SOURCE: FireEye

FireEye

May 12, 2016 09:04 ET

New FireEye Research Reveals the Impact of High-Profile Security Breaches on U.S. Consumers' Trust of Brands

76 Percent of Consumers Would Likely Take Their Business Elsewhere Due to Negligent Data Handling Practices; 72 Percent of Consumers Will Now Share Fewer Personal Details With Companies; 54 Percent of Consumers Feel More Negatively of Organizations Breached; 78 Percent of Consumers Are Cautious of Organizations' Abilities to Keep Data Safe

MILPITAS, CA--(Marketwired - May 12, 2016) -  FireEye, Inc. (NASDAQ: FEYE), the leader in stopping today's advanced cyber attacks, today released the results of new research that finds high-profile data breaches are negatively impacting consumer trust in major brands. The FireEye commissioned research -- conducted by independent technology market research specialist Vanson Bourne with a survey of 2,000 adults within the U.S. in April 2016 -- confirms the rising public concerns of data privacy.

Findings revealed that 76 percent of respondents would likely take their business elsewhere due to negligent data handling practices. Additionally, 75 percent of consumers stated they were likely to stop purchasing from a company if a data breach was found to be linked to the board failing to prioritize cyber security.

The survey findings also highlight the potential long-term financial impact of data breaches on major brands, with 59 percent of consumers warning they would take legal action against companies if a data breach resulted in their personal details being used for criminal purposes. 72 percent of consumers also reported that they will now share fewer personal details with companies, which could hit the revenues of organizations -- from social media platforms to search engines -- that rely on collecting detailed consumer data for advertisers.

"Unfortunately, large cyber attacks and data breaches are becoming more commonly associated with brand names in the United States," says Grady Summers, Senior Vice President and Chief Technology Officer, at FireEye. "After major data breaches, organizations often attempt to regain customer trust through initiatives such as free monitoring or other compensation. But this research finds that, despite these efforts, the cost of the attacks -- both financially and in damaged reputations -- remain for long after the breach.

"As the results tell us, consumers are more aware and increasingly willing to protect their data -- not only by sharing less personal information, but also by taking their business elsewhere," Summers continues. "Brands must now realize that data protection is something customers have come to expect and investments in security can create a competitive advantage in today's world of growing cyber attacks."

Other key findings included the following:

  • 52 percent of consumers would consider paying more for the same products or services from a provider with better data security
  • 54 percent of consumers feel more negatively of organizations breached
  • 78 percent of consumers are cautious of organizations' abilities to keep data safe
  • 52 percent of consumers said security is an important or main consideration when buying products and services
  • 90 percent of consumers expect to be informed within 24 hours if their service provider had suffered a data breach which could have compromised their data

Methodology
FireEye commissioned independent technology market research specialist Vanson Bourne to undertake the research upon which this press release and report is based. 2,000 interviews took place during April 2016 with regular consumers aged 18 or older in the United States. Interviews were conducted online using a rigorous multi-level screening process.

To download the report, please visit: https://www2.fireeye.com/WEB-Real-Cost-of-Data-Breaches.html.

About FireEye, Inc.
 
FireEye has invented a purpose-built, virtual machine-based security platform that provides real-time threat protection to enterprises and governments worldwide against the next generation of cyber attacks. These highly sophisticated cyber attacks easily circumvent traditional signature-based defenses, such as next-generation firewalls, IPS, anti-virus, and gateways. The FireEye Threat Prevention Platform provides real-time, dynamic threat protection without the use of signatures to protect an organization across the primary threat vectors and across the different stages of an attack life cycle. The core of the FireEye platform is a virtual execution engine, complemented by dynamic threat intelligence, to identify and block cyber attacks in real time. FireEye has over 4,700 customers across 67 countries, including more than 730 of the Forbes Global 2000.

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