As retailers push new credit card and payment technologies to secure consumer data, a Parks Associates industry report finds consumer concerns of data vulnerabilities are widespread across the Internet of Things, including 40% of U.S. broadband households who are worried about the security of smartphones.

“The four major U.S. credit card issuers – Visa, MasterCard, American Express and Discover – set an October 1 deadline for retailers to implement an EMV (Europay, MasterCard, and Visa) payment system to replace standard credit card readers,” said Brad Russell, Research Analyst, Parks Associates. “Several high-profile breaches, including the hack of Target shoppers in 2014, drove this industry change, and while the headlines shook consumer confidence in their data security, they don’t hear much about the solutions. Companies need to communicate the steps they are taking to protect consumer privacy and data in order to build broader consumer confidence in the IoT ecosystem.”

Among U.S. broadband households, connected devices that prompted the highest levels of concern include computers, tablets, smartphones, smart door locks, and smart garage openers. Almost one-half of broadband households have privacy or security concerns about one or more smart home devices.

“Big data offers tremendous opportunities to enhance every aspect of business operations, but it carries a whole new level of liability and responsibility,” Russell said. “Consumer concerns increase an average of 30-50% with ownership of a device. For instance, privacy or security concerns for smart door locks increase from 39% among non-owners to 63% among device owners. Service providers, manufacturers, and app developers can all build personalized value-added services based on the data generated by these devices, but first consumers need to have the confidence to use these devices. Security is the price of big data benefits.”

Privacy and Big Data: Safeguarding Consumers evaluates best practices for companies to store and use data while providing consumers with the necessary levels of privacy and security. Parks Associates’ new report reviews the current cost of data breaches, the internal company practices that lead to breaches, and how breaches impact consumer relationships with brands. It also discusses the sources of big data, the value of big data analysis to enhance product performance and create new revenue streams, and the necessity of data security throughout the technology stack.

For more information or to purchase this research report, visit www.parksassociates.com. To request specific connected home data or an interview with an analyst, contact Holly Sprague at [email protected], 720.987.6614.

About Parks Associates: Parks Associates, a woman-founded and certified business, is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates provides business intelligence and research services through its proprietary methodologies developed over decades, including quarterly surveys of 10,000 internet households.

The company's expertise crosses many industries: home security and smart home, streaming video, broadband and pay-TV services, digital media and platforms, gaming, Wi-Fi and home networks, connected health, support, consumer electronics, home control systems, energy management, and tech solutions for the multi-dwelling (MDU), small-to-medium business (SMB), and commercial building markets.

Each year, Parks Associates brings thousands of leaders together for its webinars and annual events. The firm hosts the annual executive research and strategy conferences CONNECTIONS™, Connected Health Summit, Smart Energy Summit, Smart Spaces, and Future of Video. https://www.parksassociates.com
 

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