Affinion International: Data Security Research

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DATA SECURITY RESEARCH

CONLUMINO & AFFINION

OCTOBER 2014

DATA SECURITY RESEARCH

CONLUMINO AND AFFINION

© 2014 Conlumino [email protected] | 020 7936 6654

Data security report

Data security Prepared for Affinion | October 2014

Affinion International Ltd 50 Charter Court, Slough, Berkshire, SL1 2EJ 01753 753338 [email protected] www.affinioninternational.co.uk

Conlumino 7 Carmelite Street, London EC4Y 0BS 020 7936 6654 [email protected] www.conlumino.com

Shopping, keeping up with friends and sharing information is a way of life. Yet as we increasingly do more of it online, with the freedom and convenience of the internet comes the increased risk of fraudsters using new techniques to get their hands on our personal details. Our research looks at this issue and finds that 9 out of 10 consumers are concerned about their personal information being publically available online. These worries are not without foundation: a fifth of respondents to our survey have been a victim of identity theft. With 87% of victims in our research having had money spent fraudulently in their name, this is a growing issue with important financial consequences . We hope you find the research interesting. If you have any comments or queries please do feel free to get in touch. About Affinion International Affinion International, a division of Affinion Group, provides a wide range of protection and lifestyle products that offer value to consumers whilst building additional revenue streams and increased customer-to-brand loyalty and engagement for its partners. The division is made of more than 1,200 employees and offers services in 17 countries throughout Europe, Africa and South America. Over the past 15 years, Affinion International has built an impressive client base that includes 13 of the top 20 EU banks and many of Europe’s premier brands in travel and retail. For more information, visit www.affinioninternational.co.uk

Contact details




Key findings in brief

•  The growth of online has not assuaged consumer security concerns. Indeed, the greater use of online payments and information sharing appears have to heightened worries.

•  Mobile payments are creating additional concerns; paying with details stored on a mobile device is the payment method consumers are most worried about.

•  A huge 9 out of 10 consumers are now concerned about their personal information being publically available online. Even more worry that it could be used by fraudsters.

•  Concerns are not without foundation: a fifth of respondents have been a victim of

identify theft, with just shy of 4% having been a victim multiple times.

•  In 87% of cases, victims had money spent fraudulently in their name; 40% had over £500 spent in their name.

•  While most people manage to recoup any losses from fraudulent spending, almost 9% said that they lost money as a result with the average loss a high £2,100.




Summary

Payment concerns still dominate Despite the fact that ordering products online is now fairly commonplace and widespread, there are still concerns about making payments online. As a result, consumers are less likely to use debit cards for online payments, preferring instead to opt for credit cards and online payment services such as PayPal.

High concern over mobile payments The era of mobile payments has done little to ease consumer concerns, indeed, if anything it has heightened them. Of all payment methods, paying with card or account information stored on a mobile was the one that made consumers most nervous.

90% worry about security of personal information online Concerns over payments are part of a wider worry around personal information being available online. 90% of consumers are concerned about their information being publicly available with the highest concern being among the more tech-savvy 18-24 year olds. Separately, around 92% of consumers have concerns about fraudsters getting access to their financial information, with almost all over 65s having at least some worries about this.

Apathy about protection Despite these concerns around 13% of consumers admit that they do nothing whatsoever to protect their information whilst online, this rises to 26% among 18-24s. Some 64% say that they use very strong passwords to protect information and data, but 19% do this and nothing else. This means that, in total, almost a third of consumers do nothing or only use strong passwords.

Younger groups more lax Despite high numbers having concerns about online information, younger consumers are more lax when it comes to protecting information. Over a quarter do nothing to protect their information online.




Summary

Identify theft A fifth of respondents have been a victim of identify theft, with just shy of 4% having been a victim multiple times. In 87% of cases, victims had money spent fraudulently in their name; 40% had over £500 spent in their name.

Alerting tends to be passive Although 41% of consumers were alerted to the fraud by their banks, many consumers found out in a more passive way. Just over 46% found out by spotting something irregular on a statement or credit report.

Over a third would have valued a victim of fraud service to help resolve their incidents Although most victims of fraud found it relatively easy to resolve the situation, just under 15% found it hard to solve the issue. Even with a majority of consumers finding it easy to remedy the problems, a fifth of victims said that it took three months or more to completely resolve everything. 16% used a service to help them resolve the incident, but a further 38% said they would have valued such a service.

Personal losses While most people manage to recoup any losses from fraudulent spending, almost 9% said that they lost money as a result. The average loss was a very high £2,100. 18% of those seeing losses lost between £5,000 and £9,999.




Payment types used

Which of the following have you used to pay for goods and services? All figures are percentages over the past year

Debit cards are the most popular online payment method

Method Online Phone In person

Debit card 76.3 66.1 86.1

PayPal 75.4 n/a n/a

Credit card 59.9 46.2 57.0

An online account, e.g. iTunes 49.6 n/a n/a

Bank transfer 45.0 7.2 6.4

Store card 6.4 3.7 12.8

Cash n/a n/a 88.0

Prepayment style card 3.9 2.6 5.9

Electronic payment service such as PingIt 3.3 0.9 n/a

Cheque n/a n/a 43.4




Concerns with payment methods

How concerned are you about the security of each method? All figures are scores out of 5 where 5=very concerned and 1=no concern at all; average scores for each measure are shown

Contactless cards, paying over the phone and paying with card information held on mobiles are all areas of high concern for consumers

1.8

2.3 2.5 2.6 2.7

3.0 3.2

3.4 3.6 3.7

Cash Bank transfer PayPal A card with a PIN number at a shop

An online account e.g.

iTunes, Amazon

A credit card over the internet

A debit card over the internet

A contactless card

A card by giving the details over the telephone

A card or account where

information is stored on your mobile phone

No concern

Little concern

Some concern

Higher concern




Concern about details online

How concerned are you about your personal details being available publicly online? All figures are percentages

Nine out of ten people are concerned about their personal details being available publicly online; concern is highest among the 18-24s

31.9 32.8 - 32.4 36.7 39.8 33.2 32.0 25.5 29.2 - 32.4 38.5 36.1 30.2 25.4

Segment Concerned Extremely concerned All concerned

Male 64.2 25.0 89.2

Female 63.6 23.7 87.3

18-24 64.7 26.0 90.7

25-34 56.6 20.0 76.6

35-44 68.2 20.7 88.9

45-54 70.2 18.0 88.2

55-64 60.4 26.7 87.1

65+ 60.1 31.7 91.8

AB 62.9 28.4 91.3

C1 64.7 24.8 89.5

C2 68.7 20.9 89.6

DE 63.2 27.4 90.6

25.0

64.2

6.8 4.0

Extremely concerned

Concerned Not concerned at all

Not sure




Concern about fraudsters

How concerned are you about fraudsters illegally obtaining your personal and financial information to obtain goods and services? All figures are percentages

92% are concerned about fraudsters getting financial information; almost all over 65s are concerned

Segment Concerned Extremely concerned All concerned

Male 66.4 25.3 91.7

Female 66.6 27.0 93.6

18-24 60.0 21.7 81.7

25-34 67.4 23.1 90.5

35-44 72.1 18.7 90.8

45-54 63.4 27.9 91.3

55-64 63.9 31.7 95.6

65+ 67.7 30.1 97.8

AB 64.5 26.8 91.3

C1 69.4 23.1 92.5

C2 67.9 26.4 94.3

DE 66.3 27.5 93.8

26.2

66.5

4.3 2.9

Extremely concerned

Concerned Not concerned at all

Not sure




Risks

Where do you think you are at the highest risk of being a victim of crime by having your personal or financial details stolen? Respondents were asked to rank the five things in order of the risk they posed with 1 being the highest risk and 5 being the lowest risk.

Theft of bank cards is seen as presenting the highest risk of having personal or financial details stolen

Method

Average rank ‘score’

1= highest risk

% ranking as number 1

(highest risk)

Theft of your bank cards 2.5 40.1%

Using your home computer/laptop to shop and share information online 2.7 17.9%

Using your mobile to surf and shop 2.8 21.8%

Using your credit card in a shop 3.3 9.7%

Using an online account such as Amazon or iTunes 3.7 10.2%




Withdrawing cash

How many different cards do you use to withdraw cash from ATMs? All figures are percentages

On average, people have 1.5 cards that they use to withdraw cash; most have one, a quarter have two, and 11% have three or more

60.7% 25.1% 8.5% 1.4% 0.4%

+

0.5%

Just one Two Three Four Five More

Residual is made up of those who do not have cards or who do not withdraw cash




Frequency of shopping online

How frequently do you shop online, i.e. actually buy things? All figures are percentages

A quarter of consumers buy things online at least once a week; this rises to a third for 25-34 year olds

Segment Daily Weekly Fortnightly Monthly Yearly

Male 2.4 23.1 18.9 29.6 20.9

Female 1.2 23.7 17.3 30.9 19.4

18-24 0.0 30.0 25.0 25.0 13.3

25-34 4.2 29.6 21.7 28.0 10.7

35-44 0.9 24.4 20.9 34.2 16.8

45-54 1.2 23.8 17.2 34.0 19.5

55-64 1.4 19.4 14.4 29.8 25.8

65+ 0.0 17.1 14.0 28.1 31.2

AB 2.4 27.4 22.0 28.4 14.9

C1 1.0 24.9 18.7 33.1 17.4

C2 0.9 21.7 18.9 33.0 21.7

DE 1.4 19.7 14.9 29.7 25.0

1.7

23.4

18.0

30.3

20.1

4.8

1.7

Daily Weekly Fortnightly Monthly Several times a year

Rarely Never




Protection measures

When shopping and sharing information online, which of the following security measures do you use to protect your personal information?

42% of consumers do not use online protection software

31.9 32.8 - 32.4 36.7 39.8 33.2 32.0 25.5 29.2 - 32.4 38.5 36.1 30.2 25.4

All figures are percentages

64.0

43.7

33.6 32.0

13.5 13.0 10.1 9.2

Strong passwords for your accounts

Software or PIN sentry provided by your bank

to secure your payments

Changing your passwords regularly

Anti-phishing online protection software

Anti-keylogging online protection software

Identity theft protection product

Online data monitoring A regular review of your credit report




Protection measures by age

Percentage of consumers who do not take any steps to protect their online information

Younger age groups are far more lax about protecting online information

31.9 32.8 - 32.4 36.7 39.8 33.2 32.0 25.5 29.2 - 32.4 38.5 36.1 30.2 25.4


13.0 13.6

26.3

19.9

16.3

9.0 10.1

7.1

15.3 13.3

8.7

12.4

Male Female 18-24 25-34 35-44 45-54 55-64 65+ AB C1 C2 DE




Identity theft

Have you ever been a victim of identity theft?

A fifth have been a victim of identity theft, almost 4% more than once

31.9 32.8 - 32.4 36.7 39.8 33.2 32.0 25.5 29.2 - 32.4 38.5 36.1 30.2 25.4


Segment Yes, once Yes, more No

Male 15.0 4.2 80.8

Female 16.0 3.5 80.5

18-24 6.7 5.0 88.3

25-34 19.1 5.2 75.7

35-44 13.6 4.1 82.3

45-54 15.1 3.2 81.7

55-64 16.1 2.1 81.8

65+ 13.8 3.9 82.3

AB 16.3 6.2 77.4

C1 16.6 4.0 79.4

C2 13.2 3.8 83.0

DE 14.2 2.0 83.8

15.6

3.8

80.6

Yes, just once Yes, more than once No




Identity theft: costs

When you were last a victim of identity theft, was any money spent fraudulently in your name?

The vast majority of victims had money spent fraudulently in their name

31.9 32.8 - 32.4 36.7 39.8 33.2 32.0 25.5 29.2 - 32.4 38.5 36.1 30.2 25.4


13.1

47.1

17.3 13.1

5.8 1.6 1.6 0.5

No Yes, under £499 Yes, £500-£999 Yes, £1,000-£4,999

Yes, £5,000-£9,999

Yes, £10,000 to £49,999

Yes, £50,000 to £99,999

Yes, £100,000 or more




Identity theft: alerts

How were you alerted to the identity theft?

Over a third were alerted through irregular transactions on statements

31.9 32.8 - 32.4 36.7 39.8 33.2 32.0 25.5 29.2 - 32.4 38.5 36.1 30.2 25.4


40.7

33.5

8.5 6.4 6.2 6.2 5.9

I was informed by my bank

I found something on my bank statement

I was informed by the company through which

the goods had been purchased

Through a store statement I found something on my credit report

I was informed by a mail order company, phone

company

I was informed by the police




Identity theft: resolving

Resolving the identity theft

Almost a fifth said it took 3 months or more to resolve the situation

31.9 32.8 - 32.4 36.7 39.8 33.2 32.0 25.5 29.2 - 32.4 38.5 36.1 30.2 25.4


41.1 42.7

10.4

4.2 1.6

Very easy Quite easy Quite difficult Very difficult Not sure

38.3 42.5

12.4

3.1 1.6 2.1

Straight away

Under a month

About 3 months

About 6 months

About a year

More than a year

How easy was it for you to resolve the situation?

How long did it take you to resolve the situation?




Identity theft: losses

Did you manage to recover all of the losses?

Almost 1 in 10 lost money from the fraud, with an average of £2,100 lost

31.9 32.8 - 32.4 36.7 39.8 33.2 32.0 25.5 29.2 - 32.4 38.5 36.1 30.2 25.4


Did you manage to recover all of the losses?

How much did you end up losing?

No 8.8%

Yes 91.2% Under £499,

43.6%

£500 to £999, 25.0%

£1,000 to £4,999, 12.5%

£5,000 to £9,999, 18.4%

£10,000+, 0.5%




Identity theft: using services

Did you use a victim of fraud service to help you resolve the incident?

16% used a service to help them resolve the incident, but a further 38% said they would have valued such a service

31.9 32.8 - 32.4 36.7 39.8 33.2 32.0 25.5 29.2 - 32.4 38.5 36.1 30.2 25.4


15.5

37.8

46.6

Yes No, but I would have valued one No, I did not and would not have valued one




Opinions on data security

How strongly do you agree or disagree with the statements

64% agree that they are now more vigilant regarding personal and financial information.

31.9 32.8 - 32.4 36.7 39.8 33.2 32.0 25.5 29.2 - 32.4 38.5 36.1 30.2 25.4


I worry how much of my personal and financial information is available online

20.1 43.5 26.8 8.1 1.5

I do not feel totally in control of my own personal and financial information 10.1 32.1 34.3 18.4 5.1

I think banks do a good job of protecting me against identity fraud 9.9 40.9 39.5 7.1 2.6

I do not like the idea of using my cards abroad 18.1 25.1 34.1 17.6 5.1

I think it is quite difficult for other people to steal my personal & financial information 3.7 17.9 45.8 24.2 8.4

Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree

Net agree: 63.6%

Net agree: 24.2%

Net agree: 50.8%

Net agree: 43.2%

Net agree: 21.6%

I am much more vigilant than I used to be regarding my personal & financial information 21.8 42.2 31.5 3.5 1

Net agree: 64.0%




Methodologies and sources

•  Consumer research in this report is based on a survey conducted with a UK nationally representative poll of consumers. 2,002 consumers were interviewed during August 2014 and questioned about data security.

•  Unless otherwise stated, all sources of information are derived from

Conlumino’s own research and should be referenced to Conlumino/Affinion.

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Conlumino

020 7936 6654 [email protected]

7 Carmelite Street, London EC4Y 0BS

Affinion International Ltd

01753 753338 [email protected]

50 Charter Court, Slough, Berkshire, SL1 2EJ

Affinion International: Data Security Research

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