Cyber security affects consumer holiday spending

Fifty-eight percent of consumers are unsure or not confident at all in the security of their personal information when shopping. Specifically, 58 percent are unsure of in-store security and 63 percent are unsure of online security, according to KPMG's 2014 Holiday Shopping Survey.

In fact 27 percent of shoppers will check other stores before settling to buy a product from a retailer that previously experienced a cyber attack and 8 percent would not shop at these retailers at all.

Kmart, Bass & Co., Dairy Queen, Home Depot, Sally Beauty, Michael's, Supervalu and of course Target. The list of retailers reporting breaches just keeps growing.

"Retail executives need to first and foremost protect the brand and ensure that cyber security is prioritized based on the evolving threats of today and the risk of the company," said Tony Buffomante, partner and retail cyber security lead at KPMG. "Cyber security isn't just a retailer's IT department issue anymore–it has become a board room issue."        

Although cyber security also raises red flags among executives in the retail industry, retailers are still focused on making consumer transactions as easy as possible. Therefore, in another recent KPMG survey, 77 percent of retailers said they shared their customers' personal and payment information across all channels to make the shopping experience easier.

"Retailers should prioritize cyber-security risks in accordance with the changing threat landscape and the risks to their customer information," said Buffomante. "They can do this by participating in industry forums to share cyber-security threat information (RILA, for example) and by implementing processes, technology and training for employees to protect consumer credit cards and personal information."

For more:
-See this KPMG press release

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