KPMG Consumer Loss Barometer sees Malaysians most concerned about apps, wifi & cloud being compromisedApril 14, 2019
- 49% of Malaysians had financial information compromised vs 37% global average
- Report reveals mismatch between consumer expectations and security executive priorities
The continuous evolution of digital transformation is outstripping the pace of cybersecurity in organisations. As a result, we’re witnessing a fundamental disconnect between consumer expectations and concerns, and the ability of organisations to meet those expectations, according to KPMG’s Consumer Loss Barometer report.
The global survey of more than 2,000 consumers and 1,800 chief information security officers (CISOs) was conducted to assess whether there has been a shift in consumer expectations regarding digital trust, and whether organisations are placing the consumer’s security front and centre of their digital product offerings.
KPMG’s study found that consumers continue to have reservations about the possible misuse of their private details, with 69% of consumers globally reporting concerns about their technology being compromised. In particular, respondents from Malaysia are most concerned about apps (95%), Wi-Fi (82%) and cloud (77%) being compromised. It was further discovered that 49% of consumers from Malaysia said they have had their financial information compromised, higher than the global average of 37%.
On the matter of trust in social media and cloud platforms, 48% of consumers in Malaysia indicated they limit the amount of personal data stored online due to security and privacy concerns. Moreover, 45% indicated that they would like companies and organisations they interact with to disclose measures taken to protect their privacy and security.
On the other hand, two-thirds of CISOs say they prioritise financial loss and reputational risk over the impact on customer trust. According to the executive director of KPMG’s Emerging Tech Risk and Cyber unit in Malaysia, Ubaid Mustafa Qadiri (pic), the mismatch between consumer expectations and security executive priorities is a grave concern.
“It’s clear that organisations are still prioritising their bottom line ahead of consumer expectations and concerns, despite the opportunity to use effective cybersecurity strategy to build consumer confidence and engagement. Companies should not wait until an incident occurs to act; in times of crises, consumer trust will be lost,” Ubaid cautioned.
Apologies are not sufficient
In the event of a breach, consumers prefer compensation (42%) and proof of a fix (35%) over an apology (24%). Conversely, CISOs say they would prioritise an apology over provision of those details (47% and 8% respectively).
Ubaid commented, “As technology innovation progresses, consumers are revising upward their expectations on how organisations deliver digital products and services, and expect security as integral to their digital experience. The gap in expectations between consumers and enterprises offers a tremendous opportunity for forward-thinking organisations to redesign their…