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IDSafeBIZ

The threat to corporate networks, and the information contained on those networks has never been greater.  Whether it is accidental or malicious, a missing paper file, stolen laptop or hacked computer database, learning you have just had a data breach is cause for immediate concern. 

As we have seen in the news media sometimes your Data Breach can be caused by a third party in whom you trusted personal sensitive information.  Depending on your next move, your organization may quickly draw the attention of media.

We hear about them almost daily and they compromise the personal identifiable information of people.  They sometimes lead to identity theft or medical, criminal or synthetic identity theft or other crimes of fraud, such as, utilities, employment or government documents fraud and the list goes on.  Each of us wonders if we will be the next identity theft victim to suffer through this issue due to a data breach.

Organizations that experience a data breach pay a heavy price when they fail at protection the consumer’s valuable personal information.  Here are a few ways an organization is affected:

• Damaged Reputation – This is a huge negative impact.  An impact that could be so huge, that it can really not be calculated due to the potential loss of customers and business, loss of vendors and associates and more.  In time this could result in the financial devastation of the organization. 
• Direct Financial Cost Incurred Due To The Breach - This cost can grow into a large dollar amount rather quickly.  It may include; system analysis and redesign, legal expenses, cost of law suites, cost of notifying those individuals affected, and the cost of providing ‘services’ to those affected.  It is this cost of services where an organization does not have time to shop for the best price nor or they really informed to what certain services really do and do not do for those affected. 
• Failure To Notify – Some organizations may put off or delay making public a data breach fearing the bad press and cost involved.  Fines in these cases can be substantial. 
• Other Types of Fines – Fines can range from federal fines for mishandling data to submitting to external audits for years to come.

Understanding What Services Really Do

Since organizations that experience a data breach must respond quickly, they usually do not have time to understand what a service will really does and does not do for those individuals affected nor do they have time to shop for the best price.  For Example:

Fraud Alerts – What They Do and Don’t Do

• What They Do

• What They Do Not Do

Credit Monitoring – What It Does and Does Not Do

• What It Does

• What It Does Not Do

Identity Scoring or Identity Monitoring – What It Does

• Regular scanning of national databases looking for anomalies in the use of a person’s name, social security number, and address, alone or in any combination with other personal data.  It is these national databases that hold the key for early detection for possible identity theft.  The databases include; credit bureaus, public records, large data aggregators (such as Choicepoint), large credit companies, non-credit loan companies, several large insurance companies that also makes available limited access to medical information.  With this system, it may be possible to stop identity theft before the damage is done!  Accordingly, this service is becoming one of the key components in the fight against identity theft damage.

Fully Managed Recovery – What It Does

• This is the most important element of any service from the viewpoint of those affected by a data breach.  If they became an Identity Theft Victim due to an organization mishandling their personal identifying information, fully managed recovery means that their recovery back to pre-theft status will be totaled handled for them.  They do not have to take their time writing letters, making phones calls and more to solve their problem.  While the organization did not expect the data breach, they respond to it by offering those affected with the ultimate solution.

These charts courtesy of Neal Walters

 AARP Public Policy Institute