Consumers demanding more protection from data breaches

Australian consumers are increasingly angry about the personal data practices of businesses and brands, and they’re demanding accountability and compensation when things go wrong, the 2023 edition of the Deloitte Australian Privacy Index has found.

Key results from Deloitte’s ninth annual assessment of consumer views on privacy, and the privacy practices of leading Australian consumer brands, include revealing that one-third of consumers have been affected by a data breach in the past 12 months, with 69% of those impacted feeling vulnerable or angry as a result.

Twice as many were angry with the organisation (24%) than the cyber criminals behind it (12%) as 80% of people believe organisations should be held liable for compensating data breach victims.

Over a third (35%) of respondents said that they have chosen not to buy a product or service because an organisation asked to collect personal

The report also found that 90% want more done to protect their data, 86% want new rules and regulations around data storage and processing and 63% believe governments should be responsible for maintaining standards and regulating data storage and possession.

Deloitte cyber risk advisory partner, Kate Monckton, said data breaches and cyberattacks in Australia and overseas have seen millions of people’s personal details stolen and misused. 

“As a result, many of us are living with an underlying, ever-present fear that we’re losing the data control battle – we’re experiencing ‘data insecurity’. Confidence in businesses and brands to protect personal information has been eroded and trust is on shaky ground," she said.

“We are more privacy aware than ever, more cautious than ever about sharing personal information, and more anxious about the type of information organisations are requesting.

“And in an obvious challenge for the data collectors, people impacted by a breach are far more likely to be angry with the organisation experiencing the breach than the cyber criminals behind it. They want accountability, and they want to be compensated for the potential harm and inconvenience.”

Monckton said that effective change will need active engagement from organisations, government and individuals.

“We can all be proactive with privacy and our personal information – from staying informed about data privacy, using, and regularly changing, strong passwords, regularly reviewing and adjusting app permissions, limiting data sharing, reporting suspected breaches to relevant authorities or platforms and supporting privacy-conscious companies," she said.

“Governments, of course, need to be really active – by creating and enforcing policies that foster transparency and a secure digital environment that aligns with consumer expectations.

“And for businesses and brands, well, they have everything to gain by listening to consumers and their concerns. Simply meeting regulatory requirements just isn’t enough. They need to be proactive, go beyond compliance and embrace transparency and security. Alongside accountability, this is essential to building trust, maintaining customer loyalty, and even gaining a competitive edge.”