Consumers are becoming more and more aware of the fact that their own cybersecurity is at risk if a company possessing their private data falls victim to a cyberattack.
Cybersecurity is nowadays a relevant topic for economies all over the globe. The increased access to the internet, together with the processes of digitization of economic activities, have been the major milestones in the development. Activities involving cybercrime are a constant threat to e-commerce technologies and influence how consumers perform their transactions online, according to International Journal of Cybercriminology.
Customers are willing to walk away
One major impact of enterprises falling victims to cyberattacks is that customers may start mistrusting their brand, which could result in them turning their back on it, reporting NI Business info.
PricewaterhouseCoopers (PwC), an audit assurance and audit company working with cybersecurity, reported 2021 in a study that 69% of consumers surveyed believed that the companies they rely on are vulnerable enough to fall victims to a cyberattack. The same survey found that 87% of consumers are willing to walk away from a business if a data breach occurs, since they do not want their private data to be copied, transmitted, viewed, stolen or misused.
Consumers are becoming more and more aware of the fact that their own cybersecurity is at risk if a company possessing their private data falls victim to a cyberattack. Stolen data often gives criminals the necessary information needed to perform phishing attacks and other threats against them. This is especially critical in the financial services sector and very concerning if it affects the health care system.
Damage of reputation
A Forbes Insight report in 2017 determined that 46% of organizations had suffered reputational damage as a result of a data breach. In order to avoid this, it is important for organizations to protect their network from malicious actors and maintain a good relationship with consumers. Even after only a one-time breach, companies could lose a great percentage of customers who would switch to a rival company, reporting PwC.
Gabriel Friedlander, founder of security awareness training firm Wizer, says that small and medium sized businesses (SMB) are worst affected by bad reputations due to cyberattacks. In an interview with IT Pro in 2019 he expressed seeing a 60% failure rate among the SMB market 6-12 months after a company disclosed a breach. He meant that organization and businesses can highly benefit from allocating more resources to cybersecurity and by this, be able to better protect their reputation and image along with their customers.
Customers prioritize data safety
A consumer review from Deloitte in 2019 suggests that consumers prefer choosing a company that keeps their data safe rather than a company which charges a lower price. The review also states that since 2013 there is a significant increase in the proportion of people having experienced some type of security breach.
Since cyberattacks are constantly increasing all over the globe, consumers are getting more conscious about their data, how it is used, stored and protected. At the same time, private data is becoming an important tool for businesses and organizations. They are increasingly relying on customers private data for their daily operations, in order to sell products, perform marketing and understand customer needs, something which makes them more vulnerable to cyber-attacks. This type of environment emphasizes the importance of cybersecurity and must be taken in consideration by businesses, reporting The Telegraph.