Mr Zhu Qi
How should the Flayton Electronics team respond to the crisis? 1. Introduction
As information technology (IT) and information systems (IS) improving rapidly, a massive number of business activities can be done by IT and IS. However, it is inevitable that the risks and threats are increasing at the same time. Thus, new kinds of risks and crimes, which mentioned by Choo and Smith, may emerge during doing the cyber events like online payments, auctions, gaming, social networking sites and blogs (Choo & Smith, 2008). Obviously, in Flayton’s case, the company suffering from data breach which happened at the processes of online payments is a typical and common information technology problem recently.
Adebayo have defined data breach as well as security breach is an action that disclosing the secure and confidential information to an untrusted environment by an unauthorized individual (Adebayo, 2012). The Data Breach Investigations Report (DBIR) has shown that there were 855 incidents of data breach and 174 million compromised records in the world in 2011, most of which were attacked by hacker and malware (DBIR, 2012). As we can see that the probability of data breach happened in 2011 was relatively high, and what Caldwell predicted that the number of data breaches will continue to rise up in the later years (Caldwell, 2012). Thus, there is no doubt that it will be an enormous challenge for the companies like Flayton Electronics.
In Flayton’s case, the data breach informed by the Union Century Bank actually occurred in Flayton Electronics, a 25- year company. Because the young company never encountered such situation, the top management team face the new territory and difficulties, and the whole company were at stake. In this paper, the solution will be provided by the author. On the one hand, there is a debate on whether the company should inform their customers that their data and information had been revealed, if so, when and how to make
As information technology (IT) and information systems (IS) improving rapidly, a massive number of business activities can be done by IT and IS. However, it is inevitable that the risks and threats are increasing at the same time. Thus, new kinds of risks and crimes, which mentioned by Choo and Smith, may emerge during doing the cyber events like online payments, auctions, gaming, social networking sites and blogs (Choo & Smith, 2008). Obviously, in Flayton’s case, the company suffering from data breach which happened at the processes of online payments is a typical and common information technology problem recently.
Adebayo have defined data breach as well as security breach is an action that disclosing the secure and confidential information to an untrusted environment by an unauthorized individual (Adebayo, 2012). The Data Breach Investigations Report (DBIR) has shown that there were 855 incidents of data breach and 174 million compromised records in the world in 2011, most of which were attacked by hacker and malware (DBIR, 2012). As we can see that the probability of data breach happened in 2011 was relatively high, and what Caldwell predicted that the number of data breaches will continue to rise up in the later years (Caldwell, 2012). Thus, there is no doubt that it will be an enormous challenge for the companies like Flayton Electronics.
In Flayton’s case, the data breach informed by the Union Century Bank actually occurred in Flayton Electronics, a 25- year company. Because the young company never encountered such situation, the top management team face the new territory and difficulties, and the whole company were at stake. In this paper, the solution will be provided by the author. On the one hand, there is a debate on whether the company should inform their customers that their data and information had been revealed, if so, when and how to make