A global survey of consumer attitudes released today by Visa International reveals that the theft or loss of personal and financial information is the No. 1 concern of consumers worldwide (64 percent).
“This survey reinforces what Visa has long believed – that data security is an issue of paramount concern to consumers around the world,” said Christopher Rodrigues, CEO of Visa International. “Trust is at the heart of our dynamic global economy, and that trust can be eroded if consumers’ growing data security concerns are not addressed.”
Data security is not a new issue and facilitating the protection of cardholder data has long been a priority for Visa. Over the last several years, Visa has developed a multi-layered product and service strategy to safeguard data and help prevent fraud. While levels of consumer concern are high, fraud as a percentage of Visa's volume has actually declined in the last decade with Visa’s global fraud rate at an all-time low, accounting for less than one-tenth of 1 percent of Visa's global sales volume.
Mr. Said Shuqom, Visa International General Manager for the Levant, stated that Visa is dedicated to tackling the concerns of consumers in the region. "In Jordan we place emphasis on bringing innovative services that provide maximum data security to the market and we work closely with our member banks to ensure Visa cardholders’ protection and convenience. Our recent introduction of chip technology is one of many pioneering initiatives Visa has undertaken to build consumer confidence. Furthermore, Visa International is constantly enhancing its IT security systems, which comes inline with HM King Abdullah II's vision of advancement for the IT sector in Jordan. Chip technology will ensure high levels of security for consumers in their everyday spending," he said.
According to the research, advances in technology to authenticate cardholders would make 57 percent of consumers feel “much more confident” in the protection of their personal data. That is why at the World Economic Forum, Rodrigues reinforced Visa’s commitment to security by demonstrating a breakthrough technology which generates and displays one-time use dynamic passcodes on a Visa card. This technology is currently under development and could soon give one more layer of security and peace of mind to consumers shopping online.
The research showed that globally data security issues surpassed environmental degradation (No. 2 – 62 percent) and terrorism (No. 3 – 58 percent), as well as other major issues such as job loss (57 percent), disease or epidemics (55 percent) and natural disasters (48 percent). “We asked consumers about issues which are personally salient to them, rather than about issues facing the country as a whole, which is more typical in this type of research,” said Mike Dabadie, SVP of Harris Interactive, which conducted the survey in 12 emerging and developed countries.
In the research, consumers report changes in behavior, particularly when shopping online:
• 63 percent of consumers say they are more careful when disposing of financial statements
• 50 percent look at the privacy policies of companies with which they do business
• 62 percent of online shoppers are more discriminate about the sites at which they make purchases
• 24 percent report shopping less online and 26 percent less via the telephone
Actual e-commerce figures for Visa show global sales volume growth of 27 percent in 2005 over 2004.
“The concern over data security is broader than electronic payments,” Rodrigues said. “But at Visa, we know that maintaining cardholder confidence is crucial to the success of the Visa system, and that’s why we are committed to doing our part to contribute to a global solution. Through constant innovation, investment and education, Visa is committed to working with member banks, technology partners, merchants and consumers to support and enhance the security of cardholder data. But we are only one part of the solution.”
Consumers also viewed broader education as part of the solution, 40 percent of consumers would feel more secure if they had more information about how to protect themselves against loss of their personal data. 36 percent indicated they would feel more much secure knowing that an independent organization was enforcing standards. To that end, Rodrigues said, “Visa supports the development of a new cross-industry forum that brings together all stakeholders in the payment chain to create an objective, stand-alone entity to manage data security issues for the industry.”
Other potential measures cited by consumers included better enforcement of laws and zero liability for fraudulent use of payment cards, a protection already in place in Canada, the United States and Asia Pacific. Interestingly, more (47 percent) believe the protection of personal and financial data to be an international issue than a national one (36 percent), suggesting that the solutions, too, must be global in scope.
“The global payment system is only as secure as its weakest link,” Rodrigues said. “To prevent future data security compromises, everyone, everywhere, that engages in commerce must take responsibility for their role in the payments chain, including, banks, processors, retailers, and consumers.”
About Visa International: Visa International is a service association owned by, and comprised of, 21,000 member banks. These banks have issued over a billion Visa cards worldwide on which US$3 trillion per year is spent across over 150 countries.
Visa’s role is not to a make a profit but to provide payment solutions for its member banks, enabling them to issue cards and process merchants’ Visa card transactions. The Visa products issued by the banks are safer, more convenient and more efficient than cash. Furthermore, they help to bring people into the banking system and to increase the funds available for commercial loans, the lifeblood of a growing economy.
About the Survey
More than 6,000 consumers across the United States, Canada, the United Kingdom, Germany, Russia, South Africa, Australia, China, India, Japan, Mexico, and Brazil responded to the survey, which was conducted in November and December 2005 by Harris Interactive. The margin of error is +/- 1.3 percent.
More information about the results of the global research, the dynamic password Display Visa card, and Visa’s ongoing commitment to securing electronic payments can be found by visiting www.visa.com/datasecurity or by contacting Simon Barker at globalmedia@visa.com.
About Visa Security
Visa has a multi-layered product and service strategy for fraud prevention. This includes neural networks to detect fraud patterns, chip and PIN technology to authenticate transactions and Verified by Visa for Internet purchases. Visa also works with issuing banks to help them secure and monitor accounts, works with law enforcement to identify criminals, and works with external forensics experts to identify techniques used by criminals.
