New research from communications firm Porter Novelli and Quantum Market Research has sounded the alarm on the long-term damage to brand reputation caused by data breaches. The study reveals that businesses are not acting swiftly enough to preserve customer trust in the aftermath of such incidents, risking significant reputational harm.

According to the research, nearly half of all Australians are aware they have been impacted by a data breach in the past 12 months. The human toll of these breaches is significant, with almost half of those affected experiencing emotional distress and 30% having to change ID documents as a result.

Rhys Ryan, CEO of Porter Novelli Australia, warns that data breaches are now an inevitability and organisations must prepare to respond in a way that aligns with their stated values. "Organisations need to consider the human experience of having personal information stolen and act quickly and in line with their communicated values to retain trust," Ryan said.

The research also reveals a worrying lack of faith in companies' data protection efforts. Only four in 10 Australians feel that companies are doing enough to protect their personal information, suggesting a significant trust deficit that businesses need to address.

However, there is a silver lining for companies that handle data breaches well. The research shows that 44% of Australians would use a company again if it responded well to a data breach, and more than one-third would recommend it. This underscores the importance of a swift, transparent, and empathetic response in the wake of a data breach.

In an era where data breaches are increasingly common, this research serves as a stark reminder for businesses to not only bolster their data protection measures but also to ensure they have a robust response plan in place. As Ryan emphasises, a data breach is not just a technical issue but a human one, and companies need to respond in a way that respects and acknowledges the human impact.