Data Leaks For Dummies®

Chapter 4. Data Loss and You

In This Chapter

• Understanding the consequences of data loss

• Considering the effect of direct losses

• Accounting for indirect losses

• Disclosing data loss because you have to

• Taking a look at the enemy — cyber-crime

• Figuring out the value of your data

Pretty much every week we hear about this company and that organization mislaying customer records or employee personal records, or perhaps millions of credit-card details. Many of these incidents come back to haunt everybody who has a credit card, in one way or another, in the ensuing weeks or months (or perhaps years).

Risks and Consequences of Data Loss

Technology can't help understanding the risk and specific associated with a data loss incident. The implications fall into two categories:

• Direct losses: These are easily measured.

• Indirect losses: These are tough to measure, but carry the most consequence.

Direct losses

The direct losses associated with a data loss can be measured. Here's a basic list of these costly consequences:

• Fines and settlements: For TJX Companies, Inc., the fines and settlements are ongoing. Just one of the settlements was for $40.9 million, and involved having some financial institutions help with the ongoing costs.

  But because it was credit-card information that had been lost, credit-card companies were — and are — still at risk from potential fraud; compensation had to be paid, in part to help fund additional investigation into requests for new credit cards.

• Litigation: Class-action lawsuits ...