Nearly All Respondents Believe it is Important for Retailers to Upgrade Their Security Controls to Better Secure Customer Data in Light of Recent Breaches

New York, NY - Among the 81% of US adults who have at least one credit card, a majority (59%) currently have a card embedded with a microchip, according to a new study conducted by Ipsos Public Affairs on behalf of the American Bankers Association. These chip-enabled credit cards are becoming the norm, as they come equipped with fraud-prevention features, making them almost impossible to copy. Thieves can't create fake credit cards from stolen card numbers and use them at another store, and retailers must install new card readers for the chips to stop fraud. Seven in ten (70%) card holders agree that retailers should install new card readers that support this technology - available to small businesses for as little as $49 - in place as soon as possible.

When it comes to cards using the latest technology, cardholders overwhelmingly express their preference that credit card companies feature "dynamic" technologies that change information for every transaction over "static" ones, like personal identification numbers (PINs) that leave the information the same. More than three quarters (78%) of those who use credit cards said it is important for card security to feature "dynamic" technologies--like Apple Pay--that change information for every transaction. Meanwhile, less than one in ten (7%) say the opposite, while 14% are unsure about the importance of such new "dynamic" technologies.

With the move to chip technology, however, seven in ten (69%) express confidence that their personal data is safer than ever before, even without the use of a PIN.

Tokenization

Going beyond chip technology, tokenization is a new type of security driven by banks and credit card companies to better protect consumers. It replaces sensitive customer account data with a secure alternative number that is useless if stolen. Nearly nine in ten credit card holders (88%) believe it is important for credit card companies to prioritize new technologies like tokenization to stay ahead of ever-changing criminal efforts - including more than half who think this is very important (56%). Similarly, despite some retailers not having implemented more secure tokenization-based systems, another eight in ten credit card holders (79%) also feel it is important for retailers to prioritize new technologies like tokenization to stay ahead of ever-changing criminal efforts.

Security Breaches & Liability

Among those who do have a credit card, the thought of hackers illegally accessing the computer system of a retailer and stealing financial data (64%) is what makes them feel most vulnerable to fraud when using this method of payment, while about one in seven each feel most vulnerable to fraud when it comes to theft of a physical credit or debit card (16%) or "phishing" scams where emails or websites trick consumers into giving over their financial data online (13%). Very few (6%) say that they do not feel vulnerable to fraud in any of these ways.

Over the past few years, many large retailers have revealed that hackers have accessed their systems, gaining access to personal financial data of customers who made a purchase at their store - such as the breach at Target in December 2013 and Home Depot in September 2014. In light of recent data breaches, nearly all respondents surveyed feel that it is important for retailers to upgrade their security controls to better secure customer data (94%) - including more than three quarters (78%) who say that this is very important. Furthermore, two thirds (67%) believe that retailers should NOT store personal financial data of customers following these breaches - compared to only 16% who think they should.

Additionally, more than three quarters (78%) agree that the government should hold retailers, banks, and other companies involved in the payments system to the same security standards.

In cases of fraud, 81% of credit card holders place a great deal/quite a bit of value on zero-liability policies, in which the cardholder is not held liable for fraudulent charges on their card.

These are findings from an Ipsos poll conducted September 28th - 30th, 2015 on behalf of the American Bankers Association. For the survey, a sample of 1,006 U.S. adults age 18 and over was interviewed online in English, including 817 respondents who say that they have at least one credit card.

The sample for this study was randomly drawn from Ipsos's online panel, partner online panel sources, and "river" sampling and does not rely on a population frame in the traditional sense (For more information about Ipsos online polling methodology, please go here http://goo.gl/yJBkuf). Ipsos uses fixed sample targets, unique to each study, in drawing sample. The source of these population targets is U.S. Census 2014 American Community Survey data. The sample drawn for this study reflects fixed sample targets on demographics.

Statistical margins of error are not applicable to online polls. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error and measurement error. Where figures do not sum to 100, this is due to the effects of rounding. The precision of Ipsos online polls is measured using a credibility interval. In this case, the poll has a credibility interval of plus or minus 3.5 percentage points for all respondents (see link below for more info on Ipsos online polling "Credibility Intervals"). Ipsos calculates a design effect (DEFF) for each study based on the variation of the weights, following the formula of Kish (1965). This study had a credibility interval adjusted for design effect of the following (n=1,006, DEFF=1.5, adjusted Confidence Interval=5.0).

For more information on this news release please contact:

Chris Jackson Vice President Ipsos Public Affairs 202.420.2011 [email protected]

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