Financial institutions face serious repercussions should they suffer a data security breach according to the 2005 EDS Financial Services Privacy and Customer Relationship Management Survey.
The survey indicates 30 percent of consumers would close all accounts and move their business to another financial institution if their personal information was compromised and a further 10 percent would close some of their accounts and use another bank. In addition, 55 percent would discontinue banking until they felt the crisis was resolved.
According to Peter Reid, EDS Security and Privacy Services Portfolio Manager, the survey demonstrates consumers' strong opinions about their privacy rights.
"With the recent widespread coverage of high-profile security breaches, consumers have started taking action to ensure their personal information is protected," said Reid. "Consumers have become the primary driving force of security and privacy initiatives and this not only affects financial institutions but it also affects the methods organizations use to collect data for marketing functions."