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Safeguarding personal information has become an essential facet of our digital lives. With a sprawling digital ecosystem and a constant exchange of data, the concept of privacy is continually redefined.
In this article, we present data privacy statistics that provide insight into how businesses and consumers handle this sensitive issue. This comprehensive review discusses data breaches, artificial intelligence and privacy concerns, and the alarming extent of data tracking by apps. Now that we have taken a moment to reflect on data privacy, buckle up and prepare for a retrospective!
Editor’s Picks
- 63% of consumers globally believe companies aren’t transparent about their personal data use, and about 48% have ceased purchasing from companies due to privacy concerns.
- Only 20% of consumers trust companies that publicize their consumer privacy interests; consumers want action rather than just statements.
- As per a survey conducted in France, the UK, Germany, and the US, consumers are most concerned about their financial/banking information (78%), followed by security data (75%) and identity data (70%). Medical data (61%) and contact data (57%) follow the priority list.
Companies that do not ask for information unrelated to their product are trusted by 52% of consumers, while companies that respond quickly to hacks and breaches are trusted by 50%.
Consumer Trust and Data Privacy
- According to Cisco’s 2022 Consumer Privacy Survey, 79% of respondents stated that it is too hard for them to understand how companies use their data.
- On the other hand, 76% of respondents in the same survey said they wouldn’t buy from a company they don’t trust with their data, and 81% believe that how an organization treats personal data indicates how it views and respects its customers.
- 39% of consumers prefer clear information from companies about data use, while 43% believe that lack of transparency makes it difficult to protect their data effectively.
- 51% of consumers use “private” or “incognito” mode in their browser to hide their online activity.
- 60% of consumers say they’d spend more money with a brand they trust with their personal information.
- According to Norton 2022 Cyber Safety Report, 26% of adults enabled multi-factor authentication on select accounts/devices.
- 80% of companies store sensitive data in the cloud.
Data Privacy and AI
- 40% of consumers see AI as a beneficial tool for improving their lives, while 72% believe organizations must use AI ethically and responsibly. (Cisco)
- A noteworthy 92% of respondents feel their organization needs to reassure customers that their data is used only for legitimate purposes when AI is involved (Cisco)
- Giving consumers opt-out options where AI is used was recommended as a top approach by 36% of survey respondents. (Cisco)
Taking the Opposite Road – A Corporate Perspective
According to Cisco Data Privacy Benchmark Study 2023:
- 95% of respondents recognize privacy as a business necessity, up from 90% last year.
- 94% believe their customers won’t buy from them if data isn’t properly protected, an increase from 90% in the previous year.
- Encouragingly, 36% of organizations report a return on privacy investments that’s at least twice their spending, suggesting that privacy protection can be a sound financial investment.
- MFA is used by 69% of companies. Interestingly, a recent JumpCloud study found that small and medium-sized enterprises (SMEs) use MFA more frequently: 83% require employees to use MFA to access all of their resources.
- Cloud backups are used by 63% of companies, while encryption is used by 62%.
- It is estimated that the average organization gets 1.8 times more value from data privacy than it spends. 36% of organizations are getting returns at least twice their spending, with many getting returns of three to five times their investment.
Data Breaches: An Unwanted Reality
- 44% of data breaches include customer names, email addresses, and passwords
- In 2023, the average cost of a data breach was a staggering $4.45 million worldwide.
- When comparing breaches with and without a remote workforce, the average cost of a breach with a remote workforce was an additional $173,074.
- 11% of companies took up to 6 months to inform consumers about a data breach. An additional 5% took an entire year to do so.
The Legal Landscape and Consumer Actions
- Globally, 71% of countries have data privacy legislation in place, with only 15% lacking any such legal framework.
- In the US, 66% of consumers advocate for GDPR-like privacy laws.
- Approximately $12 billion worth of personal information is protected under the California Consumer Privacy Act each year.
Apps: A Hidden Threat
- 55.2% of the apps on Google Play share user data.
- On average, a free app shares seven times more data points than a paid app.
- Just 18% of US social media users feel Facebook protects their data and privacy.
- More than 80% of US voters support the major provisions in the American Data Privacy and Protection Act, emphasizing user consent and stricter regulations for minors’ data collection.
Wrap-up
In the face of these statistics, it’s clear that data privacy is a pivotal issue for both consumers and businesses. While awareness about privacy is increasing, there’s still a significant gap between perception and practice. Data breaches remain a real threat, underlining the importance of robust privacy legislation and ethical business practices. A collective commitment to transparency, ethical data use, and proactive protection measures can help bridge the gap and build a more secure digital landscape.
What can you do to secure your organization and users? Explore the security section of our blog to dive into topics around privacy, modern attack vectors, how AI is shaping the security landscape, and more.
