In the UK, 44% of consumers claim they will stop spending with a business for several months in the immediate aftermath of a security breach? And 41% of consumers claim they will never return to a business post-breach?
This could cause huge revenue losses for companies (Research by PCI Pal)
Consumers are beginning to realise that they too could fall victim of data breaches. With the rise of cybercrime, more people than ever before are being affected by weak data privacy policies in place with companies.
So people are holding organisations to account more than ever before. l
In America, a staggering 83% of consumers claim they will stop spending with a business for several months in the immediate aftermath of a security breach, and over a fifth of consumers claim they will never return to a business after a breach.
Australia
The story is similar in Australia, where 43% of consumers claim they will stop spending with a business for several months in the immediate aftermath of a security breach. Another 43% of consumers claim they will never do business again with a company after a data breach.
The picture is bleaker in Canada, where 58% of consumers claim they will stop spending with a business for several months in the immediate aftermath of a security breach. That means a fifth of consumers claim they won’t return to an organisation after a data breach.
These shocking statistics show the huge potential revenue loss that many businesses may not be able to recover from after a data breach.
It’s very clear that damage to an organisations reputation is just as bad as any financial loss.
The recent headline-grabbing fines of big companies such as British Airways and Marriott have fuelled the fear and distrust consumers have after personal details put at risk.
GDPR
The various data protection companies across the world – such as Europe’s GDPR (General Data Protection Regulation), the California Consumer Privacy Act (CCPA), Canada’s Personal Information Protection and Electronic Documents Act and Australia’s Consumer Data Right have made security and data protection of prime importance for consumers globally.
In particular, consumers in every region expressed concerns about having to read their credit card information over the phone – and then, only with people they trust.
In the UK, 55% of consumers are uncomfortable reading their credit card information over the phone and 44% of consumers are only comfortable sharing information over the phone to certain organisations they felt they trusted enough to do so.
Over 40% of consumers in America said they were uncomfortable reading their credit card information over the phone and 58% of consumers said they were only comfortable sharing information over to specific companies.
In Australia, 49% of consumers are uncomfortable reading their credit card information over the phone, with 43% only choosing specific ones. Meanwhile, 42% of Canadian consumers said they were uncomfortable reading their credit card information over the phone and 58% would only share information with trusted companies.
Consumers were also selective in the specific industry sectors they said they felt comfortable sharing personal data with.
Retail and travel industries fared the worst, with 40% and 35% of UK consumers, 50% and 40% of Australian consumers, 65% and 41% of Canadian consumers and 19% and 16.4% of US consumers rating these sectors as the worst when it comes to security practices.
“With the ongoing introduction of new data privacy regulations around the world, companies face significant fines in the event of a breach,” said James Barham, CEO at PCI Pal.
“Our research however shows they may face an even bigger financial consequence in the aftermath of a breach, with the loss of customer loyalty and trust. To avoid such implications, companies should adequately prepare themselves for the increasing likelihood that a data breach will inevitably occur.”
