The continuous evolution of digital transformation is outstripping the pace of cyber security in organizations. As a result, we’re witnessing a fundamental disconnect between consumer expectations and concerns, and the ability of organizations to meet those expectations, according to KPMG’s Consumer Loss Barometer report.
The global survey of more than 2,000 consumers and 1,800 Chief Information Security Officers (CISOs) identified a mismatch between the priorities of CISOs and consumers in the event of a breach.
Consumers continue to have reservations about the possible misuse of their private details. They are more worried about how these breaches will affect them personally and are less concerned about the impact of a breach on an organization. The survey found sixty-nine (69 percent) of consumers reported concerns about their technology being compromised while thirty-seven (37 percent) of consumers reported having their financial information compromised. On the other hand, two-thirds of CISOs say they prioritize financial loss and reputational risk over the impact on customer trust.
“It’s clear that organizations are still prioritizing their bottom line ahead of consumer expectations and concerns, despite the opportunity to use effective cyber security strategy to build consumer confidence and engagement,” says Akhilesh Tuteja, KPMG Global Co-Leader, Cyber Security.
In the event of a breach, consumers prefer proof of a fix over an apology (42 and 24 percent respectively). Conversely, CISOs say they would prioritize an apology over provision of those details (47 and 8 percent respectively).
Tuteja continued, “Organizations can redesign the relationship with their customers by placing trust at the center of how they do business. By reinforcing consumer trust, this can actually improve a company’s ability to retain customers and propel growth.”
The data published in this report are based on a survey of 1,802 CISOs (or equivalent) in 24 markets, across 12 industries. The respondents were from companies with annual revenues between US$100 million to US$10 billion or more. Consumer data was based on a survey of 2,151 consumers in 24 markets. The sample included all age categories, with a higher percentage of Millennials and Gen Xers, as well as being diversified by gender.