The world’s top-100 brands could see a whopping $223 billion getting wiped off their brand value due to data breach, according to a report.
A joint cybersecurity and brand value impact report by Infosys and Interbrand on Tuesday said the top 100 most-valued brands could face up to $223 billion of their brands value from a possible data breach. The report did not name the top-100 brands.
The potential loss from data breach is on the presence and affinity of and trust on the brand. Those in technology, financial services and automotive sectors could suffer a higher overall brand value at risk from data breaches, while luxury brands and consumer goods face greater value at risk as a percentage of their net income.
Of the total possible value erosion, technology brands could lose the most up to $29 billion brand value risk, followed by consumer goods up to $5 billion in brand value risk, automotive up to $4.2 billion, financial services up to $2.6 billion, and luxury goods up to $2.4 billion.
Vishal Salvi, chief information security officer and head (cyber security practices) at Infosys said that cybersecurity for long was seen as a cost of doing business. “However, in this digital age, where a company’s reputation is based on its ability to protect customer data and establish digital trust, cybersecurity is becoming a business differentiator.”
Ameya Kapnadak of Interbrand India said there is a fundamental shift in how brands engage with their customers. As the lines between physical and virtual worlds increasingly blur, and brands rely more and more on the digital world to create unique experiences for customers, data breaches have the potential to dent the core of the brand’s relationship with its customers.
The report said as much as 85 percent of customers would not deal with a brand after a data breach, while 65 percent customers would lose their trust in the brand in the event of a data breach.