The cost of data security breaches to companies and businesses in this country is enormous. Therefore, it is very important for business that use the sensitive personal information of customers and others to have very good data security measures in place to prevent a data security breach. Businesses that have been victims of these breaches have illustrated that the expenses for those companies that are hit with a data security breach makes it worthwhile to have the best data security measures in place before something like that were to occur. Throughout this paper, I will discuss the recent data security breach incident of Toronto-Dominion Bank, which has a large unit in the state of New York.
On October 15, 2014, Bloomberg.com, an online business website, reported that TD Bank had resolved claims over a data security breach which had occurred in 2012. In that data security breach, the electronic files of more than 260,000c customers was lost. The unencrypted backup tapes containing 1.4 million customer files and information generated pertaining to these customers for the last eight years was lost. To resolve the matter the bank agreed to pay $850,000 to settle a multi-state probe.
The article goes on to state that “the number of cyber security incidents has soared 48 percent to 42.8 million this year” (Smythe, 2014). In addition, the number of data security breaching occurring in the state of New York has tripled between 2006 and 2013. These breaches forced business to shell out more than $1.37 in 2013 alone. The top culprit that is costing these companies is hacking.
Recently, JP Morgan Chase lost the data for more than 76 million households. In my opinion, a massive situation such as this illustrated the need for companies to invest in top notch cyber security measures. The cost of pay for cybersecurity at the front end and keeping it up to date, could not cost a company as much in either money nor its reputation and goodwill if a data security breach were to occur.
- Smythe, Christie. “TD Bank Resolves Claims Over Data Breach, New York Says.”
Bloomberg.com. 15 October 2014. Web. 20 October 2014.