Consumers Delete Apps, Social Media as Data Security Concerns Grow: Study

So many consumers are worried about their data privacy now that many are deleting mobile apps, removing social media accounts, changing their privacy settings, and rejecting cookies and terms of agreement, according to a new survey by data analytics firm SAS.

The survey of 525 U.S. adult consumers found that 73% of respondents were more concerned about their data privacy now than they were a few years ago. That’s spurred 77% of consumers to change their privacy settings, 67% to change or decline cookies and 65% to decline terms of agreement.

It has also prompted many consumers to take actions that could directly affect credit unions’ digital strategies: 56% of respondents in the survey said they have deleted an app from their mobile device, for example, and 36% have removed a social media account due to data privacy concerns. In addition, 38% of the respondents said they now use social media less often.

“The survey results clearly show that consumers value their data privacy and are greatly concerned about potential misuse. Companies need to reexamine how they handle data and analytics in all aspects of the business,” SAS GPDR Solutions Global Lead Todd Wright said. “It’s clear that in this age of increased data privacy concerns, even without a more stringent data privacy law in the U.S., organizations that treat their customers’ data with care will be rewarded, and those that don’t risk the loss of reputation and customers.”

Banking and health care were the most trusted businesses in the SAS survey, with almost half of the respondents saying they were confident or extremely confident that organizations in those industries kept their data secure. Social media was the least trusted industry for data security, with only 14% of respondents expressing confidence in those companies. Fewer than 30% of consumers expressed confidence in travel companies, retailers, internet and cable providers, energy companies or government agencies as well.

“When it comes to data privacy, participants are most concerned about identity theft, followed by financial fraud, personal data being sold or shared without consent, misuse or inappropriate use of personal data, and government surveillance,” SAS reported.

The study also found that 83% of people would like the right to tell an organization not to share or sell their personal information, and 80% wanted to the right to know where and to whom their data is sold. In addition, 64% said they wanted to the right to have their data deleted or erased.

Those sentiments mirror much of the concern credit union advocates have expressed in their efforts to persuade Congress to pass new data privacy laws.

“Currently, credit unions are subject to strong data security standards established by Congress and federal regulators. Unfortunately, merchants and retailers are not subject to the same federal requirements and many of them follow their own data security standards. However, high-profile breaches at numerous retailers proves that much more needs to be done to protect consumers’ financial data,” NAFCU has noted in its position on the topic.