How safe is the confidential customer information your company keeps? The Privacy Rights Clearinghouse says that, since February 2005, the personal information of 88 million people has been compromised by data security breaches at companies or government agencies.
Although some significant data security breaches involve computer hacking by outsiders, a surprising number of breaches are the result of insider conduct—either intentional information theft or, more commonly, employees’ casual handling of confidential information about customers and other employees.
The effect of a data security breach on a business can be significant. Legal claims against companies from which identifying information has been stolen are increasing. Most cases claim that a company failed to take reasonable steps to safeguard personal information, or that it falsely represented that personal information would be protected.
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