Data Breaches Could Negatively Impact Online Holiday Sales

Three-quarters of consumers would end their relationship with a brand following a data breach, and half wouldn’t sign up for an online service that had recently been breached, according to data released Wednesday.

Ping Identity, a security firm, released the findings from its 2018 Consumer Survey: Attitudes and Behavior in a Post-Breach Era. The survey analyzes responses from 3,000 people across the United States, United Kingdom, France and Germany to find out what they expect from brands when it comes to the safekeeping of personal information. The study found that consumers are making changes to the way they secure their personal data.

Some 78% said they would stop engaging with a brand online and 36% would stop engaging altogether if the brand had experienced a breach.

About 49% would not sign up and use an online service or application that recently experienced a data breach, and 47% said they have made changes to the way they secure their personal data as a result of recent breaches. About 54% are more concerned with protecting personal data, now than they were a year ago.

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This is with good reason. As U.S. voters took to the polls on Tuesday, HSBC Bank USA revealed a data breach that exposed names, account numbers, birthdates, account balances, and other information like transaction history from an undisclosed number of accounts.

HSBC Bank USA, a subsidiary of the UK-based HSBC Bank, states that it became aware of online accounts being accessed by unauthorized users between October 4, 2018 and October 14. The bank reported that only 1% of accounts were accessed.

Tripwire's The State of Security Associate Editor David Bisson reports the California Attorney General's Office received a copy of the letter sent to bank customers. The letter, dated November 2, came with an apology for this “inconvenience.”  

Do a search on the term “data breach” to find a long list of companies that recoded unauthorized access to customer accounts.

Radisson Hotels also reported a data breach found on October 1. The hotel chain is warning its Radisson Rewards members to look for suspicious behavior on their accounts following a data breach that compromised some member information. Hackers gained access to email addresses, member names and addresses, and phone numbers, along with any frequent flyer numbers on file.

The athletic brand Under Armour also revealed a data breach earlier this year. The company believes approximately 150 million MyFitnessPal app accounts globally were affected.

 

 

 

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