A survey of today's consumers found that 76 percent of respondents would likely take their business elsewhere due to negligent data handling practices.
New FireEye research also showed that 75 percent of consumers stated they were likely to stop purchasing from a company if a data breach was found to be linked to the board failing to prioritize cybersecurity.
The survey findings also highlight the potential long-term financial impact of data breaches on major brands, with 59 percent of consumers warning they would take legal action against companies if a data breach resulted in their personal details being used for criminal purposes. 72 percent of consumers also reported that they will now share fewer personal details with companies, which could hit the revenues of organizations—from social media platforms to search engines—that rely on collecting detailed consumer data for advertisers.
“Unfortunately, large cyberattacks and data breaches are becoming more commonly associated with brand names in the United States,” said Grady Summers, Senior Vice President and Chief Technology Officer at FireEye. “After major data breaches, organizations often attempt to regain customer trust through initiatives such as free monitoring or other compensation. But this research finds that, despite these efforts, the cost of the attacks—both financially and in damaged reputations—remain for long after the breach.
“As the results tell us, consumers are more aware and increasingly willing to protect their data—not only by sharing less personal information, but also by taking their business elsewhere,” Summers continues. “Brands must now realize that data protection is something customers have come to expect and investments in security can create a competitive advantage in today’s world of growing cyberattacks.”
Other findings include:
•52 percent of consumers would consider paying more for the same products or services from a provider with better data security
•54 percent of consumers feel more negatively of organizations breached
•78 percent of consumers are cautious of organizations’ abilities to keep data safe
•52 percent of consumers said security is an important or main consideration when buying products and services
•90 percent of consumers expect to be informed within 24 hours if their service provider had suffered a data breach which could have compromised their data.