Violation of the Psychological Contrac
Posted: Tue May 20, 2025 8:37 am
Increased Customer Caution: Even if customers don't abandon a service immediately, they become more cautious. They might:
Hesitate to share sensitive information online.
Avoid saving payment details.
Demand higher security measures (e.g., strong 2FA). This caution can slow down digital business operations, especially for e-commerce and online service providers, impacting the overall digital economy.
Reputational Damage and Negative Publicity: Data breaches generate substantial negative media attention, both traditional and social media. News travels fast, tarnishing a company's brand reputation overnight. This negative publicity, coupled with a loss of consumer trust, can cause irreparable damage, affecting customer acquisition and investor confidence.
Impact on Personalization Efforts: Companies increasingly rely on consumer data for personalized marketing and customer service. However, if a breach occurs, consumers become less willing to engage with albania phone number list personalized offers, which can hinder a company's ability to drive sales and customer satisfaction through tailored experiences.
II. Decline in Public Trust in Government Institutions
Data breaches involving government entities, as seen with the 2023 Bangladesh Government website data breach that exposed millions of NID-linked phone numbers, strike at the core of public confidence.
t: Citizens implicitly trust their government to safeguard their personal data. When a breach occurs, this "psychological contract" is violated, leading to feelings of betrayal, vulnerability, and a fundamental erosion of trust. This is particularly potent in Bangladesh, where the NID is tied to numerous essential services, making its compromise feel deeply invasive.
Undermining Governance and Service Delivery: If citizens lose faith in the government's ability to protect their data, they may become reluctant to engage with digital government services, hindering initiatives like e-governance, digital tax filing, or health services. This can slow down progress towards a more efficient and transparent administration.
Hesitate to share sensitive information online.
Avoid saving payment details.
Demand higher security measures (e.g., strong 2FA). This caution can slow down digital business operations, especially for e-commerce and online service providers, impacting the overall digital economy.
Reputational Damage and Negative Publicity: Data breaches generate substantial negative media attention, both traditional and social media. News travels fast, tarnishing a company's brand reputation overnight. This negative publicity, coupled with a loss of consumer trust, can cause irreparable damage, affecting customer acquisition and investor confidence.
Impact on Personalization Efforts: Companies increasingly rely on consumer data for personalized marketing and customer service. However, if a breach occurs, consumers become less willing to engage with albania phone number list personalized offers, which can hinder a company's ability to drive sales and customer satisfaction through tailored experiences.
II. Decline in Public Trust in Government Institutions
Data breaches involving government entities, as seen with the 2023 Bangladesh Government website data breach that exposed millions of NID-linked phone numbers, strike at the core of public confidence.
t: Citizens implicitly trust their government to safeguard their personal data. When a breach occurs, this "psychological contract" is violated, leading to feelings of betrayal, vulnerability, and a fundamental erosion of trust. This is particularly potent in Bangladesh, where the NID is tied to numerous essential services, making its compromise feel deeply invasive.
Undermining Governance and Service Delivery: If citizens lose faith in the government's ability to protect their data, they may become reluctant to engage with digital government services, hindering initiatives like e-governance, digital tax filing, or health services. This can slow down progress towards a more efficient and transparent administration.