New Data From ThreatX Reveals 90% of Consumers are Concerned Poor Vendor Security Will Negatively Impact Their Lives in 2023

Survey finds consumers want more transparency into vendor cybersecurity strategies and are less likely to work with vendors that have a history of data breaches

According to new data released today from ThreatX, the leading API and application protection platform, 60% of U.S. consumers are less likely to work with a brand that has suffered a data breach. In addition, only 10% of consumers reported feeling protected by vendors and 21% said they would switch to a competing brand following a vendor data breach. Consumers are prioritizing their security, with 60% saying they would consider paying premiums to ensure vendors are adequately protecting their personal information.

As consumers adopt more interconnected digital applications while sophistication and scale of cyberattacks continue to grow, ThreatX surveyed 1,000 consumers about the impact data breaches have had on their lives to highlight consumers’ evolving concerns around data security. The results showcase why modern businesses must improve their cybersecurity strategies to defend against today’s threat landscape and maintain positive brand reputation. With almost half (48%) of consumers confirming their data has been left vulnerable following a data breach due to an organization’s lack of protection, and 9 in 10 agreeing they’re concerned this lack of protection will negatively impact their lives, it’s more important than ever businesses ensure they are monitoring and blocking potential threats in real time.

“Consumer connectivity and overall engagement is powered by APIs and applications on a daily—if not hourly—basis. And today, some of the most significant data breaches organizations suffer are due to vulnerable APIs and applications which expose sensitive information,” said Gene Fay, CEO of ThreatX. “Consumers are more vigilant than ever about protecting their data and they’re now demanding more from the vendors they work with. For businesses, the ability to uncover and track suspicious API and application behavior in real time is the key to a good cyber defense, strong consumer loyalty, and an overall competitive differentiator.”

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Additional findings from the report reveal:

• There is a generational divide when it comes to holding brands accountable: More than half of Millennials and Gen Z consumers said they are very likely to switch to a competing vendor following a cyberattack or data breach, compared to only 38% of Boomers and Gen Xers. To that effect, Millennials and Gen Z consumers are twice as willing (58%) to pay a premium for better security than Boomers and Gen Xers (29%).
• Consumers fear data breaches will create a financial burden: 40% of consumers ranked financial burden as a top concern for them following a vendor data breach amid the ongoing recession.
• Customers want transparency: When asked to rank what they valued most from brands, 30% of consumers surveyed said transparent communication around a vendor’s security practice the most , followed by the measures taken in response to a data breach (20%) and a vendor’s action plan to previous data breaches (18%).

ThreatX’s data reveals the potential devasting impact that data breaches can have on consumers’ lives, and on brands’ reputations. With many of today’s high-profile data breaches – think Peloton, Venmo, T-Mobile – being the result of unprotected APIs and applications, it’s become imperative that organizations implement robust security measures to protect APIs and applications and preserve their ability to rapidly innovate and meet consumer demands. As more and more technological advancements rely on APIs and applications, real-time scanning of all inbound API and application traffic is critical to effectively identifying and blocking attacks.

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