As high-profile data breaches make international headlines at an alarmingly steady pace, Americans’ trust in the companies they do business with on a regular basis is slipping.
According to a new survey released by Gallup, only about two in 10 Americans claim a high level of trust in companies’ ability to keep their personal data secure.
A majority of Americans (55%) say their trust level decreased a little or a lot over the past year, on the heels of such breaches as those experienced by Anthem Insurance, Home Depot and Sony Pictures.
Gallup’s findings are based on its Panel Web study including 11,043 American adults ages 18 and older between Nov. 20 to Dec. 1, 2014.
Gallup selects panel members using random-digit-dial telephone interviews that include cellphones and landlines both. Gallup also incorporates address-based sampling and has established its panel without providing incentives for opt-in abilities.
Some Industries Are More Trustworthy than Others
While consumer trust is down across the board, Gallup found that some industries fare better in trustworthiness than others.
About nine in 10 consumers (91%) say they have a lot or at least some trust in their primary bank to keep their personal information safe.
Brick-and-mortar retailors come in second, but with a sizeable lag at 69%. Health insurance companies (68%) and credit card companies (66%) come in third and fourth places, respectively.
Email providers and cellphone platforms are in fifth at 63%.
Trust in government ability to keep data safe is also low with only 52% of Americans saying state governments can keep their data safe. An estimated 45% of Americans have trust in the federal government to do the same.
The final placeholder in Gallup’s study is the social networking and application industry. Only about two in 10 (23%) of Americans claim a lot to some trust in data security in these industries.
The decline overall is also steep. Gallup researchers asked respondents how their trust in companies they regularly do business with has fared over the past year. More than half of adults (55%) said it had decreased by a little to a lot.
Generational Perceptions Vary
Generational differences do seem to play a role in perceived trustworthiness, Gallup reports.
When asked about a change in trust over the past year about six in 10 (61%) of Generations Xers, those born between 1965 and 1979, said their trust decreased a little to a lot. Other generations responded as follows:
- Baby Boomers (1946-1964) – 58%
- Traditionalists (1945 or earlier) – 47%
- Millennials (1980 to 1996) – 50%
While the generations all reported trusting the banking industry more than others, there are some differences based on age group.
For example, about 51% of Millennials report some to a lot of trust in the federal government compared to 38% of traditionalists.
In regard to state government, 61% of Millennials have some or a lot compared with the 48% of Generation Xers who feel the same way.
The results add up to a need for industries across the board to improve consumers’ perception of trustworthiness, Gallup researchers point out.
“Managing the consistency of consumers’ perception of trustworthiness across an organization offers a potential advantage over competitors,” Gallup concluded.
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