These two sentences encapsulate the impact of the article below:
“Look for data privacy and data protection to soon become the first differentiator in consumer and business buying decisions.”
“The fastest way to lose customers is to lose your grip on their data.”
Read and heed.
Emphasis in red added by me.
Brian Wood, VP Marketing
93% of financial services orgs had cyberattacks in the past year
According to a Kaspersky Lab and B2B International report (pdf) based on a survey of worldwide IT professionals, 93% of financial services organizations experienced various cyberthreats in the past 12 months. And while cyberattacks targeting financial services firms are increasing, nearly one out of three still don’t provide protection of users’ endpoints or implement specialized protection inside their own infrastructure. Such poses threats to banks beyond the financial loss to thieves–an overwhelming majority of bank customers are ready to bail.
Only 53% of businesses felt that financial organizations did enough to protect their information. The survey also found that 82% of businesses would consider leaving a financial institution that suffered a data breach and that 74% of companies choose a financial organization according to their security reputation. A separate consumer Kaspersky Lab survey found that 60% of consumers prefer companies that offer additional security measures to protect financial data.
“While it is encouraging that financial services organizations recognize the damage to their reputation that can result from a cyberattack, it is concerning that many firms have not taken the necessary steps to implement proper security,” said Ross Hogan, Global Head of the Fraud Prevention Division at Kaspersky Lab, in a statement to the press.
“We are seeing more and more cyberattacks targeting financial organizations and while many will take action to reimburse the financial losses as a result of cybercrime, the damage done to a financial organization’s reputation isn’t as easy to repair,” he added. “Based on these survey results, we expect to see more financial services organizations take the necessary steps to not only protect customer data and financial information, but to take the steps needed to ensure their important reputation remains intact.”
While it’s perfectly understandable that data responsibility and accountability would come home to roost on banks first, retailers are a close second. Consumers and businesses are quickly tiring of their data being stolen in big, store data breaches. Business shoppers stand to lose the most as business bank accounts do not have the same protections as consumer bank accounts.
Look for data privacy and data protection to soon become the first differentiator in consumer and business buying decisions. The fastest way to lose customers is to lose your grip on their data.