1) Privacy and security concerns have moved from the backroom to the boardroom as data breaches make headlines worldwide. 2) A survey found that over two-thirds of global consumers feel more concerned about data security and privacy than five years ago and sense a loss of control over their personal information. 3) Financial institutions and online retailers have a notable gap between the importance consumers place on privacy/security and the level of trust in these industries to protect personal data.

1. Privacy & Security: The New Drivers of
Brand, Reputation and Action
Global Insights 2012

2. Data security and privacy have moved from
the backroom to the boardroom.
Data breaches, security incidents and Edelman’s industry study shows, for the
privacy missteps are making headlines first time, why managing data security
worldwide and have become a focal and privacy impact business success.
point for social media discussions and Our survey reveals:
legislation.
The gap between consumer expectations
Managing data security and privacy and what businesses are actually
effectively is essential to businesses delivering.
today. The growing volume and A relationship between effective data
sensitivity of information being shared, protection and business success.
stored and used is driving demand for That data security and privacy
greater transparency about how it is considerations do impact purchasing
being managed and protected. decisions.

3. People care about the security of their
personal information more than ever before.
A majority of consumers are more concerned about data security and
privacy than they were five years ago and sense they are powerless to
exert control, leaving companies with the responsibility for protecting it.
of global consumers are
70% MORE CONCERNED
than they were 5 years ago
of global consumers feel they have
68% LOST CONTROL
over how their personal information
is shared and used by companies
Base: All respondents (Global n=4,050)
Q12. Compared to five years ago, how has your level of concern regarding online data security and privacy changed?
Q15. Using a scale of 1 to 5, where 1 means “strongly disagree” and 5 means “strongly agree,” please indicate your level of agreement with the following
statements. (Summary of top 2 box scores shown)

4. These concerns present both a challenge and
an opportunity for businesses.
Consumers are fed up with the status quo and want companies to act,
having seen either no change or a decline in the security of their data
over the last five years.
Security of Personal Information Online
Compared to Five Years Ago (Global)
of global consumers feel their 7% Much more secure
32% online privacy is adequately
PROTECTED by business practices
Somewhat more secure
No Change
36%
Somewhat less secure
Much less secure
of global consumers feel companies
85% need to take security & privacy 23%
57% of consumers report no
MORE SERIOUSLY change or a decline in the
security of their personal
25% information online
9%
Base: All respondents (Global n=4,050)
Q15. Using a scale of 1 to 5, where 1 means “strongly disagree” and 5 means “strongly agree,” please indicate your level of agreement with the following
statements. (Summary of top 2 box scores shown)
Q14. Compared to five years ago, how would you describe the security of your personal information online?

5. Adults are most concerned about information
held by businesses they use most frequently.
Online shopping and banking, which require the sharing of financial
information, are the most common online activities. Understandably,
consumers are most concerned about the security of their financial
information.
Most Common Online Activities Information of Greatest Concern Online (Global)
(Global)
Financial information 90%
Personal information 78%
Online Shopping 82% Emails 36%
Health information 28%
Frequent purchase / shopping data 26%
Content posted by you to social networks 17%
Online Banking 80% Content posted by others to social networks 13%
Browsing activity 12%
Base: All respondents (Global n=4,050)
Q1. Which of the following actions have you taken in the past three months?
Q3. What types of online personal information are you most concerned about? Please order the following types of information from least to most important.

6. Financial institutions and online retailers are
not meeting the needs of their customers.
A notable gap exists between the number of people who consider data
security important in the finance and online retail industries and the
number who actually trust them to protect personal information.
23-point gap in expectations
51-point gap in expectations
92% Importance of privacy and security in each industry (global)
84%
78% 77% Trust in each industry to protect personal information (global)
69% 69%
63%
51% 50% 50%
48%
43%
37%
33%
27% 23%
12% 12% 9% 11%
6%
Finance Online Medical & Government Social Technology News & Automotive Food & Gaming Utilities*
Shopping & Healthcare Networking Media Grocery
Retail
NOTE: Q7: summary of top 2 box scores shown; Q8: top three industries selected
Base: All respondents (Global n=4,050)
Q7. How important is your privacy and security when doing business with the following industries? *NOTE: Utilities not included as a response code
Q8. Which industry do you trust most to adequately protect your personal information? Please select the top three industries.

7. Concern over businesses’ ability to protect
information impacts engagement in activities
important to online retailers and banks.
Consumers report abstaining from frequent shopping or loyalty card
programs and online banking to protect their personal information.
Consumers Taking Action to Protect their Online Information
ONE in FIVE adults
do not join a frequent shopping ONE in TEN adults
card or loyalty card program do not bank online
Base: All respondents (Global n=4,050)
Q4. Which of the following actions have you taken to protect your online information?

8. Consumers consider data security and privacy
features when purchasing tech products.
Nearly half of consumers reported that data security is among the top
three factors they consider when purchasing a smartphone.
Top Three Most Important Factors Considered
When Purchasing Smartphones (Global)
69%
61%
48% 47%
40%
35%
Price Ease of Use Data Security & Privacy Style & Design Product Warranty Physical Dimensions
(size, weight)
Base: All respondents (Global n=4,050)
Q5. In your opinion, when making a decision to purchase the types of products below, what factors are most important? Select up to three choices.

9. Security considerations also impact other
purchasing decisions.
For personal computers and tablets, security considerations are on par with
style, design and physical dimensions of the product.
Top Three Most Important Factors Considered
When Purchasing Tablets and Personal Computers (Global)
Price 71%
75%
Ease of Use 59%
53%
Data Security & Privacy 42%
51%
Style & Design 42%
34%
Product Warranty 45%
54%
Physical Dimensions (size, weight) 43%
34%
Base: All respondents (Global n=4,050) Tablets Personal Computers
Q5. In your opinion, when making a decision to purchase the types of products below, what factors are most important? Select up to three choices.

10. Security considerations also impact other
purchasing decisions.
Even shoppers of traditional mobile phones and videogame consoles feel
security is a key concern.
of global consumers consider
DATA SECURITY AND PRIVACY
29% among the top 3 most important factors
when purchasing standard mobile phones
of global consumers consider
22% DATA SECURITY AND PRIVACY
among the top 3 most important factors
when purchasing videogame consoles
Base: All respondents (Global n=4,050)
Q5. In your opinion, when making a decision to purchase the types of products below, what factors are most important? Select up to three choices.

11. Smartphones are suffering from a trust gap.
More customers take security into account when purchasing a smartphone
than say they trust the security of the devices. Comparatively, smartphones
are considered the least secure devices.
Consumers selecting Data Security and Privacy among Top Three Most Important
Factors vs. Trust in Security of Devices (Global)
14-point difference in consumers considering security
58% important and those that trust security for smartphones
51%
48%
44%
42%
37% 37%
34%
29%
22%
17%
Personal Computers Tablets Smartphones Standard Mobile Videogame Console Digital Music Player*
Phones
Consumers selecting Data Security & Privacy among Top Three Important Factors Trust in Security of Device
Base: All respondents (Global n=4,050)
Q5. In your opinion, when making a decision to purchase the types of products below, what factors are most important? Select up to three choices.
Q6.Please indicate your level of trust in the security of the following types of products. *NOTE: Digital music player not included as a response code

12. The premium on security translates to adoption
and retention of consumers.
Consumers indicate willingness to leave online services if personal
information was accessed without permission and are most concerned
about services that involve financial information.
Consumers Likely to Switch Providers or Stop Using Services Entirely if Personal
Information was Accessed Without Permission (Global)
80% 79% 77% 75% 75%
67% 67% 65% 63% 59% 55% 55% 54% 50%
Base: All respondents (Global n=4,050)
Q9. For the following types of companies, if your personal information was accessed without your permission, how likely would you be to switch to a different provider or
stop using these services entirely, if they did have personal information on you? Please use a scale of 1-5, where 1 is “not at all likely” and 5 is “very likely.”

13. Businesses must manage security and
privacy like a line of business and will lose
customers if they do not.
Data shows that inaction on issues of data security and privacy will put
businesses are risk of losing their customer base.
Consumers that have Left or Avoided Companies because of
Security Issues they have had in the Past
58%
55% 53% 52%
46%
41%
36%
31%
Global US Brazil China Germany India Korea UK
Base: All respondents (Global n=4,050)
Q16. Have you ever left or avoided companies because they have had security issues in the past?

14. Consumers indicate they will act to protect their
privacy if businesses don’t.
In the wake of a data breach, individuals are even willing to abandon the
companies they trust most. Data breaches may also impact reputation
due to the strong tendency of victims to share their experiences.
Americans proved most loyal to the Actions Taken following Data Breach Events
companies they do business with, yet
ONE in TWO say they are likely to of global consumers
change brands after a data breach 39% TOLD A FRIEND
about their experience
of global consumers would
71% SWITCH PROVIDERS of global consumers
after a company they rarely
used suffered a data breach
29% POSTED ONLINE
about their experience
Base: All respondents (Global n=4,050)
Q10. If the brand you trust most and use most loyally suffered a data breach, how likely would you be to switch brands?
Q11. If a brand you rarely use (but still has your personal data) suffered a data breach, how likely would you be to switch brands?
Q21. Did you take any action following these events?