Introduction
Because of the growing reliance on technology, every aspect of internet information and data must be secured. The applicability and effectiveness of information technology (IT) directly depend on how it affects organizational contexts. While emerging and innovative technologies are essential tools, they could have serious ethical consequences. A memo will be sent to an IT supervisor before a meeting with senior leadership outlining the findings of research based on IT security breaches. The implications of a significant breach from a chosen company will be discussed in the letter, particularly regarding privacy concerns and legal violations. A study of how the breaches affected customer security and safety will also be shared. Finally, recommendations for additional steps to preserve clients’ privacy will be presented.
Research Findings
Organizations are increasingly experiencing cyber-attacks and data breaches due to poor performance and security improvements. (Williams et al., 2016) posit that alarming data breaches at various organizations over the years may have resulted in the sharing and unauthorized use of customers’ personal information. As technology grows to connect people worldwide, the implications for privacy and security must be carefully considered.
One of the most significant data breaches in 2019 occurred at Capital One, where a hacker accessed over 100 million customer personal records (McLean, 2019). ABC News reported that this was not one of the five worst corporate data breaches that affected American consumers psychologically or ethically (McLean, 2019). I selected this incident because the Capital One data breach, while not as significant as the prior breaches, is consistent with the potential loss of compassionate information from teachers and students at Northcentral University.
The implication of the Breach
Client confidentiality and privacy were violated when the Capital One breach exposed customer data. In order to construct a successful system that will effectively resolve conflicts with necessary moral standards while also promoting consumer openness, ethical techniques are needed (Yam, 2018). In response to the hack, Capital One offered free credit monitoring and identity protection to consumers affected. According to McLean (2019), the costs associated with the data breach are projected to be between $100 and $150 million. These costs include legal fees, technical costs, and customer relations reassurance. Personal information of clients was compromised at the Capital One data hack. Even though precautions were in place, this information could be compromised because client addresses, social security numbers, and license numbers were exposed. Consumer fraud has increased by almost 38%, costing them more than $1.48 billion (McLean, 2019). Identity theft tops the list of consumer complaints with a projected 24 percent surge in credit card fraud.
Impact of Breaches on Consumer Safety and Wellbeing
In 2019, Capital One experienced a significant data breach, as outlined above. As a result of the breach, approximately 100 million Americans and approximately 6 million Canadians had their credit card information compromised (McLean, 2019). There was a risk of reputational damage and a loss of confidence over the long term. Losing customers’ trust may be a data leak’s main long-term effect. Customers entrust organizations with their private information, believing they would secure it with the appropriate security measures (Williams et al., 2016). Feeling devoted to and cared for by businesses that one chooses to do business with, all of that disappears when the company suffers a data breach. Customers may be left wondering since they no longer feel respected or appreciated. Financial loss or the theft of private information, including financial and medical records, can result from cyber-attacks. Your reputation and safety risk may result from these attacks.
Recommendations
In order to reduce security threats and prevent data breaches at Northcentral University, it is recommended that the university conduct a vulnerability assessment using a compliance management tool. Managing recurring security audits will also show how the firm manages its information security and policies (Williams et al., 2016). Additionally, IT employees should receive regular training on cyber security procedures and inventorying of their current software and hardware (Ameer & Halinen, 2019). The misuse of personal consumer data, which is an increasing concern, must also be addressed. Data protection standards must be improved nationwide by reforming federal privacy laws and establishing a data protection agency (Yam, 2018). More robust consumer protection practices will be encouraged by effective oversight.
Conclusion
At various levels of organizations, security breaches are accelerating, underscoring the need to implement additional applications and security authentication measures. Every aspect of society uses computers and information systems; thus, cyber-attacks are not just concerns for particular businesses. In order to protect their customers from cyber-terrorist attacks, businesses must now include data security as part of their rising overhead in the twenty-first century.
References
Ameer, I., & Halinen, A. (2019). Moving beyond ethical decision-making: A practice-based view to study unethical sales behavior. Journal of Personal Selling & Sales Management, 39(2), 103-122. https://doi.org/10.1080/08853134.2018.1544077
McLean, R. (2019). A hacker accessed 100 million Capital One credit card applications and accounts. Retrieved from https://www.cnn.com/2019/07/29/business/capital-one-data-breach/index.html
Williams, M., Axon, L., Nurse, J. R., & Creese, S. (2016, September). Future scenarios and challenges for security and privacy. In 2016 IEEE 2nd International Forum on Research and Technologies for Society and Industry Leveraging a better tomorrow (RTSI) (pp. 1-6). IEEE. https://doi.org/10.1109/RTSI.2016.7740625
Yam, K. C. (2018). The effects of thought suppression on ethical decision making: Mental rebound versus ego depletion. Journal of Business Ethics, 147(1), 65-79. https://doi.org/10.1007/s10551-015-2944-2
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