A New Year’s resolution for CEOs

“I am going to take cyber security seriously in 2016.”

On the whole senior executives claim that they want to act in an ethical manner. And yet if they fail to embrace cyber security they are clearly lying.

Why do I say that? Because playing fast and loose with customer data wrecks lives. It is as simple as that. Lose your customers’ data and you expose them to a major risk of identity theft – and that can and does cause people massive personal problems.

The problems that David Crouse experienced in 2010 are typical. When his identity was stolen he saw $900,000 in goods and gambling being drained from his credit card account in less than 6 months. His credit score was ruined and he spent around $100,000 trying to solve the problems.

Higher interest rates and penalty fees for missed payments just made his financial situation worse. His debts resulted in his security clearance for government work being rescinded. Having lost his job, other employers wouldn’t touch him because of his debts and credit score. He felt suicidal. “It ruined me, financially and emotionally” he said.

Data breaches frequently result in identity theft. And this can have a devastating emotional impact on the victims, as it did with David Crouse. Research from the Identity Theft Resource Center  indicates that 6% of victims actually feel suicidal while 31% experience overwhelming sadness.

The directors of any company whose negligence results in customers feeling suicidal cannot consider themselves to be ethical.

Unfortunately most data breaches that don’t involve the theft of credit card details are dismissed by corporations as being unimportant. And yet a credit card can be cancelled and replaced within hours. A stolen identity can take months, or longer, to repair.

And all sorts of data can be used to steal an identity. An email address and password; a home and office address; the names of family members; a holiday destination; a regular payment to a health club… Stolen medical records, which are highly effective if you want to steal an identity, will sell for around £20 per person online, while credit card details can be bought for as little as £1. Go figure, as they say in the USA.

Organisations must accept that any loss of customer data puts those customers in harm’s way. And if they want to be seen as ethical they must take reasonable steps to prevent data breaches. Until they do, well the EU’s new data protection rules can’t come on-stream quickly enough for me!

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