Data leaks have become so common in recent years that it’s almost as if you’re bored of hearing about them. If anything, you might start to think that protecting consumer data isn’t as serious as it sounds. Can’t you sweep it under the carpet like all the other businesses?
There’s no doubt that it appears as if there aren’t many consequences for companies that don’t secure their customers’ personal information. However, while they may not be in your face, the side-effects are reflected in the following stats.
Continue reading to find out why you shouldn’t be lulled into a false sense of security.
SMEs Get Hit With Fraud Charges The Most
Money is power. You’d assume that bigger businesses would have an issue with white-collar crimes as they have more resources and more people who could steal. Unfortunately, it’s the small and medium-sized firms that need a top-rated criminal defense lawyer, according to crime statistics. As an SME, your risk of fraud is 6% higher at 28% compared to larger organizations at 22%. Fraud is something you should never gamble with as the government and IRS want their pound of flesh, so this reason alone should scare you into compliance.
Customers Aren’t Happy
Previously, it was easy to negate any questions relating to personal data. To be honest, most shoppers didn’t care about handing over their names or addresses as they didn’t understand its power. After the Cambridge Analytica scandal, consumers are well aware of how much their data means to businesses, and they’re unhappy about losing control. 46% of people believe their information is out of their hands today, while only 43% think they can protect it adequately. If your business adheres to the stereotype, your bounce rate will increase as shoppers look elsewhere for brands who invest in their online security.
And Say It’s Your Job To Do More
Another stat that reinforces how modern customers feel about the lack of control over their data is that 57% of consumers blame the company rather than the hacker. Considering that the hacker is the active party in the theft, this is a telling fact. You can’t blame anybody else since your audience won’t listen. They’ll lay the blame squarely at your feet for not doing enough to protect it initially, meaning businesses don’t have much leeway. To shoppers, the topic is pretty black and white.
Investing in Privacy Is a Must
97% of businesses experience a boost in benefits, such as stealing a march over the competition, merely from investing in better security protocols. Consumers not only want and expect extra effort on the part of the company, but the investment is cost-cutter. Data breach expenses are 95% higher than fees experienced by organizations with secure servers. So, spending the money on IT will encourage customers to stay loyal and put you in a position to save your resources. With more money, you can reduce your debt and soak up your competitors’ market share when a data breach leaves them vulnerable.
Do you see why data is critical to your business now?
PS Hope this was informational ?!