New Study Reveals the True Effect Data Breaches have on Customer Loyalty
Suffering a breach is scary. The loss of crucial data and records can deal a crippling blow for any organization forced into extended downtime. But the worst part of a breach may not be the attack itself; the repercussions of this attack can have much further reaching effects. We’ve speculated about this effect in the past, but a new study by Carnegie Mellon University (reported on by The Register) confirms our suspicions: suffering a breach can cost you customers. Lack of Information Studies connecting consumer loyalty to breaches or fraud have been hard to come by in recent years, making this study especially noteworthy. Generally, we know that stock prices of organizations – especially financial institutions – take a hit after suffering breaches,
