Managing the Threat to Customer Data

High profile data breaches seem to occur with alarming regularity these days. Consumers are reeling from the realization that they can no longer trust institutions to safeguard their personal and financial data, and they are striking back by taking their business elsewhere. According to the 2008 Ponemon Cost of a Data Breach Report, lost business now accounts for 69 percent of the total cost of a data breach, showing that customers are increasingly prone to terminate their business relationships due to lost data. Particularly in these trying economic times, companies simply cannot afford to lose customers as a result of breach. Phil Dunkelberger, CEO of data protection stalwart PGP Corp., says that corporations need to do more to protect customer data, but the fault also lies with lawmakers, and even consumers themselves.