Wave of retail cyber attacks affecting consumer confidence in ecommerce

Data provided by cybersecurity company ESET revealed that many shoppers have lost trust in retailers following a wave of cyber attacks on household names, including Marks & Spencer, Co-op and Harrods.

The research showed 78% of consumers are concerned about their personal and financial details being compromised as a result of online retail transactions and less than 65% have trust in online retailers to protect them. 

ESET found that over four out of five consumers said they have previously stopped shopping with a brand after a cyber attack, and only 2% would be willing to return within less than a month of an incident.

Shoppers put this down to a fear of fraud and loss of trust when choosing to abandon a retailer after a breach.  

However, 68% of consumers now say strong cybersecurity measures or clear privacy policies would make them more likely to shop with a brand. 

Younger consumers aged 16-34 are nearly twice as likely as over-55s to be influenced by the fear of fraud to stop shopping with a brand after a cybersecurity attack. 

The data also revealed that consumers will only return to a brand post-breach if the company demonstrates security improvements over time with no further incidents. 

Just over a third of shoppers would be satisfied with a public apology and 47% expect compensation for personal losses after a cyber attack. 

ESET UK country manager Matt Knell said: “Strong security isn’t just a business expense, it’s a differentiator. Brands that invest in cybersecurity and clearly communicate those efforts can boost conversion, retention and even margin.  

“Today’s shopper is increasingly security savvy and retailers who ignore that do so at their peril. But for those who embrace transparency and security innovation, there’s a clear competitive edge to be gained.”

ESET conducted its research with Opinion Matters, a member of the British Polling Council, and used a sample of 2,000 UK respondents.

The company concluded that to regain shoppers’ trust, brands must lead with transparency. 

Almost half of consumers surveyed said they would pay more for a secure shopping experience and 59% said this starts by offering recognisable payment methods.

Over a third of people are aware of having their personal or financial details being compromised in the last three years due to a retailer’s attack and 43% lost £100 or more as a result.