We've continued to hear that there are encouraging signs of economic recovery all around. But how do those trends play into perceptions about the security of personal and financial information? Learn how attitudes about data breaches and payment card fraud continue to evolve as more of the population becomes impacted as victims, and how that adjusts expectations about response, support and engagement from the business.

1. 1
EDELMAN BERLAND
Experian Data Breach Resolution
Consumer Survey
“Data Breaches & Payment Card Fraud”
January 2015

2. 2 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
WHO HOW MANY ACCURACY WHEN HOW
Adults Nationwide
(18+)
n=1,000
Margin of Error =
± 3.1%
Data Collection
Occurred
December 22-30,
2014
Online Survey
RESEARCH OBJECTIVE:
To garner media-genic research around consumer perceptions, confidence and behaviors with regard to
securing personal information and monitoring financial transactions
Research Methodology

3. CONFIDENCE & TRUST

4. 4 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
Consumer confidence is soft and many are uncertain about the likelihood of
their personal financial information getting exposed or stolen
Q5: To what extent do you agree or disagree with each of the following statements?
23%
37%
23%
14%
4%
“I feel confident that my personal
financial information is secure.”
15%
21%
30%
23%
11%
“It is unlikely that my personal financial
information will be exposed or stolen.”
Strongly agree
Somewhat agree
Neither agree nor disagree
Somewhat disagree
Strongly disagree
18%
NOT CONFIDENT
59%
CONFIDENT
34%
LIKELY
36%
UNLIKELY

5. 5 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
Consumers rely on banks and payment card providers to monitor their
accounts for fraudulent transactions
Q5: To what extent do you agree or disagree with each of the following statements?
21%
11%
68%
Responsibility for Catching Fraudulent Transactions
(Shown: % Agree with each statement)
I am proactive about monitoring
my own financial accounts for
fraudulent transactions.
I rely on my bank and payment
card issuers to alert me of
fraudulent transactions.
Agree with both statements
71%
OF CONSUMERS TRUST
THEIR BANKS AND
CREDIT / DEBIT
PROVIDERS TO CATCH
AND ALERT THEM OF
ANY FRAUDULENT
CHARGES

6. 6 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
Men and Millennials have the greatest confidence in their financial security
and are most apt to trust banks and card companies
Q5: To what extent do you agree or disagree with each of the following statements?
68%
48%51%
25%
69%
48%
53%
34%
I feel confident that my
personal financial
information is secure.
It is unlikely that my
personal financial
information will be exposed
or stolen.
Confidence by Gender and Age
(Shown: % Somewhat or strongly agree)
Men Women 18-34 65+
74% 73%
69% 68%
77% 79%
72% 70%
I trust my bank to catch and
alert me of any fraudulent
charges to my account.
I trust my credit / debit
provider to catch and alert
me of any fraudulent charges
to my account.
Trust by Gender and Age
(Shown: % Somewhat or strongly agree)
Men Women 18-34 65+

7. 7 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
While consumers feel that they are able to monitor their financial
transactions, they acknowledge it can be challenging and time-consuming
Q5: To what extent do you agree or disagree with each of the following statements?
79%
74%
55%
43%
I feel that I can keep track of all of my
financial transactions.
I have the tools and resources to
monitor my financial transactions.
Monitoring all of my financial
transactions is challenging.
Monitoring all of my financial
transactions is too time-consuming.
Fraud Monitoring Perceptions
(Shown: % Somewhat or strongly agree)
1-2
Credit
Cards
3+ Credit
Cards Men Women
80% 80% 81% 77%
75% 77% 76% 72%
55% 55% 59% 50%
48% 42% 53% 34%

8. 8 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
To varying degrees, many consumers have had some recent experience
with financial fraud
Q14: In the past 3 months, have you… ?
Q15: Which of the following describes your personal experience with identity theft / fraud? (Asked if a victim of identity theft or fraud, n=65)
32%
21%
17%
7%
Received a phishing scam
email
Received a notification about
a possible fraudulent charge
Received a data breach
notification letter from a retail
store
Been a victim of identity theft
or fraud
Recent Financial Fraud Experience
(Shown: % Experienced in the past 3 months)
66%
29%
18%
17%
My credit / debit card
information was used to
make purchases
A collections notice for an
unpaid bill was on my
credit report
Someone used my medical
insurance information
A new financial account
was opened in my name
Recent Identity Theft Experience
(Shown: % Experienced by identity theft victims)
AT LEAST ONE OF THESE50%

9. HOLIDAY SHOPPING IMPACT

10. 10 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
24%
40%
28%
8%
Concern about Stolen Payment Card Information
Very concerned Somewhat concerned
Not too concerned Not at all concerned
Most consumers were concerned about their financial security this holiday
season, especially those recently affected by breaches and fraud
Q6: During the holiday shopping season, how concerned were you about your payment card information being stolen?
36%
NOT CONCERNED
64%
CONCERNED
64%
70%
80% 81%
89%
Overall Phishing
scam email
Fraudulent
charge
notification
Data
breach
notification
letter
Identity
theft or
fraud
Concern by Fraud Experience
(Shown: % Concerned)

11. 11 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
Many shoppers report paying more with cash and credit, rather than debit
cards, this holiday season
Q7: How, if at all, will / did recent retail data breaches impact the way you make / made purchases during the holiday season?
36%
22%
16%
15%
13%
12%
8%
40%
23%
25%
18%
14%
14%
Pay with cash more
Pay with credit cards instead of debit cards
Shop at stores that had a data breach less / not at all
Pay with debit cards less / not at all
Pay with credit cards less / not at all
Shop online less / not at all
Pay with store credit cards less / not at all
Data Breach Impact on Purchase Type
(Shown: % Actual and Anticipated)
Actual Anticipated
OF RESPONDENTS SAY DATA BREACHES AFFECTED THE WAY THEY SHOPPED64%
Shown: (% Actual)
Data
Breach
Victim
Not
Breach
Victim
ID
Theft
Victim
Not ID
Theft
Victim
40% 35% 40% 36%
28% 20% 28% 21%
24% 14% 26% 15%
18% 14% 22% 14%
20% 11% 20% 12%
20% 11% 28% 11%
13% 7% 14% 8%

12. 12 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
One in five shoppers did not make holiday purchases at stores that had a
data breach
Q8: How, if at all, did recent retail data breaches impact where you made purchases during the holiday season?
21%
20%
19%
17%
Shop at stores that had a data breach but did not use a debit
card to pay for purchases
Was concerned about shopping at stores that had a data
breach but did so anyway
Didn’t shop at stores that had a data breach
Shop at stores that had a data breach but did not use a credit
card to pay for purchases
Data Breach Impact on Shopping Location
(Shown: % Selected)
OF RESPONDENTS SAY DATA BREACHES AFFECTED THEIR SHOPPING BEHAVIORS48%
Data
Breach
Victim
Not
Breach
Victim
ID
Theft
Victim
Not ID
Theft
Victim
33% 18% 34% 20%
30% 17% 29% 19%
15% 19% 23% 18%
22% 15% 23% 16%

13. FRAUD MONITORING

14. 14 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
During the holiday shopping season, most engaged in multiple monitoring
activities
Q9: How, if at all, did you monitor for fraud over the holiday shopping season?
61%
39%
32%
25%
24%
14%
9%
Check bank or payment card statements
online
Check mailed bank or payment card
statements
Pay attention to news for retail data
breaches
Check bank or payment card statements
on a mobile app
Check credit report
Use a paid credit monitoring service
Use personal finance management
software
Fraud Monitoring Activities
(Shown: % Done over the holiday shopping season)
MONITORED THEIR CREDIT
Data
Breach
Victim
Not
Breach
Victim
ID
Theft
Victim
Not ID
Theft
Victim
67% 60% 52% 61%
42% 38% 37% 39%
41% 31% 31% 32%
41% 21% 38% 24%
36% 22% 35% 24%
25% 12% 25% 13%
16% 8% 18% 9%
33%ENGAGED IN 2 OR MORE MONITORING ACTIVITIES60%

15. 15 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
Data breach victims and consumers who check their statements on a mobile
app review their transactions more regularly
Q10: How often did you check your bank / payment card statements for possible fraud over the holiday shopping season? (Asked if checked bank / payment
card statements, n=808)
Q13: Generally, which of the following best describes how you interact with your credit card statements before paying them? (Asked among credit card users,
n=870)
70%
23%
7%
Interaction with Credit Card Statements
(Shown: Among credit card users)
Thoroughly review transactions
Skim transactions
Do not review transactions
21% 17% 12%
79% 83% 88%
Overall Data breach
victims
Check statements
on mobile app
Statement Monitoring Frequency
(Shown: Among those that check statements)
Less than weekly Weekly or more

16. 16 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
Consumers that check their statements on a mobile app or monitor their
credit have greater confidence that their financial information is secure
Q5: To what extent do you agree or disagree with each of the following statements? “I feel confident that my personal financial information is secure.”
Q9: How, if at all, did you monitor for fraud over the holiday shopping season?
68%
72%
Do not check statements Check statements on
mobile app
Confidence & Statement Monitoring
(Shown: % Confident in financial security)
55%
68%
Do not monitor credit Monitor credit
Confidence & Credit Monitoring
(Shown: % Confident in financial security)

17. 17 © Copyright 2014 Daniel J Edelman Inc. Intelligent Engagement
One in four consumers plans to monitor their credit more vigilantly in 2015
Q11: Which, if any, of the following are your 2015 New Year’s identity theft and fraud protection resolutions?
32%
31%
29%
27%
26%
24%
21%
17%
14%
11%
Monitor my payment card transactions more often
Limit what personal information I provide to businesses
Monitor my payment card transactions in more detail
Shop more with cash instead of using credit or debit
Create new / more complex passwords and PINs
Check my credit report more often
Purchase / update my anti-virus and antimalware
Shop more with a credit card instead of using debit
Enroll in identity theft protection / credit monitoring
Use personal finance management software
2015 New Year’s Resolutions
26%
OF CONSUMERS
ARE RESOLVED TO
CHECK THEIR
CREDIT REPORT
MORE OFTEN OR
ENROLL IN CREDIT
MONITORING IN
2015