January 21, 2019

Did You Know A Public Data Breach Will Cost Your Company Up To A Third Of Your Clients And Customers?

A public data breach can really hurt your company in both the short-term and the long-term. As a respected provider of network security options in Orange County with private cloud capabilities, Zephyr Networks knows that retailers, service-oriented business owners and healthcare providers need to be put on notice right away. If your company suffers a public data breach, you should expect to lose up to a third of your clients and customers. Such frightening findings have been revealed in a new study entitled “Avoidable Collateral Damage from Corporate Data Breaches,” conducted by Javelin Strategy & Research and sponsored by Identify Finder.

Reported on in an article on e-Security Planet, Javelin surveyed 5,634 U.S. adults on their views around data security and privacy. Three points in particular stood out as being downright unnerving for a business owner facing a potential public data breach.

Public Data Breach Downside

  1. 33 percent of consumers said they will shop elsewhere if their retailer of choice suffers a data breach.
  2. 30 percent of patients said they will find a new healthcare care provider if their hospital or doctor’s office is breached and their data is placed in a position of jeopardy.
  3. 24 percent of consumers said they will change banks or credit card providers if their financial institution suffers a data breach.

As Marc Winger of Zephyr Networks explained, “It is scary for a business owner to see how many affected clients and customers will vanish post-breach. In past experiences, we have seen that such a drop-off can be anywhere from a 20% to even a 50% loss once the news gets out. That’s a big loss in terms of reduced sales and shows exactly how a data breach hits the bottom line of a business incredibly hard. Given the lack of skilled IT security professionals capable of dealing with such data breaches and the scope of work required to identify the vulnerabilities, it really makes sense for business owners to safeguard their futures by having a ready-made solution in place.”

Public Data Breach Challenges

public data breach

Public Data Breach Dangers

A further problem is too many companies have imprecise data breach detection systems and second-rate cyber security that casts too big of a net. Neiman Marcus experienced 30,000 security alerts during the period of its three-month public data breach in 2013. Such a bombardment of security alerts aids cyber-criminals in masking their attacks. By having imprecise network security systems and protocol and failing to move to the safety of the private cloud, small to mid-sized business owners are placing their future in jeopardy.

Zephyr Networks can address such problems and truly help safeguard the future of your business and protect you from the dangers of a public data breach. To learn more about how Zephyr Networks can help you with a tailored package of network security, data breach protection and private cloud IT options, please call 800.884.7559 for a free consultation.