Some companies unable to secure your data
It’s sad, but true. Some companies are just plain irresponsible with your data. Whether it be credit card information, or address and phone number there are those that aren’t good about keeping their databases private. The securityfix is reporting that a recent survey found 12% of people had been notified by companies that they did business with over a breach of security resulting in data loss. Apparently 20% of those, closed accounts subsequently.
Companies claim an average loss of 2.5%, ranging as high as 11%. In some cases, we have limited choices, but I would be eager to track down alternative choices if a company I had accounts with “lost” my data to information thieves.
Also, in another survey it’s said the cost “TO BUSINESSES” for a security breach averages around $14 million. (I wonder how much it winds up costing customers in time spent changing account information, calling credit companies to notify of suspicious charges from the breach… I doubt there’s any way to put a price on that…) Businesses were found to be four times more likely to lose customers if they failed to inform them of the breach in a prompt manner. Which I think is good to see, maybe that can be encouragement to companies to come clean once they discover something is wrong.
I have respect for companies that respond quickly to even suspected security breaches. As well, it’s a mark of character I think for them to fess up and detail to customers what has been found and what is being done to solve it, even if it’s a relatively minor issue. I remember an incident recently with Verizon wireless’ website, where a programmer had discovered that once logged in it might be possible to get other users account information. Verizon responded very quickly with an audit of their pages, closing that flaw and finding and fixing one or two others. I was somewhat impressed. (Unfortunately, I rather expected more of a “what was he trying to do” point the finger of blame elsewhere approach.)