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By: Luis Serpa

 

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Security Breaches: Trash to Treasure?

Posted by on September 13, 2006 - 4:15 AM
 

Moneyintrashbasket Several shocking security breaches, compromising the personal data of millions of customers, have been reported lately.
Below are just a few of the most flagrant cases:

- Chase trashes 2.6M customer files
- Second Lifers’ ‘first life’ hacked
- Wells Fargo leaks personal data
- AT&T deceptive on data theft

What amazes me about these breaches is not only the scope and impact of the leaks, but the way in which they occurred. Most of them have been caused by an improper use of data by employees (like the now infamous case of the US Department of Veteran Affairs). Others were caused by losing control of how personal data was handled by companies’ partners or vendors. Chase’s customer data was mistakenly thought to be trash and thrown out. Quite a treasure trove for identity thieves.

Although most corporate reactions to leaks have improved by becoming more forthcoming and transparent, the breaches are still a huge blow to costumers’ trust. How can anyone believe a website’s Privacy Policy or the company’s Safety Statement when such egregious security gaps abound.

Transparency is good, critical even, but is not enough. Sooner or later, companies will have to start taking security lapses seriously. And it better be sooner, because as the saying goes: “The road to hell is paved with good intentions.”

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