Despite an onslaught of recent retail security breaches — including at household names like Target, Home Depot and SuperValu, - news reports such as Business Insider tell us that consumers are gearing up for a robust holiday shopping season. And Deloitte’s 2014 annual holiday survey sums it up nicely: “Consumers report that their holiday spending will be up this year, as they continue to change their shopping habits as well as their expectations of retailers.”
But with security breaches being so prevalent in the retail industry, how are they changing their shopping habits? How are they buying? And why should retailers pay attention?
According to two studies — the National Consumer League's Data Insecurity Report and Security Matters: Americans on EMV Chip Cards — consumers are becoming increasingly wary of using credit cards at big-name retailers following a breach, as the majority of consumers blame the retailers themselves in the wake of a breach.
So it seems that consumers have preferred to use debit over credit, with some young consumers shunning credit cards completely in order to minimize their chances of piling on more debt.
According to a survey released recently by CreditCards.com, of those who had credit cards, one in eight consumers said they are more likely to shop with credit cards this holiday season in the wake of the recent data breaches,. Nearly half of people surveyed, or 48 percent, said they would cut their chances of fraud altogether by paying in cash.
Consumers were divided on how they would treat the retailers that have recent breaches. Forty-five percent of people surveyed said they either definitely would not, or probably would not, shop at retailers that have had a security breach.
However, Deloitte’s report does give retailers a bit of hope. “Consumers indicate they are more likely to shop at a retailer that provides education pertaining to the security of their personal data. Consequently, retailers should educate customers about how they’re using and securing personally identifiable information.”
Along with that education, it’s vital for companies to execute and implement comprehensive security monitoring and system auditing programs.
EiQ’s SecureVue advanced security intelligence platform allows large organizations (and Federal agencies) to save thousands of hours each year with automated security checks. SecureVue also offers a continuous view of compliance without doing a manual inspect of the system. Dashboards on SecureVue display compliance data across the entire enterprise, and new dashboards can be created through the simple point-and-click dashboard editor. With SecureVue, retailers can take steps to protect their customers’ data.