Executive Briefings

Shoppers Abandon Retailers Who Sustain Data Breaches, Report Claims

U.S. shoppers are likely to change their shopping habits if their favorite retailer experienced a data breach, according to a report by Vormetric and Wakefield, which specialize in data security solutions.

Roughly 85 percent of shoppers said they would alter where they shopped if a favored merchant had a breach. Close to 67 percent of shoppers would take their business elsewhere if their favorite retailers exposed a checking account to theft or fraud, and 62 percent would do so if unauthorized charges appeared on their credit card. The leak of personal information would cause 57 percent to switch stores and 54 percent would do so if their credit score was damaged.

Two years have passed since Target's massive data breach, but shoppers are still keenly aware of potential threats. And retailers are still vulnerable - 51 percent of retailers reported being very or extremely vulnerable to insider threats, the highest rates measured in the study.

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Roughly 85 percent of shoppers said they would alter where they shopped if a favored merchant had a breach. Close to 67 percent of shoppers would take their business elsewhere if their favorite retailers exposed a checking account to theft or fraud, and 62 percent would do so if unauthorized charges appeared on their credit card. The leak of personal information would cause 57 percent to switch stores and 54 percent would do so if their credit score was damaged.

Two years have passed since Target's massive data breach, but shoppers are still keenly aware of potential threats. And retailers are still vulnerable - 51 percent of retailers reported being very or extremely vulnerable to insider threats, the highest rates measured in the study.

Read Full Article