The COVID-19 pandemic has reduced in-person interactions between businesses and consumers, allowing digital channels to fill the gap for customers as these channels have seen a rapid rise, with consumers' take-up of digital channels increasing +18% (from 26% pre-COVID-19 to 44% now), according to a KPMG survey Responding to consumer trends in the new reality. However, the rapid growth of users and the strain on companies to quickly develop and expand the capabilities of their online platform also come with cybersecurity and data privacy risks, which could damage trust and reputation of the services.
Following a recent data breach in Thailand, the Digital Economy and Society (DES) Ministry on 24 November 2020 pushed for e-commerce platforms to be registered with the Electronic Transactions Development Agency (ETDA) to increase protection and strengthen cybersecurity.
Consumers' heightened awareness of security and data privacy concerns is a call for e-commerce platforms to better manage cyber risks and take serious steps to protect users' information.
According to the survey, customers' trust in brands have eroded in recent years. Their success in rebuilding trust and propelling future growth depends on communicating and demonstrating commitments to their customer's data security. Especially with Thailand's Personal Data Protection Act (PDPA) coming into effect on 1 June 2021, it is crucial that e-commerce operators start the preparation process now to be compliant by that time.
Siraporn Chulasatpakdy, Partner, Advisory - Head of Management Consulting and Cyber Security, KPMG in Thailand said, "Focusing on technology alone to address these issues is not enough. Effectively managing cyber risk means putting in place the right governance and the right supporting processes, along with the right enabling technology. Cyber security and data privacy must be approached in a holistic way, including prevention, detection and having a response plan."
"E-commerce platforms must continue to demonstrate their commitment to data protection and respond to the consumer concerns, particularly trust - by taking measures to strengthen cybersecurity to ensure long-term growth. This must be a continuous effort with constant evaluation and evolving measures to ensure maximum online safety for its customers." concluded Charoen Phosamritlert, Chief Executive Officer, KPMG in Thailand, Myanmar and Laos.
About KPMG International
KPMG is a global network of professional services firms providing Audit, Tax and Advisory services. We operate in 147 countries and territories and have more than 219,000 people working in member firms around the world. In Asia Pacific, KPMG operates in 20 countries and territories with more than 46,000 people in members firms in the region.
About KPMG in Thailand
KPMG in Thailand, with more than 1,900 professionals offering Audit and Assurance, Legal, Tax, and Advisory services, is a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.
Source: KPMG Thailand