It’s little wonder that trust in Australian institutions has hit a five-year low. According to the latest Edelman Trust Barometer, trust levels have collapsed in the last two years across all four institutional groups covered in the survey – government, media, business and NGOs.
Let’s have a look at some of the factors at play.
The government has just kicked off a Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. The Commission is putting a spotlight on the industry following a series of scandals that have eroded trust in the system among Australian financial services customers.
On top of this, recent high profile cyber security breaches – think Uber, Equifax and Dominos Pizza – have shed light on the fact that even large companies are at risk of breaches. The consumer implication is that: there is no guarantee that your data is safe.
In the case of Equifax, one of the largest repositories of Americans’ most sensitive financial data, the massive breach occurred despite sophisticated security measures, a dedicated operations centre and antri-intrusion software. It was, it appears, implementation rather than process that let Equifax down.
Dominos is an example a bit closer to home for Aussies, with an apparent data breach in the supply chain late last year causing customer details to be leaked online. A statement from Dominos at the time said there was no evidence to suggest that there had been unauthorised access to the company’s systems, but regardless of the ‘how’, the result – erosion of trust – is the same.