Companies that suffer a data breach can expect their customers to abandon them. They can also expect new customers to think twice before registering for a service or giving away any kind of personal or private data.
This is according to Ping Identity, whose latest report says consumers are making ‘drastic changes’ to how they interact with brands online, and how they safeguard their personal data after a breach.
Based on a poll of 3,000 people in the UK, US, France and Germany, the report says many would stop engaging with a brand after a data breach, while others wouldn’t even sign up. Half have changed the way they secure data, and are more concerned today than they were a year ago.
“The findings from our 2018 survey reveal the extent to which consumers value security and rely on the brands they interact with to provide a layer of protection when it comes to their identity and personal information,” said Sarah Squire, CTO Office at Ping Identity.
But we can’t place all consumers in the same basket. Those 35 and younger have more confidence in brands and their ability to safeguard data. The older generation, 55 and above, guards their data more carefully and is less likely to lose money due to a data breach.
Location also plays a part. Americans are more carefree with their data, while the British are least likely to experience a data breach.
“While consumers clearly place a high value on security, the data also shows that there are limits to how much effort they are going to make or how much they are willing to pay for it,” shared Garrett Bekker, Principal Security Analyst, 451 Research. “This suggests that the burden should fall on vendors and service providers to offer a secure online experience—and rightly so. Consumers don’t go into a restaurant and expect to pay more to ensure they don’t get sick. And if consumers don’t feel secure, the data highlights the cost to vendors in terms of lost customers.”
The full report can be found here.
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