Data breaches are one of the most reported cyberattacks against businesses—regardless of size and industry. And while this has highlighted cybersecurity gaps on so many fronts, some companies are still not prioritizing them as they should. Some have scrambled to be compliant but then find themselves successfully breached weeks or months after getting certified.
Unsurprisingly, many current and potential customers respond negatively to companies that have been breached. This is evident in the global consumer survey conducted by software company, Axway.
For many, a breach is treated as proof that companies are not doing what they’re supposed to with their data, and that is to primarily secure it at all cost, especially when businesses are placed high on their attack list. Companies saying that they take the security of their customers “very seriously” looks more like lip service than genuine concern over data security.
According to the survey, respondents are more comfortable with businesses in the financial (65 percent) and health (50 percent) sectors to protect their data. On the flip side, they are less confident entrusting their data to insurance companies (31 percent), retailers (26 percent), and educational institutions (31 percent).
When asked, “Would an online retailer’s lack of security for your private data prevent you from making a purchase through their website?”, 68 percent gave a resounding YES. This number is even higher—75 percent—when asked if they’d stop doing business with a company that has fallen victim to a breach or cyberattack that potentially compromised data. For companies with a history of cyberattacks or data breaches, 50 percent say they would not do any business with them.
While the numbers are stark and telling for any organization, only 12 percent of respondents said they would never engage with companies with such a history. It’s not completely bleak for breached companies though. It seems most survey takers—81 percent—would continue to use the brand provided that (a) the company has already addressed the issue that resulted in the breach or (b) consumers have done something on their end to help mitigate the problem, such as changing their login credentials.
“Security breaches and privacy concerns are another snag in the fabric that harms the frictionless experience people have come to expect,” said Brian Pagano, chief catalyst and VP at Axway, “In an increasingly connected world, we will continue to hear about security leaks. You can establish trust by giving consumers peace of mind about the back-end complexity thanks to secure solutions. And then, you can focus on the job of providing those brilliant new customer experiences.”