Data breach: Effects on Business

October 29th, 2013 by admin Leave a reply »

A data breach is a traumatic experience for every person involved, and it can have negative long-term effects. Your business may deal with loss of revenue from customer turnover and brand mistrust for months or years.

According to a survey, two-thirds of adults in US would not return to business if their personal information was stolen. The survey further provides insight into what types of businesses consumers would most likely stop doing business with if their confidential information was stolen.

“With every data breach comes a cost, including lost productivity, a damaged reputation, and most importantly, decreased revenue when customers take their business elsewhere. This research confirms that by failing to make security a priority, businesses can discourage once-loyal customers from returning. It could also stop potential customers from ever patronizing your business.” said John Otten, marketing manager at Cintas.

Banking, healthcare and lawyers as being under the most scrutiny by people When asked which types of organizations patrons would stop doing business with if their personal data were compromised. More than 55% said that they would change their banks and 39% would get a new lawyer. 46% said that they would switch insurance companies, 42% would go to a different drug store/pharmacy and 40% would get a new doctor or dentist. 35% said that they would not return to their hospital.

Consumers want to know if their money is in safe hands and going to where it is intended when they give to a cause. Accordingly, 38% said they would donate to other charity/non-profit organization, while in the event of a breach, 24% said that they would no longer donate to educational institution they attended.

The survey comes as data breaches continue to be reported, and are being perpetrated via a number of vectors.

A former Broward Health Medical Center employee took documents containing the personal information of nearly 1,000 patients from the Fort Lauderdale health system. The records contained names, addresses, dates of birth and insurance policy numbers.
About 960 patients, treated at Broward Health’s main facility, were notified via letters. These simply informed them that their registration documents had been “inappropriately removed.”

Alertsec strengthens security

Alertsec has created a web based encryption service that radically simplifies deployment and management of PC encryption by using industry leading Check Point Full Disk Encryption (former Pointsec) software.

Organizations, especially corporate giants, have to have an information security policy in place that proves they have taken necessary steps and measures to safeguard the information they gathered. If these policies are not adhered to, the regulators may prosecute.

Alertsec Xpress is used by organizations that have recognized the need to protect their information. Customers range from single-user sole traders and consultants to multinational companies with a large number of offices around the globe. Over 4 million users worldwide use Alertsec Xpress’s Check Point Full Disk Encryption.

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