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Consumers Need to Know About Corporate Data Breaches in a

Timely Fashion

Breach notification laws & regulations are necessary

By Tom Feige ,CEO of idRADAR

Consumers everywhere strongly expect their personal data will be valued and protected no
matter where the merchant is located. Unfortunately, this is not often the case given the
recent rash of so-called “mega’ breaches that are besieging our area, the country and the
world like the eBAY breach just a few weeks ago. Consistent laws and regulations on data
security need to be formulated and followed nationwide.

idRADAR’s own research indicates that nearly 80 percent of people who have had personal
data exposed, ignore the threat while those companies that have been breached often mask
the data theft by making announcements only in two states which require immediate public
awareness. Without a national breach notification law, millions of Americans don’t know of
their risk of exposed personal information nor can the appropriately protect themselves.

Corporate data breaches and personal identity thefts are now global phenomena that are
imperiling the financial integrity of our entire society and culture. Believe you’re safe? Think
again. No one is 100 percent safe from the best efforts of the best hackers representing
some of the world’s worst criminal organizations.

The truth is many of the leading corporations, retailers and government organizations are
only now beginning to understand the depth of these threats and the unwavering
commitment of these perpetrators to attain wealth achieved through the theft of your most
intimate personal information and financial records.

Another complication involves the crazy quilt of data breach notification procedures that lack
definitive federal standards and constitute a mish mash of varying state laws and US
territorial regulations. In addition to making it tough for consumers to learn their data has
been compromised, this landscape also presents a massive challenge to companies and
organizations as they attempt to understand their legal obligations.

This creates complication and delays even for those organizations with the greatest intent to
alert customers immediately after identifying threats and their potential damaging effects.

Then again, there are the actions of retailers such as Michaels Stores that make the case for
stiffer and mandated regulatory practices when breaches occur. Michaels announced it
might have a problem on January 25, 2014 but did not confirm the details until April 17,
2014—a 12 week delay.

In fact, the company only announced an investigation was in the works after news of the
problem leaked to the media. In all, three million payment cards were compromised—some
of them a full year ago.

52 Cyber Warnings E-Magazine – July 2014 Edition
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