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The Customer Is Always Right — Right Out the Door

By ThreatMetrix
ThreatMetrix®, The Digital Identity Company®, is the market-leading cloud solution for authenticating digital personas and transactions on the Internet. Verifying more than 20 billion annual transactions supporting 30,000 websites and 4,000 customers globally through the ThreatMetrix Digital Identity Network®, ThreatMetrix secures businesses and end users against account takeover, payment fraud and fraudulent account registrations resulting from malware and data breaches.
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Breaches and Compromised Records Have Retail Customers Heading for the Exits in Droves

So far in 2014, according to security company SafeNet, there have been some 559 data breaches affecting 375 million records. SafeNet’s Breach Level Index second quarter report says from April to June 237 breaches resulted in over 175 million records compromised, 83 percent of which were in the retail industry.

Strong security platforms protect data

In her piece on (link to article), Sue Marquette Poremba observes, “Less than 1 percent of all of the data breaches in the second quarter happened to networks that used encryption or strong security platforms to protect the data. [Not] every security system is foolproof, but you greatly improve your chances of avoiding a breach if you put strong security practices in place…. [And once] a customer discovers a company has been breached, he or she is not likely returning.”

Breaches are bad business

Poremba cites a Yahoo Finance report of more than 4,500 adults in the USA, UK, Germany, Japan, and Australia. The report found “nearly two-thirds (65 percent) of respondents would never or were very unlikely to shop or do business again with a company that had experienced a data breach where financial data (credit card information, bank account number, or associated login details) was stolen.”

The SafeNet report’s answer to keeping customers and keeping out the guys is stronger encryption and improved user access to the network. While agreeing that the advice is good, Poremba points out she doesn’t think it’s an easy fix.

Everyone in the company has to be on the same page

“First you have to get everyone in the company, from leadership on down to the stock room, on board with the need to practice better security. Perhaps the way to approach this is to make them understand that their jobs are on the line. After all, if customers walk away because your company suffered a breach, would your business be able to survive?”

By ThreatMetrix Posted