Banking Customers Will Leave if Faced with Cyber Attacks

mrosenquist (70)in #security • 8 years ago

A new study from Carnegie Mellon University determined that customers care when it comes to fraud and may abandon their bank if fraud occurs. Unauthorized charges, even when reimbursed, can cause financial customers to leave. The reason? When fraud occurs, the bank gets blamed. Customers attribute such negative situations to the financial institution. The biggest tipping point is at $500, where customer leave for other service providers.

The study concluded that when fraud occurs, victims experienced an increased level of uncertainty and anxiety. Even when banks compensate all customer losses, it can still impact the users’ relationship with the firm.

Patrons are holding their service providers accountable for unpleasant experiences. I think it is human nature that the users still generally blame the bank (or whatever institution) as having some culpability. Incidents studied included the theft and misuse of customer’s data, that led to fraudulent transactions. When the total impact approaches the $500 mark, there is an increase in customer’s jumping ship.

I only see this trend becoming stronger. Inherently, we all don't like bad experiences and expect our service provider to make everything perfect. Customers want to feel an extra measure of trust when dealing with a financial institution that oversees their assets. People will hold them accountable for situations which undermine trust, even if they are not the initial cause. The message to banks and all other service industries, is for them to realize they will be on the hook and must include better customer protection in order to remain competitive.

Banking Customers Will Leave if Faced with Cyber Attacks

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