Overcoming Retailer Data Trust Issues | Prepaid365

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25 July 2014

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Global research into fraud has found that nearly a third of consumers don’t trust retailers with their data – likely as a result of several widely reported breaches in the past year.

Data is stored by online shopping sites, restaurants and other businesses and the sheer scale of what is kept means some breaches of security are always likely.

This presents an opportunity for fraudsters and scammers to attempt to access data and to then use it to their advantage.

From a consumer point of view the best way to reduce the risk is to limit the amount of data that is submitted although it is likely data trust issues will still exist.

Trusting companies with data

Those in the UK were second only to people in the Netherlands when it comes to trusting companies to secure their data according to data from ACI Worldwide and Aite Group.

Their ‘Global Consumers: Concerned and Willing to Engage in the Battle Against Fraud’ study also showed that 23% of UK consumers don’t trust others with their data.

Overall, only half of the people questioned felt their personal data was secure while nearly three in ten consumers globally do not trust the retailers they are dealing with to store data securely.

Some 58% of those questioned also said they trust financial institutions with their data more than retailers or even government agencies.

In store security was deemed to be adequate in 55% of cases while 62% said they felt online shopping sites were capable of protecting their information.

Tackling fraud

Tackling fraud also requires a certain level of communication between consumers and more than three in four told the study that being contacted about suspicious activity would be appreciated.

The study listed China and India as two countries with the highest rates of prepaid card fraud and linked usage to this, saying it was more likely in places where cards were used more.

However, in other countries, including Canada and the United States, the rates of fraud are lower despite there only being a relative drop in card usage.

Protecting data in the fight against fraud is incredibly important and each individual has to take a certain level of responsibility.

However, ensuring that the level of data that is given to retailers is limited provides a better level of protection in the long run.

Prepaid options

Unlike credit and debit cards, prepaid cards are not directly linked to a bank account making fraudulent activity a lot more difficult.

For those with concerns over their funds, transferring some to a prepaid card can also help to control spending, as only the sums on the card can be spent.

The cards can however be topped up if necessary and can be replaced if they are lost or stolen without funds being affected.

Ukash Travel Money

Levels of fraud involving prepaid cards are also much lower in the UK, than in other parts of the world, thanks to enhanced security measures and careful consumer habits.

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