Dark Reading is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Comments
Study: Data Breaches Make Huge Impact On Brand Reputation
Newest First  |  Oldest First  |  Threaded View
Bprince
50%
50%
Bprince,
User Rank: Ninja
5/18/2014 | 12:46:36 AM
Re: Ummmm.......
I was going to bring up the decline in sales as well. I don't know if that is the case in breaches overall, but certainly Target took a hit in this case. I think it also may matter why the breach happened and how the affected company handles the response. With Target, there were questions raised about why this wasn't stopped, and lawsuits started flying. 

BP
Kelly Jackson Higgins
50%
50%
Kelly Jackson Higgins,
User Rank: Strategist
5/15/2014 | 5:23:42 PM
Re: Ummmm.......
Yes, there appears to have been at least some initial queasiness about shopping there after the breach--plus the remediation costs to Target for the aftermath. 
Kwattman
50%
50%
Kwattman,
User Rank: Black Belt
5/15/2014 | 2:58:35 PM
Re: Ummmm.......
If no one is "doing anything about it" - then why are target sales down 46%???
Kwattman
50%
50%
Kwattman,
User Rank: Black Belt
5/15/2014 | 2:56:42 PM
Re: Ummmm.......
If no one is "doing anything about it" - then why are target sales down 46%???
securityaffairs
50%
50%
securityaffairs,
User Rank: Ninja
5/15/2014 | 2:18:45 PM
Re: Ummmm.......
Data breaches represent a serious problem for companies, brand reputation is just one aspect. Ponemon has evidenced this, but I fear that asset damages, service interruption, response procedures and recovery activities have a similar impact.

 
Kelly Jackson Higgins
100%
0%
Kelly Jackson Higgins,
User Rank: Strategist
5/15/2014 | 11:30:52 AM
Re: Ummmm.......
It's definitely easier to stop shopping at Target (well, for maybe for some people, not me ;-) ) and go somewhere else than it is to switch doctors. It would be nice to see actual impact data on retailers and healthcare orgs.
armorguy
50%
50%
armorguy,
User Rank: Apprentice
5/15/2014 | 11:21:39 AM
Re: Ummmm.......
I absolutely believe that people say they will switch in the event of a breach.

 

But, when the inevitable breach happens, do they?  Only if they do make that change does the breached organization suffer any damage.

 

I am not aware of a valid study that has addressed this question.  My anecdotal experiences, especially in a healthcare environment, are that a few do but most do not.  People *like* their doctor and it takes a lot for them to take the effort to find a new one.
Kelly Jackson Higgins
100%
0%
Kelly Jackson Higgins,
User Rank: Strategist
5/15/2014 | 11:16:20 AM
Re: Ummmm.......
A recent Javelin study we covered showed similar consumer sentiments, even with their doctors: http://www.darkreading.com/attacks-breaches/consumers-ditch-their-breached-retailers-banks-and-doctors-/d/d-id/1234959?
armorguy
0%
100%
armorguy,
User Rank: Apprentice
5/15/2014 | 10:23:53 AM
Ummmm.......
So brand damage is "huge".  People are "outraged".  But they aren't doing anything about it.

 

Like so many studies from Ponemon this doesn't make sense.  If there were brand damage there would be consistent data showing sales impact directly tied to breach, long term stock price decline due to breach, etc.  But none of that exists.

 

If the premise were true the sponsor of the study, Experian, would have a highly damaged brand.  Do they?

 

To be clear I am not saying Larry Ponemon (or anybody associated with the Ponemon Institute) aren't good people nor am I questioning anybodys motives.  I'm saying that too many of their studies fail critical evaluation and *that* damages the Ponemon brand.


COVID-19: Latest Security News & Commentary
Dark Reading Staff 8/3/2020
'BootHole' Vulnerability Exposes Secure Boot Devices to Attack
Kelly Sheridan, Staff Editor, Dark Reading,  7/29/2020
Out-of-Date and Unsupported Cloud Workloads Continue as a Common Weakness
Robert Lemos, Contributing Writer,  7/28/2020
Register for Dark Reading Newsletters
White Papers
Video
Cartoon Contest
Current Issue
Special Report: Computing's New Normal, a Dark Reading Perspective
This special report examines how IT security organizations have adapted to the "new normal" of computing and what the long-term effects will be. Read it and get a unique set of perspectives on issues ranging from new threats & vulnerabilities as a result of remote working to how enterprise security strategy will be affected long term.
Flash Poll
The Threat from the Internetand What Your Organization Can Do About It
The Threat from the Internetand What Your Organization Can Do About It
This report describes some of the latest attacks and threats emanating from the Internet, as well as advice and tips on how your organization can mitigate those threats before they affect your business. Download it today!
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2020-14310
PUBLISHED: 2020-07-31
There is an issue on grub2 before version 2.06 at function read_section_as_string(). It expects a font name to be at max UINT32_MAX - 1 length in bytes but it doesn't verify it before proceed with buffer allocation to read the value from the font value. An attacker may leverage that by crafting a ma...
CVE-2020-14311
PUBLISHED: 2020-07-31
There is an issue with grub2 before version 2.06 while handling symlink on ext filesystems. A filesystem containing a symbolic link with an inode size of UINT32_MAX causes an arithmetic overflow leading to a zero-sized memory allocation with subsequent heap-based buffer overflow.
CVE-2020-5413
PUBLISHED: 2020-07-31
Spring Integration framework provides Kryo Codec implementations as an alternative for Java (de)serialization. When Kryo is configured with default options, all unregistered classes are resolved on demand. This leads to the "deserialization gadgets" exploit when provided data contains mali...
CVE-2020-5414
PUBLISHED: 2020-07-31
VMware Tanzu Application Service for VMs (2.7.x versions prior to 2.7.19, 2.8.x versions prior to 2.8.13, and 2.9.x versions prior to 2.9.7) contains an App Autoscaler that logs the UAA admin password. This credential is redacted on VMware Tanzu Operations Manager; however, the unredacted logs are a...
CVE-2019-11286
PUBLISHED: 2020-07-31
VMware GemFire versions prior to 9.10.0, 9.9.1, 9.8.5, and 9.7.5, and VMware Tanzu GemFire for VMs versions prior to 1.11.0, 1.10.1, 1.9.2, and 1.8.2, contain a JMX service available to the network which does not properly restrict input. A remote authenticated malicious user may request against the ...