Many Americans Say They Will Avoid Breached Retailers, Study Shows
Following security breaches, more retail stores may feel a slump from lack of customer confidence, a new study suggests.Retail stores hit by cyber-criminals have to worry about consumer backlash, as customers are more likely to avoid compromised retailers, according to a study released this week by CreditCards.com. The survey of 865 Americans by phone found that 45 percent would either "definitely" or "probably" not shop at a retailer this coming holiday, if they learned that the company had been breached by attackers. The interviews, carried out by Princeton Survey Research Associates International, also found that higher-income and college-educated respondents were less likely to punish retailers for security breaches. Yet, while consumers worry about breaches, those concerns many not be enough to keep them away from holiday sales, Matt Schulz, senior industry analyst for CreditCard.com, told eWEEK. "I think that generally most people will just keep doing what they are doing, and either not worry about it because they are busy and have other things to worry about, or because the message is getting out there that the actual liability you have is actually really low,"
In the past year, an increasing number of retailers have reported breaches in their point-of-sale systems. In 2013, Target acknowledged that its systems had been breached, with attackers stealing details on 40 million credit and debit cards as well as 70 million customer records containing personal information. The price tag to the retail giant has so far topped $148 million, according to its financial filings in August.