Consumers Blame Merchants Most for Card-Data Security Lapses

As card data breaches continue to garner headlines, retailers may suffer the most in the eyes of U.S. consumers. Some 63% of consumers say merchants do the least to protect credit and debit card information, compared with 16% who say this about transaction processors and 5% who say Visa and MasterCard offer the least security, according to a survey released Thursday. Javelin Strategy & Research, Pleasanton, Calif., canvassed 1,200 credit and debit card holders in February, selecting them from a random sample of adults in the U.S. Ranked most secure are banks, at 46%. Moreover, 78% said they would most likely stop shopping at a store after learning it had sustained a breach, while one-fifth said they would continue. “Consumers hold businesses accountable for securing credit and debit information in their care and will take their business elsewhere if they perceive that responsibility is not being upheld,” said James Van Dyke, president of Javelin, in a statement. But there's an apparent upside for merchants that can solve the security puzzle. Eighty-five percent said they would likely shop more than they do now at stores that show they are pouring significant resources into data protection and establish a record of security. Overall, though most consumers see retailers as the weak link in protecting card data, most also hold merchants and card companies equally responsible for keeping the information secure, according to the survey. The overwhelming majority (95%) also want their banks to tell them the names of retailers where data breaches have occurred. These results come at the same time as a survey by the Washington, D.C.-based National Federation of Independent Business shows small businesses may be storing multiple types of payment-related data without realizing it. Although the survey says 84% of respondents, businesses with 250 or fewer employees, lock up data with encryption or passwords, it also shows 37% store card numbers; 24% keep Social Security Numbers; and 28% store bank account numbers or copies of customer checks. “In some situations, business owners may not be fully aware that their systems are storing this highly sensitive information” sought by data thieves, says a news release announcing the survey results. Further, 57% of small businesses do not think formal planning is needed for data security, and 61% have never looked for information about how to handle and store customer information safely. The NFIB and Visa USA announced Thursday they will jointly launch later this year an education program aimed at helping small businesses with data security.