New Delhi, November 17
As many as 6 in 10 Indians report a personal data breach by their loan service providers, while 4 in 10 blame insurers or banks, according to a new report.
Nearly 59% of people with existing loans have been approached by other service providers to switch to another lending institution, either by email, phone call, SMS and WhatsApp in the past five years, while 40% of those with existing insurance policy(ies) were approached with a detailed competitive offer, according to the report by online community platform LocalCircles.
Meanwhile, 34% of people with bank accounts have been approached with offers to open a similar bank account. Among them, 23% had been approached several times and 11% once or twice.
“This indicates a massive data breach because the sender has access to an individual’s personal loan data which is used to send unsolicited loan offers,” the report said.
“Citizens whose data has been compromised by loan agencies, insurance companies and banks believe it was due to their weak internal and external data protection governance,” the results showed.
Clearly, people believe that financial institutions are failing in their responsibility to protect their personal data.
Asked how this data is compromised, the majority felt that it was the weak internal and external governance of financial institutions that led to it.
Additionally, 53% believed that it was the service providers of these institutions who compromised their personal data, while 38% believed that employees were also involved.
A sizable 43% also believed that the institutions themselves were compromising their information or selling it, an important enforcement or communication gap that financial institutions need to address.