Half of customers would revert to cash when shopping with a data breached retailer
More than half of consumers would go back to using cash at the checkout if a merchant suffered a data breach, according to a report.
In a survey by Thales e-Security, 55 per cent of US consumers said that they would abandon cards and mobile payments in favour of cash at a breached retailer.
20 per cent said they would stop shopping at the chain altogether, while a quarter said they would shop there and use all methods of payments as they usually would.
“These survey results offer a stark reminder that a serious data breach could stop many consumers from shopping at a merchant’s store or at the very least move them back to cash payments,” said Jose Diaz, director of payment strategy at Thales e-Security.
The survey also took a look at consumers’ shopping habits in the run-up to Christmas, highlighting how many card payments breached retailers could stand to lose.
59 per cent said they had bought gifts with a debit card, 56 per cent had made cash payments, 54 per cent had used their credit cards, 32 per cent had paid for goods with gift cards and 16 per cent had used mobile payments like Apple Pay
Previous research showed that online shoppers want transparency and honesty from retailers when they are hit by cyber attacks and data breaches.
80 per cent of those questioned by NTT Security said they expect more transparency following a breach, with better security and enforced password practices. Just 18 per cent said they would stop using a site permanently if it was compromised.
And another study claimed that retailers are overconfident in their endpoint security despite previous high-profile breaches, like the one at Target in 2013.
51 per cent of IT professionals said their automated tools do not pick up all the necessary information needed to detect unauthorised configuration changes.