When we talk about ransomware and its consequences on organizations, headlines focus on the amount of data lost or encrypted, or the impressive ransoms paid.
What is often not reported is the immediate volume of lost sales or the long-term impact on customer purchasing behavior and brand loyalty. When will customers “churn” or choose a competitor’s products or services? How do cyberattacks affect consumer trust in an organization?
According to recent research findings, while most consumers are taking necessary security measures to protect their online accounts, businesses are not doing enough when it comes to protecting their data, which is unintentionally increasing the revenues of companies that do.
Key statistic: Most consumers don't believe their data is secure
A survey of nearly 2,000 consumers in North America, the UK, France and Germany found that 70% of respondents believe companies are not doing enough to adequately safeguard their personal latvia whatsapp data information, and assume their data is exposed without their knowledge. Despite strong data privacy regulations, such as the California Consumer Privacy Act (CCPA) , aimed at protecting consumer data, businesses continue to experience cyberattacks that lead to data breaches, massive losses, lengthy downtime and exorbitant ransom payments.
Let's look at a case in point. The hospitality and healthcare industries have been favorite targets for cyber attackers, who have exposed user data such as personal and banking information as well as medical records. For example, an attack on the Marriott hotel chain resulted in a security breach that exposed the personal data of 500 million guests over a four-year period. Also, when a Michigan healthcare organization fell victim to a phishing campaign, cyber attackers were able to silently access patient data for over two months.
Clearly, companies need to take a different approach to defending their systems and their customers.
Key statistic: Perception of trust influences consumer purchasing decisions
Today's competitive landscape offers an overwhelming number of options, which doesn't help businesses that lose the trust of their consumers due to a security incident. Think about this situation: you want to open a new bank account and you discover that the option you are considering has been the victim of a cyber attack, with customers' accounts being held, leaving them unable to access their money. You will surely have doubts, and you will not be the only one.