66 Percent of U.S. Adults Say They’re Likely to Stop Doing Business with a Breached Company

According to the results of a recent Centrify survey of 2,400 adults in the U.S., U.K. and Germany, 66 percent of adults in the U.S. and 75 percent of adults in the U.K. are at least somewhat likely to stop doing business with a company that has suffered a data breach.

Twenty-one percent of U.S. respondents said they’re very likely to do so.

About two thirds of all respondents rated corporations as a nine or a 10 on a 10-point scale in terms of how responsible they should be for preventing hacks and securing personal information.

And while three quarters of all respondents said it’s probably or definitely normal and expected for businesses and large organizations to be hacked, 50 percent of U.K. respondents, 41 percent in the U.S., and 38 percent in Germany said corporations aren’t taking enough responsibility when they do get hacked.

When asked what industries handle security issues best, financial institutions and medical organizations led the pack. Membership and hospitality businesses were seen as the worst at handling security issues.

About half of U.S. respondents, one third in the U.K. and one quarter in Germany have been notified by companies of a hack. In response, 61 percent in the U.S. said they had been advised by the hacked organization to monitor their bank accounts and 59 percent were asked to change their passwords.

“The study clearly points to the need for organizations to dramatically bolster their security systems and do everything in their power to protect consumer information and prevent a breach,” Centrify CEO Tom Kemp said in a statement.

“When companies put customer data at risk they are really putting their entire business at risk,” Kemp added. “Consumers simply will not tolerate doing business with hacked organizations. It’s time for organizations to take full responsibility for their security and put the proper measures in place once and for all.”

Separately, a Trend Micro survey of 100 senior decision makers in the U.K. found that almost a fifth of companies don’t tell their companies when their data has been breached, IT Pro reports.

And while 74 percent of respondents think they’re sufficiently protecting their customers, 83 percent said they’ve had to rethink their security strategy following a data breach.

“Already almost half of consumers (49 percent) are unaware that their data can be shared with third parties and in many instances they need to opt out to prevent it from being passed on,” Trend Micro global vice president of security research Rik Ferguson said in a statement. “Having little visibility into where their data goes, and how secure that data is, spells real trouble.”

“Unfortunately, for many organisations the decision on whether to notify customers or keep a breach under wraps still comes down to a simple risk management calculation,” Ferguson added. “Many still fail to deliver on their duty of care in hope of avoiding sanctions, brand damage and any potential customer payouts.”

A recent eSecurity Planet article offered 10 tips to mitigate data breaches.

Jeff Goldman
Jeff Goldman has been a technology journalist for more than 20 years and an eSecurity Planet contributor since 2009.

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