Wednesday, March 02, 2005

The hidden costs of security (and privacy) incidents

A Forrester Research reports considers the costs often associated with security and privacy breaches:

Analyst: Hidden costs in security breaches:

"As consumers lose confidence in the security of online transactions, companies are missing the mark in understanding how customers' concerns will come back to haunt them, a Forrester Research analyst said Tuesday.

Businesses often fail to realize that security breaches to their Web sites, disclosure of sensitive customer information or identity theft can result in secondary costs such as spikes in customer support calls and additional marketing costs to repair damaged reputations, Jonathan Penn, a Forrester security analyst, said at a presentation in San Mateo, Calif. The event was sponsored by online-enterprise risk management company Watchfire...."

I didn't find the report on either the Forrester or Watchfire sites, so we'll have to take CNet News' word on it.

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