So concerned are consumers about the security of their personal data, they’re willing to pay a premium to ensure vendors are adequately protecting their confidential information, a new report from ThreatX, an API and application security provider said.
Data Breach Impacts Brand
According to ThreatX, 60% of U.S. consumers are less likely to work with a brand that has suffered a data breach. In addition, only 10% of consumers reported feeling protected by vendors and 21% said they would switch to a competing brand following a vendor data breach.
ThreatX surveyed 1,000 consumers about the impact data breaches have had on their lives to highlight consumers’ evolving concerns around data security. A full 60% said they would pay a premium for data security.
Commenting on the survey, Gene Fay, ThreatX chief executive, said:
“Consumers are more vigilant than ever about protecting their data and they’re now demanding more from the vendors they work with. For businesses, the ability to uncover and track suspicious API and application behavior in real time is the key to a good cyber defense, strong consumer loyalty, and an overall competitive differentiator.”
More Findings from the Report
Additional findings from the report reveal:
- More than half of Millennials and Gen Z consumers said they are very likely to switch to a competing vendor following a cyberattack or data breach, compared to only 38% of Boomers and Gen Xers.
- Millennials and Gen Z consumers are twice as willing (58%) to pay a premium for better security than Boomers and Gen Xers (29%).
- 40% of consumers ranked financial burden as a top concern for them following a vendor data breach amid the ongoing recession.
- When asked to rank what they valued most from brands, 30% of consumers surveyed said transparent communication around a vendor’s security practice the most, followed by the measures taken in response to a data breach (20%) and a vendor’s action plan to previous data breaches (18%).
- 48% of consumers confirmed their data has been left vulnerable following a data breach due to an organization’s lack of protection.
- 90% are concerned a lack of protection will negatively impact their lives.