When it comes to data breaches, individuals and businesses are not seeing eye-to-eye. Executives are erroneously confident about their ability to tackle cybercrime, but their customers are growing ever more concerned about the safety of their personal data.

The over-confidence of UK industry is puzzling especially when recent research has revealed that nearly one in five businesses have been hit by a data breach in the last two years. In 2014 alone around 110 million pieces of personally identifiable information were traded illegally online by fraudsters.

With data breaches becoming headline news it is clear that people already recognise the severity of this threat. Yet business leaders remain confident that their own systems are up to the task, despite a series of high profile breaches in the last few years.

The likelihood is that the situation will get worse before it gets better and in truth, many UK businesses are unprepared. Businesses that have developed a comprehensive data breach plan are few and far between and there is very little information out there for businesses who are looking to plan a response. How many data breach plans in place also include a specialist crisis communication plan or legal support at the ready? All of these factors that need to be considered are often overlooked.

It is often the case that companies are only jolted into action when a breach has occurred and the damage to consumer confidence has been done. In these cases it is paramount that an effective plan is put into place and security becomes the priority. In the long term a company may be able to salvage their reputation following a breach, however if they were successfully breached for second time that would be difficult to come back from.

Data breaches are particularly damaging because people are unforgiving. The increasing number of British adults who have had their personal information compromised are indeed victims, but businesses who fail to safeguard data find the blame pinned firmly on their shoulders.

Individuals in these cases are strong in their condemnation. They view the loss of their personal data as an organisational failure; a failure of procedure, security and data control. Executives should pay heed to the ripple effect that would occur when large majorities who leave an organisation that was breached would also warn family and friends against ever being a future customer.

Poor consumer confidence will lead to a tainted reputation, and ultimately a loss of business. Businesses would do well to remind themselves of the old adage: the customer is always right. Over-confidence is not only misplaced, it is also damaging to the bottom line. Proper investment in a data protection and a breach response plan is vital, and any strategy must be firmly focussed on minimising the impact of losses on customers.

The commercial importance of tackling data breaches is clear, and business heads will find that the investment is worth every penny.