Objection Handling – People who just don’t believe they need to take action

September 4, 2009 — 2 Comments

This comes from a recent news bulletin published by Heit – a solution provider in Colorado, thanks Tom!  Listen to what’s happening.  There’s a trend here that may change the kind of liability business owners have when it comes to their customer’s data.  One that demands some attention from the top.

“A couple whose bank account was breached can sue their bank for its alleged failure to implement the latest security measures designed to prevent such compromises. In a ruling issued last month, Judge Rebecca Pallmeyer, of the District Court for the Northern District of Illinois, denied a request by Citizens Financial Bank to dismiss a negligence claim brought against it by Marsha and Michael Shames-Yeakel. The Crown Point, Ind. couple — customers of the bank — alleged that Citizens’ failure to implement up-to-date user authentication measures resulted in the theft of more than $26,000 from their home equity line of credit.”  To read more, here is one of several articles online.  While IT people generally don’t have any liabilty, the business owners and executive managers do.  Once again, it is critical that you find the asset owners if you want to create new business opportunity.

 http://www.computerworld.com/s/article/9137451/Court_allows_suit_against_bank_for_lax_security

Advertisements

2 responses to Objection Handling – People who just don’t believe they need to take action

  1. 

    This is a pivotal ruling. It’s an indication that information security isn’t just about compliance anymore. When companies start receiving lawsuits for lax security, there are TEETH to security. It has become a critical legal issue about expected standards of protection … an issue with potentially significant repercussions.

    It goes to show that companies simply cannot go managing security alone.

    • 

      Thanks for your comments Dan. I think you’re exactly right here – these smaller firms that handle sensitive data (healthcare, financial, etc.) are going to be in trouble if they ignore this type of thing. Few of these companies have the expertise in house to build a proper security strategy – it’s going to hurt them if they don’t get input from experts. By the way, your offering looks like a great service from what I’ve seen!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s