Data breaches ‘likely’ to affect consumer loyalty

Consumers are reluctant to continue shopping with a business that has experienced a data breach, according to a new global survey by Gemalto.

This is particularly the case where financial information is stolen, with nearly two-thirds (64%) of respondents stating this to be a decisive factor in reevaluating their relationship with a brand.

The theft of personal information was also cited as reason for knocking consumer trust in an enterprise, with close to half (49%) stating that in such an event they are unlikely to continue with the affected organization.

Many of the individuals taking part in the poll expressed concern over the way in which organizations approach cybersecurity, especially when it comes to securing their data.

Most felt that businesses do not consider it a priority. Only 25% feel that this matter was treated with seriousness.

This is also reflected in employee perception, with only two-fifths (38%) of employed respondents confident that their employers are focused on protecting consumer data.

“The media coverage of massive data breaches has done little to instil consumers’ confidence in how well companies, big and small, are protecting their data,” commented Jason Hart, vice president and chief technology officer for data protection at Gemalto.

“The fact that employees don’t even feel that their employers are taking the protection of their personal data security very seriously rings alarm bells.

“Either companies need to increase their security measures or, assuming that they already have these in place, they need to communicate this to their customers.”

Some of the apprehensions aired by consumers are framed by their personal experience of a data breach, with 31% confirming that they have been compromised in the past.

News of this comes on the back of a new survey from Manpower, which suggests that businesses are in fact beginning to respect the threat posed by cyberattacks.

This has resulted in a boost to the security industry, with major enterprises keen to pay above and beyond for cyber professionals to help them bolster their network defences.

Author , We Live Security

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