Customers want companies to do a better job of keeping their personal information secure, with a recent survey finding 33 percent of customers would shop elsewhere following a major data breach. Companies want to maximize sales and profit, but aren't doing enough to try and keep customers secure, including credit and debit card information, phone numbers, email addresses, and other personal data.
"Once thought to be a theoretical consequence, new evidence clearly shows consumers become less apt to open their wallets and patronize a company after a data breach," according to the study from Identity Finder. "In addition to potential lost business and goodwill, a breached company may find itself saddled with the cost of litigation and subsidizing identity protection services for affected customers."
Following a major data breach suffered by Target last year, in which company executives reportedly knew about a possible security issue, the popular retailer found customer approval suffered "meaningful decreases."