According to new research from IT support provider Probrand, almost all UK citizens lose trust in a company that experiences an IT failure or a similar technical difficulty.
Polling more than 1,000 UK residents, Probrand found 89 percent said they would lose trust in an organisation following a technical incident.
Banks potentially have the most to lose, as half (51 percent) would consider switching to a different provider after an IT failure, and 43 percent said they felt their money wasn’t safe with such an institution.
But it’s not just about inconvenience and the potential of data theft – these incidents can impact loan prospects and credit card applications as well. Almost two-thirds (64 per cent) of those who checked their credit report after a technical failure discovered errors on their records.
The number of IT failures and technological issues among banks is also growing rapidly. The Financial Conduct Authority has reportedly recorded a 300 percent increase in technology issues between 2018 and 2019.
“For smaller businesses it is critical to invest in digital security to ensure that software is regularly updated, internet threats are kept at bay and employees are trained to adopt a ‘zero trust’ mentality, particularly when it comes to email," said Matt Royle, Marketing Director at Probrand.
“Often companies don’t realise their IT systems and infrastructure have been penetrated and their business-critical data compromised, or they discover it too late. At which point, for many, it is a disaster recovery scenario, where businesses are simply looking to recover to an operational position with minimal disruption.
“Naturally, short term ICO fines can be applied for data loss, but it is the long term damage to brand perception and trust that our survey emphasises must be taken into consideration when prioritising investment in security services and solutions."