Data Breaches Hurt Business Investments

Data breaches and hacker attacks are a major concern for consumers whose personal information has been put at risk. They are also a major concern for investors.

A recent study by Zogby Analytics shows that companies that have been a target of at least one cyberattack are viewed by possible investors with skepticism. A whopping 78.1% of investors surveyed indicated they would be very unlikely to invest in such a business.

As well, 68.7% indicated they would avoid investing in a company that has had one or more data breaches.

The study also found that more than half of investors were more concerned with the theft of customer data than corporate data.

Companies that are ill-equipped to battle cyberattacks will likely find they will suffer a significant detrimental effect on their brand when they are hit. If they don’t react to a breach with a well-thought-out plan, the detrimental effect will be even more devastating.

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