The loss or theft of private or confidential data is endemic amongst UK firms, according to research released today.
The survey of over 900 UK data protection professionals and marketing professionals conducted by the Ponemon Institute found almost two-thirds (61 per cent) had experienced a data breach involving the loss or theft of consumer information over the past 24 months.
Worse still, 90 per cent of these data breach cases went unreported to customers, as the organisation felt that they were either not required to do so, or were unsure whether they had to.
A key finding of the 2008 UK Study on Email Marketing Practices & Privacy commissioned by StrongMail was that email marketing emerged as the biggest risk to the privacy of UK consumer data, ahead of internet, telemarketing and direct mail outbound marketing channels.
The survey also revealed UK firms who had outsourced key marketing functions to third party providers suffered 28 per cent more data breach incidences than those who had not, while 42 per cent more likely to attribute data theft or loss to the provider than in-house personnel. The researcher said this called into question the security impact on the total value of perceived cost savings or efficiency gains from outsourcing in the first place.
Larry Ponemon, founder of the Ponemon Institute and author of the study, said: "Although 60 per cent of UK marketeers outsource their email marketing today, 65 per cent [and 66 per cent of data protection professionals] would consider in-sourcing their email marketing campaigns to ensure greater protection over personal data. The message is, albeit slowly, getting home."
Despite this, nearly two thirds (61 per cent) who managed email marketing in-house had still suffered data breaches and 38 per cent said it had happened more than two times in the past year. And by contrast, less than half (43 per cent) of data protection professionals report that their organisations had a data breach and only 14 per cent said that a data breach occurred more than two times.
Moreover, although respondents claimed to be among the three quarters of UK firms who claim to limit the types of personal information they share with third parties for marketing purposes, seven per cent would disclose customers' sexual orientation and 14 per cent would share details on political affiliation or activism. Most shocking perhaps though was the admission by further one in five (19 per cent) would give out customer credit card details.
