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Arcserve sees links between ransomware, consumer behaviour, brand loyalty 

Arcserve sees links between ransomware, consumer behaviour, brand loyalty

Data and ransomware protection provider Arcserve LLC has published Ransomware’s Stunning Impact on Consumer Loyalty and Purchasing Behaviour – research that measures how cybercrime influences purchasing behaviour and brand loyalty. It found that while most consumers are taking necessary security precautions to protect their online accounts, businesses may not be doing enough to protect their information – inadvertently driving sales to competitors that can.

Nearly half of consumers said they would walk away from their banking or securities provider immediately upon experiencing a ransomware-related event which prohibited them from transacting or accessing information; and 43% would immediately seek out a competitive communications product or service.

The survey of nearly 2,000 consumers across North America, the United Kingdom, France, and Germany, found that 70% believe businesses aren’t doing enough to adequately secure their personal information and assume it has been compromised without them knowing it. And, as consumers become more educated and cyberattacks become well-known, perceived trust becomes more influential in their purchasing decisions, with Arcserve also finding that:

  • Nearly nine of ten consumers consider the trustworthiness of a business prior to purchasing a product or service; and,
  • 59% of consumers would likely avoid doing business with an organization that had experienced a cyberattack in the past year.

 

Cyberattacks have arguably become the largest business threat, however the quantifiable impact on consumer behaviour has not been widely understood. Arcserve found that one in four consumers will abandon a product or service in favour of a competitor after a single ransomware-related service disruption, failed transaction, or instance of inaccessible information. It also found that tolerance for these events quickly deteriorates, with:

  • Over 66% of respondents citing they would turn to a competitor if an organization couldn’t restore systems and applications within three days following a cyberattack; and,
  • Over a third of those would be willing to switch after a mere 24 hours of waiting to access their information or make a transaction.

 

“Consumers are clearly already hesitant about working with companies hit by cyberattacks, and they just won’t tolerate disruption as businesses figure out recovery and remediation plans after-the-fact,” said Arcserve CTO Oussama El-Hilali. “The findings represent a stark warning for all organisations given that one in four of their customers will be gone immediately upon disruption, with many more losing patience within 48 hours. Businesses must do more to ensure they’re protecting their data from cybercriminals and mitigating the chance they’ll experience extended downtime. We recommend a two-pronged approach where cybersecurity, backup and disaster recovery are deeply entwined.”

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