By Legal Futures’ Associates Hayes Connor Solicitors
Research carried out by customer experience specialist Genesys has revealed that 45% of consumers would stop using a company’s products or services following a data breach.
The survey, conducted amongst 5,000 consumers in the UK, America, New Zealand, Australia, Germany and Japan, also found that 92% of respondents were concerned about data protection.
Christine Sabino, senior associate at data breach and cybercrime specialist Hayes Connor Solicitors, said: “Unfortunately, few businesses realise the full impact of a data breach – both on their organisation’s bottom line, and on their customers when they fail to adequately protect personal information.
“Consumers are increasingly knowledgeable about their data protection rights and their entitlement to compensation following a breach. It is unsurprising that nearly half of consumers have stated that they would take their custom elsewhere if a business is found to have inadequate data protection measures in place.”
Richard Forrest, senior associate at data breach and cybercrime specialist Hayes Connor Solicitors, commented: “Failing to protect individuals’ private data can lead to significant financial and psychological consequences. The penalty for businesses can be hefty with a loss of consumer trust and a tarnished reputation leading to substantial financial losses as customers simply spend their money elsewhere.
“Organisations need to invest in mitigating the risks as the cost of not doing so, and particularly in the current climate, could pose a serious threat to the future of their business.
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