Retail, finance sectors face consumer shift over cyber threats

A recent survey by Cyberint, a leading action-oriented intelligence solution, has brought to light the customer perceptions regarding cybersecurity threats in the finance and retail sectors. The survey, titled "Security Matters: Consumer Views On Cybersecurity in Retail & Finance 2024", provided insights from more than 1,000 respondents.

The survey's data uncovered that most customers are unrelenting when their preferred brands suffer from data breaches. An overwhelming 82% suggested they would cease using a particular app following a breach. However, the same section of consumers did also indicate a willingness to consider protective measures if offered the opportunity.

The retail and finance sectors, being prime targets for cyber attacks, have seen an increase in the frequency and sophistication of these onslaughts. Cyberint's study emphasises the significance of cyber defense in preventing financial losses, as well as in preserving a brand's reputation. On average, a data breach costs the finance sector around $5.85 million, whilst nearly one fifth of retailers have been victims of an attack. The survey underscores the importance of a proactive approach to cybersecurity to safeguard customer data and mitigate threats, presenting a challenge and an opportunity for businesses.

A closer look at the survey's key findings include over 60% of consumers will stop shopping at retailers who suffer a data breach. A greater proportion (74%) of higher-income parties are also likely to stop shopping with a retailer post-data breach. Nearly 80% of the respondents felt that retailers should compensate customers following a data breach. A significant 81% would consider extra security measures if provided by a retailer. And, about 82% would abandon finance apps if their personal information were leaked. To top it all, strong encryption of data (65%) and two-factor authentication (68%) play a crucial role for customers when choosing finance apps.

Regarding data breach notifications, 62% of respondents preferred direct emails. The survey's findings highlight the integral role that cybersecurity plays in consumer trust and behaviour, especially in the finance and retail sectors. Businesses are therefore encouraged to prioritise investments in robust security systems, more transparent communication channels, and take steps to rebuild the consumer trust lost in the wake of data breaches.

The general consensus from the findings indicates a consumer preference for improved cybersecurity measures. Retailers and financial institutions would therefore benefit from responding to these customer concerns by implementing more robust security and encryption measures, and providing transparent communications about their cybersecurity efforts.