75% of Consumers Ready to Shift to Competitors after Successful Ransomware Attack

Object First, Inc. survey unveils that 40% of consumers are skeptical of organizations’ ability to protect their data adequately.

Consequently, 75% of consumers would switch to another company after a ransomware attack. Furthermore, consumers are requesting increased protection from vendors that hold their data, with 55% favoring companies with data protection measures such as reliable backup and recovery, password protection, and identity and access management strategies.

As organizations intensify their digital transformation initiatives, data volume expands exponentially while ransomware attacks dominate the cyber-threat landscape. To understand the implications of ransomware attacks on consumer data, Object First conducted a survey of 1,000 consumers. The survey emphasized the evolving concerns and demands for robust backup, protection, and recovery strategies. The results underscore the necessity of a preemptive, effective backup and recovery plan to circumvent intricate, time-consuming, and costly recovery processes that could undermine vendor trust and jeopardize long-term business growth.

“Given the indispensable role of data in today’s world, it is no wonder consumers are seeking greater protection as organizations generate and consume more data than ever. With the escalating ransomware threat, data protection must be a core concern for every business. While preventing a ransomware attack is the ideal scenario, it is not always feasible,” said David Bennett, CEO. “Consumers take data protection seriously, and organizations must prioritize safeguarding consumer data vs. modern threats. This can be achieved by ingraining immutable data resilience as core to cyber security strategy.”

The report also presents several notable findings:

• Consumer concerns on the rise: 81% of consumers report feeling “very scared or worried” about their data being held by organizations lacking robust resilience vs. ransomware. After an attack, 1 in 3 consumers demand evidence of resilient backup and recovery strategies, and 30% lose all confidence in the company’s data protection plan.
• Accountability expectations are escalating: 75% of consumers are ready to shift to a competitor should a company suffer a ransomware attack. Moreover, a second ransomware attack causes 61% of consumers to reassess their negative perception of data protection and recovery practices.
• Ransomware attacks impact generations differently: While 37% of Gen Z prefers an apology from companies experiencing a ransomware attack, ranking 12% higher than monetary compensation, Baby Boomers are less forgiving. 74% of them agree their trust in the vendor is irreparably damaged after suffering more than one ransomware attack, compared to only 34% of Gen Z.

This research illuminates an alarming rise in consumer apprehension regarding companies’ capability to safeguard their data vs. ransomware attacks. New research from Veeam’s Ransomware Trends Report 2023 underscores this, indicating that 93% of ransomware attacks target backup repositories to coerce ransom payments. This makes it imperative for organizations to reassess their data protection strategies to ensure foolproof ransomware protection. Immutable on-premises backup storage can provide vendors with secure, unalterable, and ransom-proof data, restoring consumer confidence and preserving brand reputation.