A recent study has found that one-fifth of customers will walk away from a retailer if a breach occurs.
The 2016 KPMG Consumer Loss Barometer, while surveying 448 consumers, found that 19 percent said they would stop shopping at a retailer that had been a victim of a cybersecurity hack, even if the company took the necessary steps to remediate the issue.
33 percent of the consumers indicated that fears of further exposure of their personal information would prevent them from shopping at a breached retailer for at least three months.
When asked which factors most likely contribute to a customer not returning – or delaying a return – to the store, consumers surveyed cited a lack of a solid plan to prevent further attacks as a top factor, according to the study, according to the study.
KPMG also conducted a survey of 100 retail senior cybersecurity executives distributed evenly between chief information officer (CIO – 25 percent), chief information security officer (25 percent), chief security officer (25 percent), and chief technology officer (CTO – 25 percent).
Fifty-five percent say that they haven’t invested capital funds in cybersecurity protection in the past 12 months – placing the industry third out of the four industries featured in the report. Additionally, 42 percent state that their company does not have a leader who is responsible for information security – again placing the industry third out of the four industries in the report.
“Quite frankly, many retailers are not doing enough to protect their businesses from cyber-attacks or react to them when they occur, and the effects of their inaction will end up harming them in the long run,” said Tony Buffomante, Principal and Retail Cyber Security Leader for KPMG.
“If retailers pay more attention to the issue of cybersecurity and are more transparent with their customers on their awareness, it could serve as a key business differentiator,” he added.
