97% of Australians believe it is a misuse of their personal information when it is collected for one reason and used for another, while a significant portion of Australians (29%) went straight to the business responsible for a suspected data breach – an increase from 13% 2007.

The 2013 Community Attitudes to Privacy survey from the Office of the Australian Information Commissioner (OAIC) was sponsored by Commonwealth Bank of Australia, Henry Davis York and McAfee, and saw 1000 individuals interviewed.

Last conducted in 2007, the longitudinal study explored the changing attitudes of Australians on the use of their personal information.

Joel Camissar, Data Loss Prevention and Privacy Lead at McAfee Asia Pacific, said the research shows that Australian consumers are becoming more privacy savvy and aware, and are placing more value on their digital footprint.

“What this tells us is these changing attitudes are a timely wakeup call for businesses in the lead up to the enforcement of changes to the Australian Privacy Act in March next year," he said.

“The research findings have significant ramifications for Australian businesses keen to secure customer loyalty, and suggest the need for organisations to effectively communicate the measures they take to protect their customers’ valuable personal information."

Released at a launch event hosted by Australian Privacy Commissioner Timothy Pilgrim, and discussed in Sydney today, the OAIC Community Attitudes to Privacy survey also revealed:

• 90% of Australians are concerned about organisations sending their personal data overseas
• Over three quarters (78%) of Australians are unhappy or uncomfortable with organisations monitoring and storing their online activity for later use.
• Half of Australians do not read privacy policies because they are either too long, too complicated or too boring
• 25% of Australians also indicated they were reluctant to share their personal information in order to protect their privacy

“With trust such a key element in the customer service relationship, there is a competitive advantage for businesses who take the lead in being transparent in how they handle and protect their customers' personal information,” Camissar said.

“It is clear that businesses who take consumer privacy seriously moving forward will benefit by aligning their business processes to customer expectations."

Camissar recommended five ways Australian businesses can improve their management of customer privacy:

1. Develop and implement a comprehensive and easy to understand privacy policy and ensure strong policies for managing data
2. Perform a Privacy Impact Assessment (PIA) on how customer information is handled
3. Review technology controls to prevent data breaches
4. Thoroughly educate employees and create a culture of privacy protection
5. Create a dedicated privacy role within the company and review the amendments to the Privacy Act (found at oaic.gov.au) and determine the impact to the organisation

Australian Privacy Commissioner, Timothy Pilgrim said “Data breaches most often occur due to poor or inadequate security measures. With only five months to go until the changes to the Privacy Act take effect, businesses need to reinforce to their employees the company’s responsibility for protecting customer details and also ensure that their security technology is robust.”

Privacy issues have been under the magnifying glass recently due to the 'NSA-gate' scandal engulfing the US, which is still making headlines across the world.