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business after a data breach

How Do Customers Perceive Businesses After a Data Breach?

By John DiGiacomo

Nothing can be quite as devastating to a business’s customer base than a data breach. How do customers perceive businesses after a data breach? What was once a highly-trusted, well-regarded company could be quickly downgraded to an untrustworthy, irresponsible company after a data breach. The public generally perceives data breaches as a sign that a business was irresponsible with customers’ personal and payment data. A business that is victimized by a security breach is not viewed by customers as a victim. Instead, customers are often harsh in their reaction to a data security breach, oftentimes because they feel that their data has been exposed and because the trust between them and the business has been breached.

Many companies have endured a data breach, and have managed to recover with their customers. While not all customers may choose to continue their relationship with a business after a data breach, many customers will return to a business once they feel that the business can be trusted again.

Steps Businesses Can Take to Rebuild Trust With Customers

Even after a highly-publicized data breach, there are steps that a business can take to start rebuilding trust with its customer base. One of the most important steps for a business to take after a data breach is to acknowledge that the breach happened and apologize for it. Customers may initially react emotionally to news that their personal data or payment information has been compromised as the result of a data breach, but customers can be reminded that data breaches happen to a lot of businesses.

Additionally, taking the appropriate steps to notify the affected customers also helps customers to start rebuilding their sense of trust in the business. A business that reaches out to affected customers in a timely manner appears to be taking responsibility in the aftermath of a data breach. Timely notification about the breach in compliance with state and federal breach notification laws also makes the customer feel like the business cares that this unfortunate circumstance befell the company and the customer.

Finally, businesses can inform customers about how the business is coping with the data breach. By explaining to customers the steps that the business is taking to ensure that a similar breach does not occur again in the future, a business can begin to foster as sense of trust between the customer and itself. Customers like to see businesses that have been victimized by a data breach taking measurable steps forward to secure against future data breaches.

Speak With a Data Breach Lawyer

Businesses large and small fall victim to data security breaches and when a breach happens to your business it could have a negative impact on how your customers perceive you. The team of data breach lawyers at Revision Legal has helped a number of companies across the country deal with data security breaches and data breach notification compliance. The laws associated with data breach notification can vary from state to state and additional federal requirements might exist depending on what industry the data breach occurred in. Things need to move quickly after you have confirmed that your business has been subject to a data breach. You need the legal team from Revision Legal in your corner today. Contact us using the form on this page or call us at 855-473-8474.

Image credt: Free Press/ Free Press Action Fund

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