A new study finds that “Almost half (44%) of US consumers have suffered the negative consequences of a security breach or hack…”. The research done by PCI Pal implies that consumers do factor their data safety when it comes to their shopping habits.
“While security breaches are not new, US consumers’ attitudes towards them seem to be changing significantly – with the vast majority of Americans now reporting that trust in security practices (or lack thereof) influences not just where but also how, and how much they spend,” explained James Barham, COO at PCI Pal.
According to the study, 83% of consumers said they would stop doing business with any organization for months after a breach, with 21% saying they would stop permanently.
What does this information means for your business? It means that a single data breach can cripple your business. Whether your business is consumer-facing or business-to-business, your reputation is in jeopardy. On top of the costs of potential legal fees, investigations, and infrastructure improvements, the lost revenue can stop business growth.
The most important thing you can do for your business is to analyze all of your current vulnerabilities and develop a strategic cyber security plan that includes incident response. Even having a plan in place can help improve your reputation with consumers.
“Consumers reported that even being perceived as having lax security practices can be enough to incur spending penalties – almost half (45%) reported that they spend less with brands they perceive to have insecure data practices, while over a quarter (26%) say they stop spending completely if they don’t trust a company with their data.”