Deloitte Privacy Index Report finds generational divide as data breaches anger customers

A new Deloitte report has found 90 per cent of people want more done to protect their data and younger customers are more likely to take their business elsewhere if there is a breach.

Younger generations are taking charge of their private information after data breaches, and are less likely to give organisations a second chance.

Deloitte’s annual Privacy Index Report warns organisations against thinking that younger generations are “laissez-faire” about privacy, saying they’re more likely to take the initiative to address issues themselves rather than waiting for others to solve them. Deloitte Cyber Risk Advisory Partner Kate Monckton said generational differences in views among consumers should also provide food for thought for organisations and brands.

“(Younger people) are actually taking matters into their own hands by being more open to changing providers in the event of a breach incident and are actively engaging in privacy-conscious behaviours, such as using encrypted communication apps, employing ad-blockers and managing privacy settings on social media platforms,” she said. The report says one-third of consumers have been affected by a data breach in the last 12 months and 69 per cent of those impacted felt vulnerable or angry as a result.

It says 45 per cent of under-35s have proactively left a provider, compared to 26 per cent of those aged 50 and over.

“Many of us are living with an underlying, ever-present fear that we’re losing the data control battle – we’re experiencing ‘data insecurity’. Confidence in businesses and brands to protect personal information has been eroded and trust is on shaky ground,” Ms Monckton said.

“We are more privacy-aware than ever, more cautious than ever about sharing personal information, and more anxious about the type of information organisations are requesting.”

Ms Monckton said there was an obvious challenge for data collectors as people impacted by a breach were far more likely to be angry with the organisation rather than the cyber criminals behind it.

“They want accountability, and they want to be compensated for the potential harm and inconvenience,” she said.

“By embracing cutting-edge tools and methodologies that safeguard sensitive data, organisations can meet younger generations’ higher standards and build a culture of trust, transparency and responsible data stewardship,” the report says.

It says consumers aged 50 and over are far less accepting of organisations experiencing second data breaches compared to younger generations.

The survey also found consumers want more information about what their data is being used for, with 90 per cent saying they want more done to protect their data.

“Governments, of course, need to be really active – by creating and enforcing policies that foster transparency and a secure digital environment that aligns with ­consumer expectations,” Ms Monckton said.

“And for businesses and brands, well, they have everything to gain by listening to consumers and their concerns.”

Originally published as Deloitte Privacy Index Report finds generational divide as data breaches anger customers