Data breaches risk customer loyalty, survey reveals » SMEInsider

Data breaches risk customer loyalty, survey reveals

Businesses’ need to heed warnings from the latest research that some 63% of consumers expect to be told of a data breach within a few hours of a strike.

That’s the message from YouGov research commissioned by credit information provider, Equifax, which highlights the negative impact a data breach can have on a brand’s reputation and customer loyalty.

Over half (57%) of those surveyed said they would expect a free monitoring service set up to alert them if their financial information is misused.  The research also revealed that 61% would be unlikely to purchase goods or services from a UK company if it had suffered a breach in the past.

“Fast, positive action is crucial for companies keen to protect their reputation and regain customer trust, after a breach,” explained Lisa Hardstaff, identity fraud expert at Equifax Protect – a service which can be set up within three business days to support customers who may have been affected by a data breach.

“Equifax Protect can form part of a company’s strategy to prepare for and respond to a breach, as well helping them to meet regulatory guidelines. In addition, Equifax’s ready-made monitoring solution helps businesses to manage their reputation, as well as provide peace of mind to their customers.”

Earlier this year, both Netflix and Facebook faced customer data breach issues.

Equifax says its product enables businesses affected by a breach to offer their customers a range of tools so that they can react fast and take appropriate action to reduce the risk of fraud.

And swift access to their own credit information will help consumers check if they have already been targeted by fraudsters. On-going monitoring tools will alert them to key changes to their credit information, which could be another sign of fraud, says the credit check provider.