Survey shows consumers are abandoning brands after Data Breaches

Three-quarters of consumers would stop engaging with a brand online following a breach and half would not sign up for an online service that had recently been breached, a new survey shows. The Ping Identity survey reveals many consumers are making drastic changes to the ways they interact with companies and secure their own personal data following a breach: 78 percent of respondents would stop engaging with a brand online and more than one third (36 percent) would stop engaging altogether if the brand had experienced a breach.

Nearly half (49 percent) would not sign up and use an online service or application that recently experienced a data breach.

Almost half (47 percent) have made changes to the way they secure their personal data as a result of recent breaches and over half (54 percent) are more concerned with protecting their personal information today than they were a year ago.

“With the prevalence of data breaches and leaks, enterprises must have the proper controls in place or they become at risk of losing consumer trust and business,” said Sarah Squire, CTO Office, Ping Identity. “In the same way that brands are expected to provide user-friendly experiences, they also must understand the value and importance of strong identity management strategies.”

Added Squire, “The findings from our 2018 survey reveal the extent to which consumers value security and rely on the brands they interact with to provide a layer of protection when it comes to their identity and personal information.”

Ping found the greatest discrepancies in security sentiment and practices between those under 35 and those over 55. While the younger generation has greater confidence in brands’ ability to protect their personal information and is more likely to spend more to ensure their personal information is protected, the older group guards their sensitive information more carefully and is less likely to have experienced financial loss as a result of a data breach.
53 percent of respondents under 35 feel confident or very confident in online services and applications providers’ ability to protect their personal information, compared with 27 percent of those over 55.
54 percent of respondents under 35 are willing to input their bank information on a website or application, compared with 41 percent of those over 55.
37 percent of respondents under 35 are not willing to pay anything to ensure their personal information is never breached, compared with 62 percent of those over 55