Page 22 - Cyber Defense eMagazine July 2024

Crisis of Confidence Among Consumers

We have entered an era where consumer confidence is waning. According to a recent Cisco survey, 76%
of consumers said they would not buy from an organization they did not trust with their data. This
sentiment is echoed by the 81% of respondents from the same survey who agreed that how an
organization treats its data indicates how it views and respects its customers. As privacy concerns
escalate and data breaches become more prevalent, it is imperative for companies to forge a robust
social contract that places the protection of consumer data at the forefront.

The absence of such a social contract can lead to dire consequences, including a significant erosion of
consumer trust, which is the cornerstone of any successful business relationship. Moreover, companies
are liable to legal and compliance repercussions in the event of data breaches, which can have long-
lasting negative impacts on their reputation and financial standing.

Companies must embrace a privacy policy written in plain language. It should be obvious to the reader
what data a company collects, uses, shares, and discloses about them. Transparency builds trust with
consumers and trust delivers loyalty. The irony being that “loyalty” programs are some of the worst
offenders, in terms of, a lack in transparency to their consumers. Practical steps can make a difference
without much effort. Privacy policies easily found on website landing pages. Use plain language that is
easily accessible and understandable for consumers. By doing so, companies can demonstrate their
commitment to data responsibility and build consumer trust, an asset in building deeper brand
relationships.

Recent Data Breaches

Businesses today thrive on a global infrastructure through the exchange of data. They collect, store, and
share massive amounts of sensitive information like customer emails, addresses, and Social Security
numbers, aiming to ensure the best customer service is maintained while also adhering to data protection
and privacy laws.

However, the recent cyberattack on Change Healthcare serves as a reminder of the importance of
harnessing data responsibly. This breach, poised to become the largest health data compromise in U.S.
history, was precipitated by unauthorized network access. The attackers exploited an application used
by staff for remote system access, deploying ransomware that ultimately led to credential compromise.

This breach highlights how thin of a line these businesses walk as the attack has impacted 129 million
individuals and 67,000 pharmacies globally, including all our military hospitals around the world.

Enhancing Data Security and Consumer Trust

To enhance data security and foster consumer trust, organizations must strike a delicate balance
between harnessing data for business growth and upholding ethical standards. Organizations must
develop frameworks that not only enable data sharing but also adhere to stringent data protection

Cyber Defense eMagazine – July 2024 Edition 22
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