Consumers Say They Would Stop Doing Business with Companies Following a Data Breach

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According to the latest marketing news, a company surveyed over 10,000 consumers in 11 countries who currently use online or mobile banking, social media or online retail accounts. The digital security firm named Gemalto found out in their research that majority of consumers would stop doing business with a company once it experienced data breach.

According to the report, 70% participants stated they would end their relationship with a business if it experienced a serious data breach and a 69% of consumers felt that businesses are not taking the task of securing consumer data seriously enough.

According to the latest marketing news, Consumers to Stop Doing Business after Data Breach

Gemalto discovered that the problem was not only with the companies but the consumers also were not taking the necessary measures to secure themselves. 56% of consumers used the same passwords for multiple accounts and 41% of participants did not take advantage of two-factor authentication services offered by companies.

However the main underlying problem of the issue is confusion over which party is responsible for securing data. 62% consumers believed that it is the company’s responsibility, which means that businesses are required to take additional steps to protect their consumers.

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This survey also showed that retail brands were the most at risk of losing consumers following a data breach, with about 61% saying they would no longer continue doing business with them. This was followed by banks at 59% and social media site 58%. 93% also stated that they would consider pursuing legal action against the company that suffered the breach.

Jason Hart the CTO, Identity and Data Protection at Gemalto said “Consumers are evidently happy to relinquish the responsibility of protecting their data to a business, but are expecting it to be kept secure without any effort on their part.”

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