September 19, 2016 — Protecting customer loyalty with comprehensive user verification
This is a guest post by Ryan Wilk, vice president of customer success at NuData Security on BiometricUpdate.com
According to the 2016 Verizon Data Breach Investigations report, hacking using legitimate user credentials was associated in most of last year’s data breaches, and more than 60 percent of confirmed breaches involved weak, default or stolen passwords. When it comes to data breaches, the biggest impact typically isn’t in the immediate financial sense. Instead, the biggest impact is on customer loyalty. In fact, a recent study found that 85 percent of U.S. consumers said that if significant personal consequences resulted from their information being stolen, they’d take their business elsewhere. Nearly 70 percent said they would cut ties with the victimized brand if money was actually removed from their checking accounts, and another 62 percent said they’d do so if their credit cards were charged for fraudulent purchases.
What does this mean for organizations? Put simply, the true business differentiator in today’s economy is protecting the lifetime customers. These are the loyal customers who make frequent purchases from your ecommerce site, the longtime users of your bank or other financial institution – the people whose opinion of your company matters most the most when push comes to shove. To successfully avoid the fallout from breaches, organizations must focus on understanding who their customers are early on. There has to be trust built up on both sides. Not only must you know who your customer really is, but you also want them to understand that you know who they are. To do so requires a new approach to authentication, one that focuses on protecting these vital customers rather than just looking to weed out the bad guys. Passwords alone aren’t cutting it, and single point security solutions aren’t enough, either.
For the complete article, go here.