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Agencies Brand Safety Brand Strategy

Invisible Tech. Real Impact: Up to $223b of the world’s top 100 brands’ value could be at risk from a data breach

March 3, 2022 | 5 min read

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Strong brands influence customer choice and create loyalty. With recent digital revolutions, these brands have been exposed to deadly cyber-attacks, but what is the long-term cost of data breaches to brands and businesses?


Brands need to highlight the importance of data security

Most studies focus on the immediate effect a cybersecurity incident would have on a brand value – cost of the breach, remedies to rebuild the business, damage to a brand’s reputation and an upsurge of negative PR. However, they often overlook the fact that a single cybersecurity incident would have a huge negative impact on the mindset of consumers.

Brands need to highlight the importance of data security and upgrade their cybersecurity strategies in order to uphold trust of their customers. Infosys, in collaboration with Interbrand, has launched a study titled ‘Invisible Tech Real Impact’ that examines the long-term impact of data breaches on the value of the world’s top brands across sectors. The study reveals that the potential risk in brand value of a data breach to the world’s 100 most valuable brands could amount to as much as $223bn.

The value at risk for a brand in the event of a data breach was simulated. The team identified presence, affinity, and trust as the critical brand factors that are most impacted when a company suffers a data breach.

Findings show that in industries such as technology, financial services, and automotive, the overall brand value at risk from data breaches is likely to be higher, whereas luxury brands and consumer goods face greater value at risk as a percentage of their net income.

The report quantified the brand value risk for industries that include:

  • Technology - up to $29bn brand value risk (up to 53% of 2020 net income)

  • Financial services - up to $2.6bn brand value risk (up to 52% of 2020 net income)

  • Automotive - up to $4.2b brand value risk (up to 77% of 2020 net income)

  • Consumer goods - up to $5bn brand value risk (up to 114% of 2020 net income)

  • Luxury - up to $2.4bn brand value risk (up to 115% of 2020 net income)

CMOs, CISOs, and other decision-makers can leverage this methodology as a template to understand similar risks their brand value may face and calculate the right level of cybersecurity investment for them.

Fill in the form below to download your free copy of the report.

Agencies Brand Safety Brand Strategy

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