Data is the fuel that powers the modern economy, but research from the University of Warwick highlights how little confidence consumers have that their data is being managed well.

The study, which was conducted in partnership with Thales, found that consumers had the least faith in social media companies, the government, and media companies.

“Data breaches are so commonplace now, it is interesting and important to ascertain what consumers feel about this issue, which sectors they trust and what they feel needs to be done,” the researchers explain. “There is strong distrust in governments protecting data. What’s more, it shows that a significant number of those that have suffered a breach have taken clear action, including withdrawing from the service or taking legal action.”

Data governance

The findings emerged from a survey of over 21,000 consumers worldwide and the research suggests that there were clear differences in trust across countries as well as in different industries. For instance, the likes of the UK, Germany, and France scored poorly with around 20% of consumers trusting that their data would be well governed. This compares to over 90% in countries like Mexico and Brazil.

The authors argue, however, that perhaps these figures reflect an ignorance is bliss attitude, with regulations, such as GDPR, giving European consumers a greater awareness of their privacy rights and how organizations might abuse those rights.

The biggest concern was understandably around financial fraud, but identity theft was also a significant concern among respondents. Consumers regularly reported that they stopped using companies after suffering a data breach, with a significant proportion either taking or considering taking legal action.

“Consumers around the world have shown how important security is to them when it comes to digital services and their personal data,” the researchers conclude. “Whilst many would assume that compensation would come out top of the agenda, it is the protection of the system and future users that came out on top. What’s more, almost twice as many consumers wanted to ensure that the risks of future data breaches were mitigated by implementing better encryption and authentication protocols than receiving large fines, which indicates that they want to see real tangible change when it comes to security practices used.”