Customers won't tolerate security breaches

Thursday, 6 May 2004, 11:00 AM EST

Latest research shows that firms who fall victim to hacking, viruses or phishing may have to worry about more than just patching up their systems.

A survey, which was carried out by telecoms firm Energis, found the rate of customer attrition in the business-to-business sector rose by 47 per cent after a firm fell victim to hacking, a virus, a denial of service attack or a phishing fraud.


Energis spoke to more than 100 large companies or government agencies, and found nearly all of them had suffered a security breach in the last year. These organisations reported many of their existing customers had taken their business elsewhere because of these breaches and the customers that remained were spending on average four per cent less with them.

By Graeme Wearden at Silicon.

[ Read more ]




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