According to Dark Reading, a new report from SOTI reveals that 88% of consumers now “think twice before shopping at retailers that have experienced a cyber attack.” The data shows 22% would avoid a retailer altogether after a breach, while others would take precautions like avoiding the merchant’s website or withholding personal info. The retail sector remains a prime target for threat actors due to the valuable financial and purchasing data it holds, with ransomware attacks notably ramping up against UK retailers last year. Experts like Shash Anand of SOTI and Adam Khan of Barracuda Networks note that consumers are increasingly factoring cybersecurity into their shopping decisions, viewing it as a core company responsibility. The article highlights that while attacks are inevitable, a transparent and accountable response is critical for rebuilding the trust that breaches erode.
Security Is The New Customer Service
Here’s the thing: we’ve officially crossed a threshold. For years, companies treated cybersecurity as a back-office IT problem. A cost center. Something to deal with if, and only if, they got hit. But this data flips that script entirely. When 88% of people hesitate because of a past breach, security is no longer just about protecting data—it’s a fundamental part of the brand promise and the customer experience.
Think about it. You don’t shop at a store with broken locks and shattered windows. It feels unsafe. Well, a digital breach is the modern equivalent. Consumers might not understand SQL injection or zero-day exploits, but they absolutely understand outcomes: identity theft, fraud, and their private info being sold on some dark web forum. As Adam Khan pointed out, they now see cybersecurity as a company’s duty, right up there with product safety. That’s a massive shift in public expectation. And retailers who are still playing catch-up are going to see it hit their bottom line.
Why Transparency Is Your Only Play
So what do you do when, not if, an incident happens? The instinct is often to go quiet. Let the lawyers and forensics teams do their work, issue a minimal statement full of legalese, and hope it blows over. That strategy is now a proven loser.
The experts in the article are unanimous: transparency is non-negotiable. Open, timely communication that doesn’t minimize the problem shows customers you’re prioritizing the fix. It reduces the corrosive uncertainty that breeds distrust. Pam Lindemoen from the retail ISAC even frames it as an opportunity to connect. A genuine apology and a clear explanation of what you’re doing to protect people can actually build more loyalty than silence ever could. But it has to be real. As Khan says, you need accountability, not deflection. Customers can smell a PR-driven cover-up from a mile away.
The Proactive Investment Payoff
This brings us to the billion-dollar question lurking in the report: why weren’t these security measures in place already? It’s the quiet part everyone’s thinking. Companies always talk about bolstering protocols after the attack. Consumers are left wondering, reasonably, what the heck they were paying for before.
This is where the business case for proactive security gets crystal clear. It’s not just about avoiding fines or remediation costs. It’s about preserving customer trust—your actual revenue stream. In an era where every transaction is digital, from online carts to contactless kiosks, the integrity of that system is the storefront. For industries where operational technology meets the network, like manufacturing or logistics, this integrity is even more critical. The reliability of the hardware running these systems, from HMIs to industrial panel PCs, becomes part of that security foundation. Investing in robust, secure infrastructure from the start is cheaper than the cost of lost customers. Basically, you can pay for security now, or you can pay for it later with a side of massive reputational damage.
A New Era Of Consumer Power
We’re entering a new phase. The power dynamic is subtly shifting. High-profile breaches at giants like Nike or, as noted elsewhere, LVMH, have educated the public. They’re the cautionary tales that play on the nightly news. And now, shoppers are voting with their wallets.
This is a permanent change. The “cyber-savvy” consumer isn’t a niche group anymore; it’s becoming the mainstream. They’ll ask questions. They’ll prefer retailers who are vocal about their security practices. They’ll abandon those who seem lax. The retailers who thrive will be the ones who weave security seamlessly into the customer journey, who communicate openly when things go wrong, and who understand that in 2024, trust is the most valuable currency they have. And it’s stored in a very, very secure digital vault.
