How Consumers React To A Business Who’s Suffered A Data Breach
We’ve discussed before how data breaches lead to a loss in revenue for businesses. That’s not the only issues that stem from an exploit in a security vulnerability, however. At Dark Reading, Tim Wilson reports on a recent survey conducted by the Ponemon Institute that reveals how consumers react to a company’s data being compromised.
When it comes to a brand’s reputation, which influences how likely a consumer is to do business with that brand, there are three leading factors that have the greatest negative impact. Those factors are poor customer service, environmental disasters, like oil spills, and data breaches. That these are the most influential may not be that surprising until you realize what they beat out. Other factors that finished lower in the survey were publicized lawsuits, government fines and labor or union disputes.
It’s not surprising why consumers feel so strongly about avoiding businesses who have experienced a data breach. About a quarter of typical consumers are extremely concerned about being the victim of identity theft. That jumps to about half of consumers who are customers of a company who has experienced a data breach and many of those believe their identity and personal information will be at risk for years to come, or even for the rest of their lives. For these individuals, it’s better to sever ties with a company they’ve done business with for years than to risk their information falling into the wrong hands.
This report contains a clear message for businesses. A loss of customers is inevitable should you suffer an attack that results in the theft or exposure of important data. That’s why it’s important to invest in security now before a successful, and costly, attack occurs. The reality is that many small to medium businesses fail to ever recover from a severe attack. A lacking security infrastructure could actually lead to the loss of a business.
For help improving the security at your company, call Geek Rescue at 918-369-4335.May 16th, 2014