1. Itemize the nature of the information security breach at ChoicePoint and how this adversely affected the organization. Be sure to include both tangible and intangible losses in preparing your response. [table] Security Breach| Effect on ChoicePoint|
A pass of the authentication of customers| * Data soon became available after authentication breach * Revealed hole in ChoicePoint security system * Trust of security standards instantly lost| Social security numbers accessed| * Many individuals lost their SSN to the criminals * More info can be accessed as a result which makes the customer or ChoicePoint more vulnerable to other crimes| Basic data accessed| * Private info such as telephone numbers and addresses of customers was taken| Accessed credit reports| * Personal info on credit cards were taken | Identity theft| * ChoicePoint customers had their identity’s compromised and ultimately stolen * The compromise of their identity means that they criminals could use their names and info for other purposes * ChoicePoint was effected by the Class-action lawsuit as a result * Were being investigated by the U.S Senate|
Tangible Losses| Intangible losses|
* Expenses for new security * Expenses for the lawsuit * Customer losses came at a great expense as well * The reason for the security breach itself was an expensive endeavor| * Reputation went down * Loss of customers as a result of not trusting the company * Hard to bring in new customers as a result of trust as well|
2. What actions were taken by both ChoicePoint and the “authorities” to address the crisis, and what is your assessment of each action taken? [table] Action Taken| Assessment of each action|
Police were contacted| * Necessary step in finding out who breached their system * Police assistance was required to see who was...