Here is a discussion on how a data breach can decrease consumer trust in a business
The aftermaths of a cyber attack and breach of private data come with a set of consequences. One such consequence is losing the customer’s trust and loyalty. Understandably, no one would want their data to be misused, nor do people want to be a part of any online scams. Trust plays an integral role in the decision to purchase a certain business.
What is the intensity of these breaches?
- The retail giant Target faced a security breach in 2013. In it, 110 million customers’ credit card details and other information was compromised.
- Another breach incident happened with the renowned Adobe software company, risking the data of 38 million users.
- In another instance. In 2018, Verizon’s security lost data that included 43,000 credentials of customers.
These are to name only a few companies, just in 2017, 69% of all cyber attacks for theft of identities. On average, a worth of a single identity is around $20. 1269 such incidents were reported.
What does it cost a business?
Above everything, the worst that an organization can face is a reputational loss. After that comes financial loss, legal matters, and several other unthinkable consequences. Many businesses try to invest in bribing hackers to give that data back. However, this doesn’t work most of the time.
Businesses are forced to shut down, and they lose their customers, their values. The customers no longer feel safe dealing with the company. In a report, it stated that 43% of people claimed that they stopped dealing with a company after a security breach incident that happened with them.
What impact does it have on a customer?
Customers have to deal with identity theft, fraudulent card activities, and account cancellations. Data breaches cause a roadblock between the relationship of a customer and businesses. Customers are likely to share very sensitive and private data with a business, and that comes with a lot of trust to give.
On most occasions, when a breach happens, businesses become hesitant to share the details with their customers. To customers, it feels that their data and concerns are being mishandled. Moreover, enterprises provide no transparency to the situation, and communications become poor.
The severity is that the customer loses lifetime value for the organization, especially if it is an eCommerce business. Another thing that is of serious concern is the stress that the customers undergo and the time it takes to overcome the situation.
What Can a Business Do in Such Situations?
Cybersecurity threats can be undefinable and unidentifiable in many cases. They come with a variety of risks. The prominent, expected risks can be identified and worked upon.
The protection of valuable information can begin with monitoring employees. Data management software should be used to regulate data movement and access. This way, it would be easier to identify miscellaneous actions.
Communication is another crucial aspect when it comes to top-notch cybersecurity. Employees must be trained about the intensity of data breaches, the causes, and the protective measures. They should be well aware of the consequences as well. Every member of the business has its own set of responsibilities for protecting the company’s information.
Expert advice is also essential. A cybersecurity expert would be able to identify the weaknesses of the security system of the company and work to protect it accordingly. It is ideal for protecting and preventing cyber-attacks and data breaches beforehand, rather regret and face the consequences later.
Get in touch with OutsourceMyIT to protect your company from upcoming security breaches. We are all about helping you keep safe.