According to data from the 2016 KPMG Consumer Loss Barometer, 19% of consumers surveyed would stop shopping at a retailer that had been the victim of a hack, and 33% would stop shopping at that retailer for at least three months. The largest barrier to returning to a breached merchant is the lack of a solid plan to prevent further attacks, according to KPMG.
Merchants should double down on efforts to protect sensitive consumer information. Recently, a number of major brands, including several national hotel chains and Eddie Bauer have experienced point-of-sale breaches. And Oracle’s MICROS POS system, which services over 330,000 merchants globally, also suffered an attack.
Retail companies have considerable room to grow (of executives surveyed by KPMG, 55% have not seen their company invest capital funds in cybersecurity protection in 2015) which means we may see increases in POS and data security initiatives from merchants and POS vendors moving forward.
Fraud cost US retailers approximately USD 32 billion in 2014, up from USD 23 billion in 2013. To solve the card fraud problem across in-store, online, and mobile payments, payment companies and merchants are implementing new payment protocols that could finally help mitigate fraud.
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