Ignore Security, Lose Revenue – Data Breaches Impact The Bottom Line

A new study scheduled to be released at Infosecurity Europe 2014 claims that consumers avoid doing business with companies after a breach.  Data collected from across financial services, healthcare providers, and retailers shows that consumers make buying decisions based on how well brands protect their data.

According to the study “organizations stand to have significantly increased expenses and lose up to one-third of its customer/patient base after a data breach”:

  • 33 percent of consumers will shop elsewhere if their retailer of choice is breached
  • 30 percent of patients will find new healthcare provider if hospital/doctor’s office is breached
  • 24 percent of consumers will switch bank/credit card provider if institution is breached.

Will revenue losses finally move cybersecurity discussions to the board room?  A recent CFO.com reportpoints out that issues like the Heartbleed Vulnerability and government surveilance are finally grabbing their attention.

More on this study from Help Net Security.

The full results will be available after the conference and were collected by Javelin Strategy & Research.