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August 4, 2014

The Impact of Data Breaches On Customer Loyalty

Hacker financial data breach

According to a new study conducted by SafeNet Inc., data breaches severely affect whether customers will interact with businesses again.

The global research surveyed over 4,500 adults across 5 of the world’s largest economies – US, UK, Germany, Japan, and Australia.

It found that 65% of respondents would never, or were very unlikely to, shop or do business again with a company that had experienced a data breach where financial data (credit card information, bank account number, or associated login details) was stolen.

For adult respondents saying they would never, or were very unlikely to, shop or do business again with a company that had experienced a data breach where financial data was stolen, the breakdown by countries surveyed is as follows:

  • 54 % in the US
  • 68 % in the UK
  • 53 % in Germany
  • 82 % in Japan
  • 72 % in Australia

The research also indicated that only half of adults surveyed feel that companies take the protection and security of customer data seriously. This sentiment is likely to have been influenced by the high volume of data breaches in 2014.

A total of 237 data breaches occurred this year between April and June 2014, exposing more than 175 million records worldwide.

Learn how to protect your business from data breaches by reading this: How to Protect Your Business From a Data Breach

Full report here.

photo credit: Stian Eikeland via photopin cc

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