The Price of Doing the Right Thing

Economics of Information Security and Personal Privacy Failures

August 20, 2014

Information Security is not free. Personal Privacy is not free. Securing company intellectual property and infrastructure has an impact on earnings. However, rarely does a data breach or data loss have a large impact, except perhaps on individual careers, but that is rare.

Government Regulations that require fines for improper handling and data breaches have such small amounts due that large corporations just consider that the cost of doing business. Smaller companies pack up, change their name and reopen.

Inter Corporate fees due from the improper handling and loss of data can be large, but again, so small that large companies are not impacted and smaller companies can either change their payment strategy or incorporate with a newer strategy.

Target is perhaps the most known example. A large impact, economically and to their customers. Of course they are still in business and ironically they still accept credit cards as payment. I am not arguing for more stringent penalties There are many other company examples I could have used, some you may be surprised.

There are few businesses where their economic interest ties directly with an individual’s personal privacy and security interest. This is not a problem that government oversight or corporate interaction has been shown to solve.

So, be a good steward of your own personal data and trust only those companies who have a vested interest in protecting their customers.

Now where did I put my list of trusted companies?

.wdnii.

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