Over 83% factory-reset their phones before resale, yet data security concerns persist: Cashify survey

3 min readNew DelhiJun 18, 2026 05:18 PM IST

Cashify’s survey shows that while smartphone re-selling is becoming mainstream, consumer anxiety over data security is also rising. (File Photo)

The market for pre-owned smartphones has grown rapidly in India, with the re-selling devices becoming more common. However, many consumers remain concerned that their sensitive personal data could be recovered from a re-sold device even after taking precautionary measures such as factory resetting. A new survey report suggests that these concerns could be well-founded.

Over 83.3 per cent of respondents said that they performed a factory reset of their smartphone before resale. However, 31 per cent reported successfully retrieving deleted data from a phone, according to a consumer survey published by Cashify, an Indian re-commerce platform, on Thursday, June 18.

The survey of 8,000 respondents is focused on smartphone resale and data privacy. It found that over 41.1 per cent of respondents acknowledge that a factory reset may not permanently delete all data. Furthermore, 74 per cent are concerned about potential misuse of personal data after selling their smartphone.

The findings of Cashify’s latest consumer survey highlight how data security has become a critical trust issue in India’s growing resale market. It comes at a time of rising participation in smartphone resale, with 56.6 per cent of respondents stating they have sold or exchanged a device.

“Devices today carry years of personal, financial, and identity data. As resale volumes scale, data safety cannot remain an individual burden. It needs to be treated as a default responsibility of organised platforms and the systems that enable re-commerce, supported by clear policy frameworks,” said Nakul Kumar, co-founder, Cashify.

“Basic deletion practices are widely adopted, but confidence remains limited because commonly used methods do not guarantee complete erasure. As awareness of data recovery risks increases, uncertainty around the adequacy of informal or incomplete safeguards continues to shape consumer perception,” the survey report further said.

Other key findings

Cashify’s survey shows that while smartphone re-selling is becoming mainstream, consumer anxiety over data security is also rising. Over 45.3 per cent of respondents said that they consider data privacy and security as the most important factor when choosing where to sell their smartphone. Another 29.5 per cent ranked price as the most important factor.

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68.6 per cent said that they would trust a resale platform more if it offered certified secure data deletion, while 83.3 per cent said a data deletion certificate is very important when selling their smartphone, according to Cashify.

Respondents also signalled expectations from the broader ecosystem, with 87.2 per cent calling for stricter laws on data deletion before smartphones are resold.