Impact on the Economy and Industry:
The expanded use of the internet and the amount of credit card purchases worldwide are the major contributors to the increase in security breaches for companies and organizations. Pressure is put on businesses and credit card companies to minimize the security issues. The credit card companies push the liability of loss onto the business who allow the breach; thus doubling the individual company’s expenses for security and having to reimburse the consumer’s losses. The uncertainty raises consumer questions on who to trust with credit card purchases. The TJX Cos. Inc. security breach was the largest to date and has forced the company to spend money to deal with the security problems as well as attempt to retain customers and attract new ones.
In the wake of TJX’s security breach, consumers can only become reluctant to trust retailers, such as TJX, with credit card purchases. Globally, the problems are proof of the potential for identity theft and increases awareness. On-line retail purchasing is the most vulnerable to the issues of security and would be affected the most financially. Credit card companies in turn are impacted if the issues are not addressed creating an issue economically for all. The decrease in credit card purchases remains to be seen, but if the problem of security is left undressed the retail industry would suffer. There have been industry attempts to try to minimize the potential for security breaches, however breaches continue and business continue to pay until Congress steps in.
CSIA Renews Call for Congressional Action on Cyber Security . (2007, September 6). Retrieved October 9, 2007, from https://www.csialliance.org McGregor, J. P. How the TJX Breach May Change Security Awareness. (2007, April 11). Retrieved October 9, 2007, from https://www.scmagazineus.com
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