Data breaches seem like they are becoming all too common. Within the first six months of 2024, over 1,500 data breaches were reported—a 14% increase from the first half of 2023. As new technologies continue evolving, cybercriminals can move quicker and smarter, and cybersecurity teams must move quickly to keep up with them. Unfortunately, while many companies perform their security due diligence, it only takes one crack in the wall to allow a breach. Now with more sensitive data being stored digitally, the stakes are high for customers, and companies are seeing the importance of reputation management after a data breach.
The High Stakes of Data Security
In a digitally reliant world, we store most, if not all, of our sensitive information in the virtual landscape. From credit card details to social security numbers, any data required to successfully commit fraud or steal identities is available to those who know how to access it. Customers are well aware of this fact, which exhibits how much trust they place in organizations to allow them to carry this data. However, when a data breach occurs, that trust is permanently damaged.
According to research from Vercara, 66% of U.S. customers would lose trust in companies that suffered from data breaches. Whether or not the company took every precaution and still fell victim to cybercrime, 44% of consumers believe breaches are due to lackluster cybersecurity measures. That broken trust is also linked to revenue, as 75% are prepared to end their business with those who suffered a cyber breach.
Although a best-case scenario would be to avoid data breaches entirely, cybersecurity professionals must plan for the worst-case scenario with strategies to soften the blow to their reputation.
Strategies for Reputation Management After a Data Breach
Be Transparent
The longer an organization takes to address a breach, the worse the fallout will be. All customers, stakeholders, and employees must be notified about the breach as soon as possible. To help, companies can prepare a pre-written notification of breach message with the promise to provide details when available. Timing and transparency are critical when managing reputation.
Take Responsibility
Although the breach may not be the fault of any one person in the company, taking accountability is crucial for maintaining trust. Offer a sincere public apology and cooperate with any legal measure that arises because of the breach. Taking responsibility in this manner will demonstrate integrity and a commitment to protecting consumers and stakeholders, which is essential for rebuilding the company’s reputation.
Offer Support
After a breach, stakeholders and consumers may feel uncertain and vulnerable, unsure of how to protect themselves now that their sensitive data has been compromised. Beyond issuing an apology, providing a clear, actionable plan for their next steps can offer reassurance and guidance, helping them feel supported and empowered during a challenging time.
Case Study: Target (2013)
In 2013, Target was the victim of a significant data breach, compromising 40 million debit and credit card accounts. Not only were the customers affected, but credit card unions had to spend over $200 million to reissue cards for consumers. While Target was relatively quick to notify the public about the breach (after four days), the news broke before the company could make an official announcement. Even though Target’s intention was to wait until they had more information about the breach, this delay negatively impacted its reputation for transparency.
Despite this setback, Target took significant steps to rebuild its brand and restore customer confidence. The CEO at the time brought in a new Chief Information Officer and a clear plan to strengthen cybersecurity measures. Target also issued a sincere public apology and testified before Congress to address the breach.
Target also executed its $100 million plan to implement chip-based credit card technology at a time when many U.S. companies were reluctant to do so. This adoption of chip technology, recognized as an added layer of security, was a crucial step in enhancing the safety of their customers’ data.
Securing Trust in a Cyber-Threatened World
Even the most diligent companies can fall victim to cybercriminals, but how they respond to these incidents can make all the difference. By acting swiftly, taking responsibility, and providing clear support to those affected, organizations can begin to rebuild trust and safeguard their reputation. In today’s digital age, where consumer trust is so closely tied to business success, reputation management after a data breach is a necessity, requiring a strong and proactive approach to cybersecurity.
