Vercara, a leader in cloud-based services that secure the online experience, has released the findings of its second-annual Consumer Trust & Risk Report. This year’s report shows a significant shift in how consumers perceive data breaches and the role they play in cybersecurity incidents. While breaches had less impact on consumer trust compared to 2023, there is a continued lack of awareness regarding the dangers posed by insider threats.

As organizations prepare for an increased volume of online shopping during the holiday season, the report offers valuable insights into consumer behavior, expectations, and the steps brands must take to protect sensitive data.

Key Findings from the 2024 Report

1. Decreased Impact of Data Breaches on Consumer Trust:

   • 58% of consumers still consider brands that experience data breaches to be untrustworthy. However, this figure represents a decrease from 62% in 2023.
   • 70% of consumers would stop shopping with a brand that suffers a security incident, highlighting the critical importance of maintaining consumer trust.
   • Generation Z is the least impacted by data breaches, while Baby Boomers are more likely to change their shopping habits in response to security issues.

2. The Unseen Threat: Insider Risks:

   • 5% of consumers associate insider threats with data breaches, despite human error being the primary cause of data loss in most cases.
   • Generation Z is the most aware of insider threats, with 36% of them citing this as a potential cause of data breaches, compared to only 5% of the broader population.
   • 30% of consumers have reported having their data exposed after shopping online, indicating a need for heightened awareness and security measures.

3. Consumers’ Role in Cybersecurity:

   • 21% of consumers reuse passwords across work and personal accounts, and 57% use their work devices for personal shopping, which increases organizational risks.
   • These behaviors underscore the need for both companies and consumers to adopt better security practices, including stronger password management and device usage protocols.

4. Trust Rebuilding Strategies for Brands:

   • To rebuild consumer trust after a breach, 44% of consumers want brands to detail the measures they will take to prevent future attacks.
   • The report also stresses the importance of proactive cybersecurity, especially during peak shopping seasons like the holidays.

Insights on Consumer Behavior and Holiday Shopping Risks

As the holiday shopping season approaches, the risks associated with consumer data exposure intensify. The report highlights that brands must take proactive steps to ensure the security of sensitive data, as only 1% of enterprises report the ability to respond extremely quickly to security incidents. This gap in preparedness presents significant risks, especially with increased consumer activity online during the holidays.

Vercara’s 2024 Consumer Trust & Risk Report paints a picture of a market where breaches are still a significant concern but their impact on consumer trust is waning, possibly due to “breach fatigue” or apathy. However, the report underscores the importance of educating consumers about the role they play in cybersecurity and the necessity for stronger internal security measures. With more consumers using work devices for personal shopping and reusing passwords, both organizations and consumers must take more responsibility in securing online interactions to avoid costly breaches.

By acting proactively, brands can ensure a safe and secure experience for their customers, particularly during the high-stakes holiday season.