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Backoff, Dairy Queen, UPS & Retail's Growing PoS Security Problem
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aws0513
aws0513,
User Rank: Ninja
8/28/2014 | 9:22:20 AM
Re: Brand reputation
I have seen this corporate finger pointing technique in both the private and public sectors for years.

Almost every time, the public will connect/attribute the brand to the breach problem, not the franchisee or contractor.  Occasionally, the brand can brush off the connection if the problem has particulars regarding specific employees or activities at a specific facility or area.  But when a problem is pervasive across multiple stores or facilities, the brand CANNOT avoid the attribution no matter how many statements they may make.

To me, this is a classic example of poor executive decision making where the management mindset is to divert blame away from the crystal corporate palace.

For me, I would have more confidence and respect for any organization that is willing to stand up to the problem at hand, accept blame even if it really isn't their fault, and attest to (and follow through with) broad measures focused on full and proper remediation.
Stratustician
Stratustician,
User Rank: Moderator
8/28/2014 | 9:19:35 AM
Re: Brand reputation
I agree Marilyn, the corporate headquarters of these brandsmust be responsible for pushing down security guidelines or requirements to each of these franchises.  While it's easy for them to say "well, it's the fault of that particular franchise", the reality is yes, as you mentioned, it's the entire brand that will suffer the fallout when the public decides that they would not rather deal with these companies as they don't appear to value the privacy and security of their customers.  Passing the responsibility around is never going to fix the real issue, that security controls must be incorporated into these sytems.  Perhaps it will come down to legislation to protect the consumer.  While PCI attempted to do this, there is still very little backlash when these events occur.
Marilyn Cohodas
Marilyn Cohodas,
User Rank: Strategist
8/28/2014 | 7:36:36 AM
Brand reputation
It's unfathomable to me that franchisors are passing the security buck to their independent franchisees. As a consumer, when I go to a UPS store or a Dairy Queen, do I think of the retailer as a small independent business? Of course not. It's the brand reputation that is at risk in the case of a security breach. Unbelievable!
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