When it comes to ransomware and the effect it has on organizations, magazine headlines rave about the amount of data lost and encrypted, and the staggering ransom amounts that have been paid.
What goes unreported, from immediate sales losses to the long-term impact this has on consumer purchasing behavior and brand loyalty. At what point will consumers "churn" or abandon a product or service for a competitor? How do cyberattacks affect consumer trust in an organization?
New research has found that while most consumers are taking the necessary security precautions to protect their online accounts, businesses may not be doing enough to protect their information, driving sales to competitors who can.
A key insight: Most consumers doubt the security of their data
A survey of nearly 2,000 consumers across North America, the UK, France and Germany found that 70% believe companies are not doing enough to adequately secure their personal information and assume it latvia whatsapp data has been compromised without their knowledge. Despite extensive data privacy regulations, such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) , which aim to protect consumer data, organizations continue to suffer from cyberattacks resulting in data breaches, massive data loss, long-term downtime and exorbitant ransom payments.
Case in point: The hospitality and healthcare industries have been prime targets for cyberattacks, with cybercriminals exposing data ranging from personal and banking information to treatment records. For example, an attack on Marriott Hotels resulted in a four-year security breach that exposed the personal data of 500 million hotel guests. And when a Michigan healthcare organization fell victim to a phishing campaign, cybercriminals quietly accessed patient data for two and a half months.
Organizations clearly need a different approach to defending their systems and customers.
A key insight: Perceived trust influences consumer purchasing decisions
Today's competitive landscape offers an overwhelming number of options, so it doesn't help when a company loses the trust of its consumers due to a security incident. Consider this scenario: You're looking to open a new bank account and you learn that the bank you're considering fell victim to a cyberattack in which accounts were held hostage and customers were unable to access cash. You'll likely think twice about this bank - and you wouldn't be alone.
New research indicates that 59% of consumers would likely avoid doing business with an organization that has suffered a cyberattack in the past year. And, as consumers become more educated and cyberattacks become more well-known, perceived trust becomes more influential in their purchasing decisions, with the study also finding that nearly nine in ten consumers consider a business’s trustworthiness before purchasing a product or service.
These findings suggest that companies need to act quickly, especially given the rise of cybercriminals who are now publicizing breaches or dumping stolen data on public forums when ransom deadlines are not met.