According to two surveys conducted by Ponemon Institute under sponsorship of PGP Corp, there’s a high cost to be paid by businesses that suffer security breaches in which sensitive customer data they hold is lost. Not only are the costs high in terms of internal investigations and legal fees, there are indications that customers are taking notice of these security incidents involving their personal data by terminating their accounts or otherwise ending the business relationship.
Corporations that require personal information in order to do business, and/or interact with their website/company, need to wake up and smell the coffee!
It is very important to keep customer data safe if they wish to retain customers.
Having to be forced by laws, such as those in California, instead of making sure clients/customers are aware of any security breeches voluntarily, makes it even harder for clients/customers to trust companies who appear to only be concerned with their own ‘public’ image instead of making sure their client/customer data is safe.
I know this puts them between a rock and a hard place, but which side would they be better off erring on in the long run? If client/customers refuse to do business with them, how long before their company is no longer viable?
Thanks Dwaine for some great information on this and other security related topics.