Consumers Reaction to Data Breach Notification

by Doug Pollack

The Ponemon Institute recently published a report titled “Consumers’ Report Card on Data Breach Notification” based on a survey sponsored by ID Experts.

There has been a lot of research on the costs and impact of data breaches on the organizations that have exposed the data. There has been little to date, however, looking at this issue from the perspective of the consumer. Dr. Ponemon said that:

“We decided to conduct this study to find out if consumers who received notification about a data breach involving their personal information were satisfied with the organizations’ response and transparency. In other words, if consumer had the ability to issue a report card on the current status of data breach notification would it be A for excellent or F for failing?”

The results of this study are quite informative. They can provide guidance to an organization in preparing for a data breach or in creating their data breach response plan. Some of the notable conclusions that reinforce the importance of the content of the notification letter and the offer that is provided to protect the breach victims:

“The study found that 63% of survey respondents said notification letters they received offered no direction on the steps the consumer should take to protect their personal information. As a result, 31% said they terminated their relationship with the organization and 57% said they lost trust and confidence in the organization.”

Download a copy of the Ponemon study on Data Breach notification.