Quality protection of data

Share this article:
Quality protection of data
Quality protection of data
I believe that doing things right the first time adds nothing to the cost of a product or service. What incurs cost  is doing things in a way that requires reworking – a cost that translates into wasted time, money, litigation and loss of reputation.

Massive data security breaches at retailers, such as The TJX Companies and more recently at the Hannaford supermarket chain, are a good case in point. In both instances, significant amounts of financial data were compromised by hackers, potentially exposing millions of consumers to credit card fraud. And in both cases, multiple lawsuits were filed shortly after the data intrusions became public.  

Circumstances surrounding the Hannaford breach, which exposed up to 4.2 million card numbers, are still surfacing. Yet, more than a year after TJX disclosed the largest credit and debit card data breach in history, banks continue to file lawsuits claiming damages due to card reissuance costs, monitoring expenses or fraud loss. That's on top of millions of dollars in charges TJX has already taken against earnings, plus up to $40.9 million for breach-related losses that TJX agreed to pay Visa in a settlement reached last fall. TJX has spent or set aside about $250 million for costs related to the breach in the past year. But that doesn't include lost business or reputational costs.

According to the Ponemon Institute, data breaches cost companies an average of $197 per record in 2007, and the average cost of a data breach was $6.3 million, up from $4.8 million in 2006.

If responsibility for shoring up a company's defenses against data leaks falls into your camp, ask yourself, “Does this solution conform to best practices for encrypting payment data? More fundamentally, are we storing and safeguarding that data in the best possible way? Or does outsourcing to software-as-a-service professionals make more sense than doing it ourselves?” In an era of continually cheaper data storage options, it's easy not to think critically about how much data should be retained, where it makes the most sense to store that data, and how best to protect it – until it's too late.

By defining quality you'll help build a culture of security awareness and responsibility that extends from the executive suite to the receptionist and all points in between.
Share this article:
You must be a registered member of SC Magazine to post a comment.

Sign up to our newsletters

TOP COMMENTS

More in Opinions

Heartbleed, Shellshock and POODLE: The sky is not falling

Heartbleed, Shellshock and POODLE: The sky is not ...

While it may seem like 2014 is the year of the vulnerability, in reality, this year has not been much different than years past.

Technology alone isn't going to secure IoT connected devices

Technology alone isn't going to secure IoT connected ...

It's clear that vulnerabilities continue to exist, despite our best efforts to combat them. In fact, we have addressed many of the same problems before.

DDoS is the new spam...and it's everyone's problem now

DDoS is the new spam...and it's everyone's problem ...

As new solutions emerge, it's critical for organizations to protect themselves by being informed, aware, and acting whenever possible. Those that don't take action are playing a very dangerous game.