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Brands Beware! Strengthen Data Privacy or Pay a Hefty Price

By James Barham, CEO at PCI Pal

Historically, brands that fell victim to a data breach were forgiven by US consumers. But as cyber attacks
and fraud rates have ballooned, it has become clear that the implications of a data breach reach further
than once suspected. Rather than solely impacting a brand, consequences extend to consumers and
their family and friends, as evidenced by the hack of the Office of Personnel Management.

The goal of a security breach is typically to gain access to sensitive and restricted data. Last year’s
massive Equifax hack resulted in criminals stealing 145 million Americans’ personally identifiable
information, including social security numbers, birthdates, addresses, drivers license numbers, as well
as tax identification numbers (all of which can be used to steal a person’s identity). Given the flood of
data breaches and the introduction of data privacy regulations such as GDPR, it’s undeniable that the
value of data has increased in the digital age. Consequently, consumers have come to realize that brands
should be responsible for protecting the data they collect at all costs or risk reputational and/or financial
backlash.

This shift is certainly justified. In July, the Identity Theft Resource Center reported an astonishing 668
security breaches executed in 2018. The influx is the equivalent of around four breaches per day for a
year. In response, consumers are threatening to take their business and loyalty elsewhere if they feel
that a brand isn’t prioritizing the protection of their data.

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