Several months ago Cyber Talk reported on a study by analyst firm Frost and Sullivan, which found that businesses that endure major data breaches lose half their customers. Now, a new study by a different firm has uncovered similar findings.
TechRepublic reports that results from a survey conducted by Ping Identity reveal that in the aftermath of a data breach, nearly 80 percent of consumers said their online engagement with the targeted company would cease. And, close to 40 percent would cut ties with the brand altogether.
Ping Identity surveyed more than 3,000 consumers in the United States, United Kingdom, France, and Germany. The clear takeaway, as TechRepublic sums it up, “Security breaches not only infringe on the consumer’s personal information but also their trust with the breached company.”
Other key findings from the report indicate that nearly half of those surveyed would stay away from a service or application that suffered a recent data breach. Only 37 percent said they would be willing to engage with a breached online service–but only if there were no other alternative available.
With new legislation popping up and mounting pressure from consumers, businesses are being pressed to take cybersecurity more seriously. Customer attrition and brand tarnish can’t really be fixed with cyberinsurance.
Get the full story at TechRepublic.