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[ISN] Businesses More Concerned With Reputation Than Fines
By Tony Bradley
July 20, 2011
There has been an epidemic of data breaches in recent months, prompting
action in the United States Congress to introduce new legislation to
protect consumer data. A recent survey, however, found that most
businesses are more concerned with their own brand integrity and
reputation than whatever punitive damages might result from compliance
The Secure and Fortify Electronic Data Act--better known as the SAFE
Data Act, is currently making its way through the United States House of
Representatives. If passed, the legislation will create a national
framework for information security and data protection, along with
national laws governing disclosure when a breach occurs.
Testifying before a House subcommittee in June, BSA President and CEO
Robert Holleyman, said "It requires organizations that hold sensitive
personal information to implement reasonable security procedures. It
creates market incentives to adopt strong security measures. It ensures
that consumers will be notified when a breach puts them at risk of
identity theft, fraud or other unlawful activity," adding, "By creating
a uniform, national framework that preserves an enforcement role for
state authorities, it also streamlines compliance burdens. The net
effect will be good for businesses and consumers alike."
On the other hand, a recent survey conducted by jointly by CyberSource
and Trustwave reveals that businesses are not intimidated by
legislation, or concerned about financial penalties associated with
compliance mandates and regulations. What businesses are concerned with
is their own reputation and the integrity of their brand.
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