TXJ Companies had a few security controls in place such as, Wired Equivalent Privacy (WEP), encryptions system, Firewalls, and Passwords
WEP is an outdated encryption security that is easily hacked into. The firewalls that were in place did not secure traffic from the in-store kiosks. The passwords used were not different from vendors. Changing from the outdated WEP to Wi-Fi Protected Access (WPA) encryption would have offered stronger resistance to the attackers. Having the kiosks secured with firewalls, and proper installation of the security software that TXJ had purchased would have offered more protection. Changing the system passwords so that they were different from vendors would be another step toward a secure network. Encryption for email and using anti-virus software would be some security controls that would make security better. The business effect of TXJ’s data loss on the company itself is estimated to cost about $1 billion, just in recovery efforts from the loss. This figure includes attorney fees and promotional programs to restore consumer confidence. The banks cost to replace the stolen credit cards is estimated to be $300 million. This does not include the dollar amounts that were charged to the stolen cards, that is estimated at $75 million. The cost to consumers is unknown but it could be very high if identity theft was perpetrated. TXJ also experienced a loss of revenue because many customers refused to shop there after TXJ’s system was breached Several moral dimensions would apply to this situation. The information rights of the individuals and the organization were lost when the data was stolen. It was up to the organization to offer that protection and they failed to meet this obligation. Accountability and control is another moral dimension that would apply in this case. Placing the responsibility on TXJ for the loss and holding them accountable to make amends makes sense in this case. System quality is another moral dimension that...
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