"A majority of companies we surveyed indicate they have already or are very likely to lose customers and business partners, receive negative publicity and face serious financial consequences due to a data breach," said Michael Bruemmer, VP at Experian Data Breach Resolution. "Yet, despite understanding the consequences, many companies struggle to take the right steps to mitigate the fallout following an incident, demonstrating a need for better awareness and investment in the tools that can alleviate negative customer perceptions."
Companies that suffer data breaches experience significant costs and business disruption, including the loss of business and trust from customers, negative media attention and legal action.
- Seventy-six percent of privacy professionals say their organization already had or expects to have a material data breach that results in the loss of customers and business partners.
- Similarly, 75 percent say they have had or expect to have such an incident that results in negative public opinion and media coverage.
- Sixty-six percent of companies have or believe they will suffer serious financial consequences as a result of an incident.
- Despite experiencing a breach, not all companies prepare for a future breach.
- A majority of organizations surveyed don't provide clear communication and notification to victims following an incident.
- Organizations are missing security technology safeguards and tools to prevent or understand the extent of an incident.
The complete report is available here (registration required).