Younger customers more likely to leave FS provider after data breach

Younger customers are most likely to stop using financial firms that suffer data breaches, according to research among over 2,000 UK adults.

Cyber security services firm Predatech has released its British Cyber Security Survey 2021, which found that 68 per cent of customers aged 18-24 were “likely” to stop using a financial firm if it suffered a breach.

Consumers as a whole were asked how likely they would stop using retail, financial and social media businesses should they suffer a data breach.

The findings showed 8 per cent were “very likely” to stop using a retail business that suffered a data breach, rising to 12 per cent when asked about social media platforms and 21 per cent when it came to financial firms.

Consumers aged 18-24 are far more likely to stop using a financial business if it suffered a data breach compared to other groups though - with 25 per cent saying they were “very likely” and 43 per cent “somewhat likely” to ditch that firm.

This combined 68 per cent figure compares to the average combined number of 55 per cent across all consumers.

But younger customers are prepared to cut social media platforms a lot more slack.

Just 7 per cent said they’d be “very likely” to stop using a social media platform that had suffered a breach - even though such breaches can be used to attack financial accounts when the same passwords and other credentials are used.

Overall, the survey found that while 65 per cent believe they are well prepared against harmful cyber activity, 78 per cent expect threats to increase over the coming year, rising to 88 per cent among consumers aged over 65.

In the 18-24 group, a lower 71 per cent believe the cyber security threat will increase in 2021, and just 57 per cent believe they’re well prepared to protect themselves against cyber attacks.

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