After a security breach that affects third parties, guess what? The affected parties no longer hold the breached organization in such high regard. Along with reputation, trust is damaged.
Here's an example from an April 10th piece in Deseret News:
Federal officials said a former state employee who took applications from people seeking food stamps and other welfare aid worked with three others to steal the identity of Utah residents and charge tens of thousands of dollars in purchases. During a joint press conference Thursday, federal and state officials said this was the largest security breach at the Department of Workforce Services and were working to re-instate the public's trust. ... "We sincerely regret this breach of security," said DWS Executive Director Kristen Cox in a statement. "Our former employee's alleged misconduct certainly does not represent the long-standing honesty, integrity and dedication of our staff to the well being of each and every one of our customers."