Companies Shift Data Breach Costs to Customers, Sparking Backlash Concerns

A recent IBM report indicates that 63% of companies plan to pass the costs of data breaches onto customers, up from 57% the previous year. This trend highlights a growing reliance on consumers to absorb the financial burden of security failures, though the report does not detail how much will be transferred. Experts underscore the importance of transparency in communicating these changes to avoid potential backlash via social media. Additionally, this situation may provide Chief Information Security Officers with leverage to secure more funding for cybersecurity initiatives, as rising breach costs could justify greater investment in security measures.

Opens on CSO Online