NAILING DATA BREACH NOTIFICATION – BEST PRACTICES FOR CONSUMER CONFIDENCE
The need for compliance and risk managers to understand data breach planning and response is important from start to finish.
In today’s environment, consumers have become more familiar with the reality and impact of data breaches than ever before. The surge in data breaches on the public radar has made a significant impact on consumer attitudes and expectations of businesses, with 62 percent of consumers having received more than one data breach notification involving separate incidents in the last two years (Ponemon Institute, The Aftermath of a Mega Data Breach: Consumer Sentiment).
With this comes what we have coined data breach ‘fatigue’. The Ponemon Institute research found the increase in data breach notifications and related media coverage has caused consumers to possibly become more apathetic. The increase in consumer notification is profound – the number of consumers who reportedly received a data breach notification doubled in 2013 compared to 2012. But, rather than taking action to protect themselves after a data breach, consumers are giving less attention to the severity of being affected and the importance of following recommended remediation directions in the notification letters, according to the study.
As consumers continue to be inundated with information about data breaches, it will be important for risk and compliance professionals to ensure their organisations not only proceed with letters that follow regulations, but also break through the clutter providing concise direction and guidance for customers. Without driving data breach awareness and action, if affected customers do end up experiencing fraudulent activity, the experience has proven time and again to negatively impact a consumer’s relationship with the breached company.
Jul-Sep 2014 Issue
Experian Data Breach Resolution