Businesses failing to protect consumer data

Many businesses are not taking adequate security measures to protect the personal details of their consumers, according to new research.

A recent survey by a major professional body has revealed that around 80% of firms in the consumer sector do not have a formal IT security strategy in place, whilst 86% of enterprises have not taken action to understand where and how confidential data is stored.

The findings follow a string of high-profile cases in which classified information has been mislaid. With many now raising serious questions over the security of their personal details, these latest results will do little to quash growing public concern.

A spokesperson for the company that carried out the research said: ‘Retail companies are holding greater and greater amounts of customer data – from purchasing patterns recorded on customer loyalty cards, to financial information from credit cards.

‘Whilst this helps sales and marketing and can deliver valuable market and customer intelligence, it may also increase vulnerability to data theft.’

The spokesperson went on to add: ‘Worryingly, despite legislation and standards such as the Data Protection Act and the Payment Card Industry Data Security Standard (PCI DSS), only 13% of businesses had performed an inventory of personal and cardholder data - the first step in protecting data.’