Study: Data Breaches Break Consumer Trust
E-commerce sites that have not been diligent in protecting their consumer information from attacks may find their customer bases drop off as a result.
If you want to keep people visiting your site, you need to provide them with a secure environment and take steps to keep it that way. A study from Javelin Strategy showed that breached merchants will be hard-pressed to keep customers.
77 percent of Javelin’s respondents said they intend to stop shopping at sites that have experienced data breaches. It is a tossup as to whether or not people will blame a site for a breach, with roughly half of consumers fixing responsibility to the site. Either way, getting them back will be a tough prospect.
Having the benefit of perception as a solidly secure site will help a website’s business. The study found 85 percent of consumers would spend more at such online retailers.
“Consumer are jumpy, and have served notice that they will steer profits to companies they perceive as security leaders,” Javelin President and Founder James Van Dyke said in a statement.
Personal consumer information integrity matters a lot. Internet businesses, and credit card giants like Visa and Mastercard, have long feared government involvement in heavily dictating privacy practices and the expense that would come with them.
They may not have a choice. The recently disclosed TJX breach that exposed customer information to criminals, revealing at least 45 million debit/credit card numbers, along with the infamous CardSystems Solutions breach from 2005, may make such legislation likely, especially with a Democratic Congress on Capitol Hill.