Member Article

Survey provides a stark warning for companies which suffer a data breach – could 78 per cent of consumers withdraw their custom?

British consumers have warned they will withdraw their custom from companies which suffer data breaches in huge numbers now that GDPR is here - the results make sobering reading for companies that are hacked or lose data.

The EU General Data Protection Regulation not only provides a new compliance structure to tackle breaches, with potential fines of up to 4m Euros or four per cent of global turnover, it also gives EU citizens greater rights over their personal data.

Now a survey by Crown Records Management, global information management experts, has revealed that people from all walks of life plan to think much harder about who gets their data in future.

The key findings, after 2000 people were polled in the UK, included:

• 78 per cent said they would either definitely or probably withdraw their custom from a company which suffered a data breach.

• Those aged 25-34 were most certain – 35 per cent said they would definitely withdraw their custom and 45 per cent said ‘probably’.

• Almost a third say a company’s reputation could be damaged for up to two years if they do suffer a breach

• More than a third said they will be more selective about who they give their data from now on – rising to 38 per cent for people aged 16-24.

David Fathers, Regional General Manager at global information management experts Crown Records Management, said: “These results should be a wake up call for many businesses which handle personal data.

“GDPR is creating a new environment in which the public is far more savvy and far more concerned about how its personal data is handled and looked after.

“Companies that have strong information management and data protection systems, and which show they look after data well, should flourish. But those who don’t – and those who suffer data breaches – could find the market more difficult.

“Many of the stories around GDPR have concentrated on the fines, and they are significant. But for a company’s reputation to be ruined for up to two years – and for 78 per cent of consumers to say they may look elsewhere is perhaps even more significant.”

“A lot of people are waiting to see how GDPR compliance will work and whether these threatened fines will become reality,” David Fathers said.

“Will the authorities look for a high profile first ‘victim’? Or will there be some sort of settling-in period? It will be interesting to see. But in future it may not be the fines that worry companies most – it will be the loss of reputation and the loss of custom. That’s probably the biggest reason why businesses need to get their data protection and information management systems in order.”

For more information, visit www.crownrms.com .

This was posted in Bdaily's Members' News section by Crown Records Management .