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Many Businesses Fail To Disclose Data Breaches
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Stratustician
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Stratustician,
User Rank: Moderator
3/22/2014 | 12:03:57 PM
Re: No doubt.
The problem is that there is such a stigma attached with being breached (rightfully so), that unless they are mandated by the government or law enforcement, organizations have zero incentive to notify customers that there has been an incident. It's about balancing corporate image and brand and the safety of their customers.  Many organizations feel that it's better to keep these incidents under wraps unless they are forced to admit there was an incident for fear of brand damage and customer fallout.  On the other side, as a consumer, I have to accept that these things happen. Ofcourse no one wants to be involved in these incidents from a liability side, and I am reminded every time I have to change a password or a PIN due to an incident, but the reality is that I'm a lot less critical of a company if they proactively tell me they had an incident, as opposed to those who hide it.  These things sadly happen, and the reality is that these attacks are so sophisticated it's almost impossible to protect against (ofcourse there are exceptions to this, many breaches are caused by bad security practices too), but I think companies underestimate consumers if they think hiding an incident is a better choice than proactively telling their customers "sorry, we screwed up, but at least we're being honest".

Customers will forgive and forget if they feel they were respected.  
pfretty
50%
50%
pfretty,
User Rank: Apprentice
3/21/2014 | 11:47:55 AM
No doubt.
Cyber crime is increasing in volume -- up twenty percent in 2013 according to the HP Ponemon Cost of Cyber Crime Report (http://www.hpenterprisesecurity.com/ponemon-study-2013). At the same time the cost of attacks is up 30 percent as well. This should be a spotlight on the importance of having more intelligence based strategies in effect. 

Peter Fretty, j.mp/pfrettyhp


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