Half of US shoppers likely to avoid data breached retailers

Almost half of U.S. shoppers, 45 percent, said they would avoid holiday shopping at stores that were affected by data breaches in the past year, according to a CreditCards.com report.

Of the credit and debit card holders surveyed, 29 percent said that they would probably not shop at a retailer where personal information was exposed, while 16 percent said they would definitely no longer shop there.

The group of consumers, 31 percent, that are least likely to avoid the affected store are highest-income households with an annual income of $75,000 or more. Of households with an annual income under $30,000, 56 percent were not likely to avoid stores. And women are more likely to continue shopping at an affected store than men.

"It may sound weird, but the truth is that credit cards offer far greater consumer protections than debit cards, cash or other payment methods," said Matt Schulz, CreditCards.com's senior industry analyst. "This data seems to indicate that some consumers are getting the message."

Perhaps consumer mindset will relax a bit with the recent announcement that President Barack Obama signed an executive order to improve security measures for federal credit cards in an effort to lead the way for banks and retailers. The President also called on Congress to enact his Cybersecurity Legislative Proposal.

One in eight Americans said they are more likely to shop with credit cards this holiday season. And 48 percent said they plan to pay with cash more frequently this holiday season in response to the breaches.

It's no wonder, as data breaches are fresh in the minds of consumers. Just last week, Kmart (NYSE:SHLD) reported a breach in its payment data systems. And Kmart's breach is one of a slew of malware detections to happen in the retail industry over the past several months. Just last week, Bass & Co. announced a breach. Last month, Supervalu (NYSE:SVU) reported its second data breach in six weeks, around the same time that Home Depot (NYSE:HD) announced that the data breach of its U.S. and Canadian stores had affected 56 million debit and credit cards.

For more:
-See this CreditCards.com press release

Related stories
Supervalu becomes latest data breach victim
Supervalu's future lies in wholesale
Home Depot breach affects 56M debit, credit cards
Target breach cost $148 million; tech hub opens in Silicon Valley
Retailers still unprepared for security breaches

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