Data breaches have become routine, but the public reaction to these events is changing. Consumers are increasingly wary of sharing their information — just ask Mark Zuckerberg — and this trend raises the stakes for all financial institutions and merchants.
Even though a denial-of-service attack on an e-commerce site is not classified as a breach because data is usually not compromised, the 2018 Verizon Data Breach Investigations Report claims it is a growing menace to merchants who rely solely on their websites.
Before reports of the data breach at Saks Fifth Avenue, Saks OFF 5th, and Lord & Taylor fade from the news cycle, there's one detail that should alarm merchants, card issuers and consumers — and sets a tone for future data breaches.
Are the incentives for protecting card data so lopsided that merchants feel little need to do more? Or is it wrong to ask merchants to fix the faults in a payment card ecosystem they had little hand in creating?
Like a crime wave, data leaks and vulnerable static identifiers show no sign of abating, as MyFitnessPal became the latest in a string of sites to have users' data exposed trough usernames and hashed passwords.
While there is a collective sense that data breaches are simply a side effect of our digital existence, there are real costs for the companies impacted. The ones that are hit the hardest are the ones that are least able to weather the fines, remediation costs and lost reputation.