This week, President Obama announced that cyber security will be a prominent topic in his State of the Union address. He released a fact sheet saying the majority of US residents believe their data isn’t safe. The government will take several steps to increase security, including passing a data-breach notification law and legal protections for companies sharing hacking threats, and retailers should too. As mentioned in L2’s Intelligence Report: Security Breaches, 11% of online information hacks occur in retail locations or sites.
And the effects are long lasting. Thirty-nine percent of consumers say they shop less frequently after being exposed to a breach and 70% say they are more likely to use cash, which often means less sales for retailers.