As many as 6 in 10 Indians report personal data breach by their loan service providers while 4 in 10 blame insurance providers or banks, a new report has revealed.
In the last five years, nearly 59 percent of those with existing loans have been approached by alternate service providers to switch to another lending institution either via email, phone call, SMS, and WhatsApp, while 40 percent of those with existing insurance policy/policies have been approached with detailed competitive offer, according to the report by online community platform LocalCircles.
Meanwhile, 34 percent with bank accounts have been approached with offers to open a similar bank account. Out of them, 23 percent had been approached several times and 11 percent once or twice.
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“This indicates a massive data breach as the sender has access to an individual’s personal loan data which is being used to send unsolicited loan offers,” the report showed.
“Citizens whose data got compromised by loan agencies, insurance companies and banks believe it was due to their weak data protection governance internally and externally,” the findings showed.
It is clear that people believe financial institutions are failing in their responsibility to protect their personal data.
Asked about how such data is getting compromised, the majority felt it was the weak internal and external governance at the financial institutions that was leading to it.
Also, 53 per cent felt that it was the service providers of these institutions that compromise their personal data, while 38 per cent felt employees were involved as well.
A sizable 43 per cent also felt that the institutions themselves were compromising their information or selling it, a big enforcement or communication gap that the financial institutions must plug.
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