Flying blind on privacy? Breaches force marketers to rethink consumer trust

A wave of data breaches has placed brands under growing scrutiny as consumer expectations around privacy evolve. 

The recent Qantas cyber-incident, which potentially exposed the personal information of up to six million customers, has reignited public concern about how well organisations protect sensitive customer data. 

Industry insiders told AdNews that trust is now a frontline issue in brand reputation, with consumers increasingly aware of what’s at stake. 

Andrea Martens, CEO of ADMA, said data protection is a whole-of-organisation responsibility.

“For marketers, who rely on personal information to create tailored, high-impact experiences, the imperative is clear: embed robust data governance into the everyday,” she said. 

“Every employee – not just those in legal or IT – should be equipped to recognise a potential breach and understand how to escalate it appropriately. 

“Having defined escalation paths and decision-making protocols ensures any response can begin swiftly, with coordination and control – which are critical in containing impact and upholding trust.”

Martens said trust is everything in the data economy. 

“When trust is strong, consumers are more willing to share information, engage meaningfully and form lasting connections,” she said. 

“A data breach can put that trust to the test, While consumers may not distinguish between technical causes or legal definitions, they are quick to recognise when their personal information may be at risk. That moment of uncertainty can lead to hesitation – in sharing data, in engaging with brands and in believing that their privacy is respected.

“A breach is not the end of trust - but it is a pivotal moment. How the industry responds, educates, and engages in the aftermath shapes not just recovery, but long-term resilience in the data relationship.”

Renata Freund, founder of consultancy Honeycomb Strategy, said data breaches are happening more often. 

She said consumers know it’s going to get worse, but instead of becoming desensitised, they’re holding brands to higher standards. 

“There’s a growing expectation that businesses only collect the data they really need, and then do everything possible to keep that data safe,” she told AdNews. 

“Consumers are most concerned about personal details, with date of birth, address, bank details and phone number top of the list.

“This is the type of information they expect brands to prioritise protecting, with strict controls on who has access.”

Freund said data about brand interactions such as loyalty status, points balances or past purchases tends to feel less sensitive to most people.

“Brands would do well to apply this lens when deciding how they collect, store and secure customer data,” she said. 

“In Qantas’ case, they’ve handled the situation well by communicating openly with affected customers, which history has shown is a critical step in managing consumer frustration and starting to rebuild trust.”

Jonas Jaanimagi, technology lead at IAB Australia, said a wave of high-profile data breaches has eroded consumer trust in how personal data is handled. 

“These incidents act as a clarion call for us all to better prioritise consumer data protection – not merely as a compliance exercise but as a cornerstone of ethical practices and a focus on re-establishing trust,” he said. 

“Our industry must commit to rigorous due diligence, regular reviews of data supply chains and ensure every partner is adhering to industry best practices and privacy standards. 

“This means going beyond tick-box compliance to actively map data flows, verify consent mechanisms and audit vendor contracts for completeness and transparency.”

Jaanimagi said mitigating the risk of data exposure is only possible if robust safeguards are in place. 

“Standards such as The IAB Tech Lab’s Data Deletion Request Framework (DDRF)... empower organisations to align with consumer expectations and regulatory demands, ensuring personal data is not only collected responsibly but also removed efficiently when requested,” he said. 

“However, tools such as the DDRF are only as effective as the diligence behind their adoption.”

Daniel Rayne, lecturer of marketing at RMIT University, said data breaches have adverse short-term reputational effects on brands, which may extend into longer-term impacts through significant trust erosion.

“For Qantas, previous negative consumer perceptions towards the brand from well-publicised service and operational issues may be exacerbated following the data breach,” he told AdNews. 

“Considering the data breach impacted the Qantas Frequent Flyer database, affected customers may experience significant concern or frustration over the potential exposure of their personal information. 

“However, given their longstanding loyalty and accumulated rewards, it is improbable that a substantial number of customers will switch to another airline.” 

Rayne said there’s not a “one size fits all” consumer reaction to data breaches. 

“In the case of the Qantas data breach, customers’ names, email addresses, phone numbers, birth dates and frequent flyer numbers are at risk of being leaked, thus given the scale of personal information at risk here, consumers will likely feel very concerned,” he said. 

“Consumers are not necessarily surprised by data breaches but believe that organisations must take proactive measures for prevention. If a leak were to occur, then swift notification, accountability and transparency is expected.”