritize finance and technology to protect consumer data and build trust.
