This paper investigates the local depositor’s response to bank-level cyberattacks by examining changes in deposit behaviour at the branch level across U.S. counties from 2010 to 2023. Using a difference-in-differences (DiD) framework with a propensity score-matched sample of attacked and non-attacked banks, we find that cyberattacks lead to significant deposit outflows at affected bank branches, despite the centralized nature of the incidents. Importantly, we document a concurrent increase in deposit inflows to competitor banks within the same county, indicating localized trust erosion and depositor switching behaviour. We further show that depositor responses are highly heterogeneous across local environments. Deposit withdrawals are significantly amplified in counties characterized by stronger information spillovers, higher uncertainty avoidance, greater media and digital connectivity, and higher financial literacy. The effects are also stronger for branches located closer to the bank’s headquarters, where reputational salience and perceived exposure are higher. These findings highlight the spatial and local heterogeneity in depositor sensitivity to cyber risk and highlight the importance of tailoring cybersecurity communication and risk management strategies to local contexts.