19% shoppers would abandon a retailer that’s been hacked

Survey also shows majority of retailers haven’t invested in cybersecurity in the past year

Nearly a fifth of shoppers would avoid at a retailer that has been a victim of a cybersecurity hack, according to a survey.

The 2016 KPMG Consumer Loss Barometer report surveyed 448 consumers in the U.S. and found that 19% would abandon a retailer entirely over a hack. Another 33% said that fears their personal information would be exposed would keep them from shopping at the breached retailer for more than three months.

The study also looked at 100 cybersecurity executives and found that 55% said they haven't spent money on cybersecurity in the past yearand 42% said their company didn't have a leader in charge of information security.

Those responses confirmed worries that retailers are falling behind other industries like financial services and technology on cybersecurity issues.

"There is a lot at stake here for retailers," Mark Larson, KPMG business leader for consumer markets, said in a statement. "Retailers that don't make cybersecurity a strategic imperative are taking a big gamble."

Tony Buffomante, cybersecurity leader for KPMG, said many retailers are not doing enough to protect their businesses from cyberattacks or react to them when they do occur. Paying more attention to cybersecurity could help their businesses, he added.

The survey results, posted Tuesday online, found that retail and automotive industries were laggards in appointing leaders to assess cyberthreats and opportunities. The financial services and tech industries were leaders.

Cyberattacks were also called "rampant" in the survey, showing that retail executives reported the most malware and internal and botnet attacks of the four industries (financial services, tech, retail and automotive).

KPMG advised companies to think about cybersecurity less as an IT-managed risk and more as a strategy issue. "Branding, loyalty, sales, overall customer relationships and business agility all hang in the balance," KPMG said.

The survey findings and KPMG's conclusions echo other surveys and comments by analysts who have called on businesses generally to focus more squarely on cybersecurity protections.

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Matt Hamblen

Computerworld (US)
Show Comments

Essentials

James Cook University - Master of Data Science Online Course

Learn more >

Mobile

Victorinox Werks Professional Executive 17 Laptop Case

Learn more >

Sansai 6-Outlet Power Board + 4-Port USB Charging Station

Learn more >

Exec

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?