Question

Give an example of a privacy breach. How did the company recover?

Answer 1

Privacy breach refers to the intentional and unauthorized access to information which is usually done by penetrating a protected computer network by a cybercriminal and thereby resulting in exposure or theft of data.

Target Corporation’s case considered to be the second-largest credit and debit card breach that lasted from November 27 to December 15. Around 70 million customer’s personal details were stolen by accessing the company’s computer gateway. Information stolen includes the names, phone numbers, email addresses, payment card numbers, credit card verification codes, etc., The reputation of the company got tarnished because of which Target decided to provide free credit monitoring services for the affected customers. $10,000 was also planned by the company to be given to the victims after a $10 million class-action lawsuit settlement reached in 2015. The company lost its reputation and trust among its customers that led to the resignation of Chief Information Officer and the Chief Executive Officer in the year 2014. It took a few years for the company to make a comeback after implementing several strategies related to data security. Results showed that the second quarter of 2014 showed an increased revenue of 1.7 percent and the digital sales increased by 30 percent.